Tuesday, October 15, 2013

Walker/Republican Budget for 2015-17: Shortfall of $725 Million, spending and tax level gap gets wider and problematic.

Did you know that the 2015-2017 budget is project to be short $725 million. So with the rosy surpluses prompting tax cuts and corporate giveaways, we’re not on a sustainable road. Anybody hear that mentioned by the Democratic Party? Is that too far to look down the road? Well, we were warned. More down below.

Republicans sure know how to spend down a surplus. I also wonder what they’ll do about their transportation shortfall. Oh well, who cares.  A property tax cut is on its way:
jsonline: The Legislature's budget committee voted unanimously Tuesday to spend down a state surplus of $100 million to deliver $33 in property tax cuts for the typical homeowner over the next two years.But wait, the future isn’t looking good at all, and heck, we’ve got a government shutdown too.

Under current expectations, the property tax cut and the other bills would lower the state's balance by $120 million in the current two-year budget and add $180 million to the projected shortfall in the next budget, according to figures released by the Legislature's non-partisan budget office Tuesday.

Rep. John Nygren (R-Marinette) said the panel had a responsibility to return the state's current surplus to taxpayers. "I'm going to side on the side of the taxpayers every single day and give it back to them," Nygren said.
You tell em John:
The report from the Legislative Fiscal Bureau followed a report Monday from Walker's administration that the state surplus heading into the current 2013-'15 budget was $89 million more than expected ... $759.2 million in the state's main account. 
BIG PROBLEM DOWN THE ROAD: My head is spinning trying to keep up with surpluses and shortfalls:

…along with the state budget the proposals passed Tuesday would swing the state's main account from its current surplus to a $725 million projected shortfall for the 2015-'17 budget. That would be an increase of 33% from the previously estimated shortfall of $545 million.

the growth in the budget gap between the state's spending and taxing levels as laid out in state law would also be one of the fastest increases seen over that period.
That sets the table for a future unfortunate Democratic governor or legislature.

3 comments:

Gareth said...

The solution is simple. Pile up more debt and then use it as an excuse for harsher austerity. It's a win-win for the Cons who wish to destroy government services for anyone but the rich.

Democurmudgeon said...

I actually think that's the plan in congress. Tea party GOP can't lose, they run up interest and debt, force bigger cuts in spending. Amazing.

Jake formerly of the LP said...

Dead on Gareth. Straight out of the "starve the beast" handbook. And if they do their jobs right, it handcuffs the next person coming in, so we're stuck with these horrible policies for a long time.

Just like another Dubya, when you think about it.