Trump trashes Walker's Wisconsin.

Credit Donald Trump for telling fellow conservatives the truth about Scott Walker's Wisconsin. Things aren't going well here, despite the fact that stand with Walker voters approve of the job he's doing now. The new Marquette University Poll shows an improvement, up from 39% to 43%.

I'm hoping conservative voters are more informed than the right wing trolls who seem preoccupied nationwide with correcting grammar and spelling in news articles. Content not so much, if at all.

Trump's stay in Wisconsin will help expose Walker's lies as only Trump can explain them:

WSJ: At the rally, Mr. Trump accused Mr. Walker of overstating the strength of the state’s economy, a criticism that fell on receptive ears of an audience that booed at the mention of their governor’s name.

"He’s not doing such a good job, Scott Walker, but he’s convinced you there’s no problem. Both Walker and Cruz want TPP — that would hit Wisconsin so hard.”

Trump was point blank about Walker's Wisconsin:

Trump then read a long list of economic data points to make the case that Walker has failed: total state debt $45 billion, 20,000 fewer people in labor force than 7 years ago, 800,000 food stamp recipients; middle class hit hard due to loss of manufacturing; 15,000 jobs lost to NAFTA and more.

“He’s not doing such a good job, Scott Walker, but he’s convinced you there’s no problem.”

Trump's $45 billion number includes a whole bunch of debt, including the states healthy pension fund. The real number is around $14.1 billion, up about $860 million from his first day in office. Walker 's Wisconsin was also coming up $2.2 billion short in revenue, prompting the huge cuts to the UW and state parks, among other things. Trump continued:

"You had a $2.2 billion budget deficit and the schools were going begging and everything and everything was going begging because he didn't want to raise taxes because he was going to run for president.

"So instead of raising taxes he cut back on schools, he cut back on highways, cut back on a lot of things. And that's why Wisconsin has a problem and you're losing jobs all over the place."

Here's Trump on right wing radio WROK:



No Love for Paul Ryan: 

The audience also surprised Mr. Trump by booing the mention of a local luminary, House Speaker Paul Ryan, whose hometown is Janesville. “How do you like Paul Ryan?” Mr. Trump said, and when the crowd booed, he said, “Wow. I was told to be nice to Paul Ryan. He is the Speaker, he is very nice. Wow, are you sure you are all Republicans? Are you mostly conservatives?”

I especially liked Trump's honesty about the Republican hypocrisy about eminent domain:

Trump called the Club for Grow (he donated $15,000 to them for Scott Walker recall election) a“crooked outfit.” Trump said that a representative of Club for Growth had met with him and written to him asking for $1 million and now the group is running ads against him in Wisconsin.

“He writes me a note asking for $1 million dollars. Now they are doing ads all over Wisconsin on eminent domain. By the way without eminent domain you would not have schools roads or hospitals... but they are complaining about eminent domain which is kind of funny because these people love the Keystone pipeline... which is all about eminent domain,” he said.

But the latest flap might be his downfall as a candidate; abortion, where women are prosecuted and men go free:

When continually pressed for what the answer is regarding punishing women who would break any theoretical ban, Trump said the “answer is that there has to be some form of punishment, yeah.” 

When pressed on if the United States should change the law of the land on abortion as set by the landmark U.S. Supreme Court ruling Roe v. Wade Trump responded: “You’ll go back to a position like they had where people will, perhaps, go to illegal places.” Still, he maintains “you have to ban it. This issue is unclear and should be put back into the states for determination.”

The MSNBC host followed up wondering if a man should bear responsibility for abortions as well, to which Trump said “no” he didn’t think so. 

Here's a bit of analysis featuring Trumps reversal a few hours later:

GOP Budgets - "just as rough as the last time" - the result of badly written budgets, not spending.

Republicans have always had a foolproof budgeting plan that can't fail in the eyes of their low information voters: Got a budget shortfall again? It's not bad budgeting, they just have to cut spending again.

It's never due to bad decisions and supply side nonsense. Sen. Alberta Darling said exactly that when a reporter asked her what happens if revenues don't increase due to tax and spending cuts:

Darling: "...you have to further reduce the size and scope of government..."

They actually believe it's never their fault. After another bad budget with the usual predicted revenue shortfalls, clueless Republicans face another "rough" spot of their own making:

(Republican Sen. Scott) Fitzgerald told county officials he expects the next budget will be "just as rough as this past one."

Fitzgerald of course blamed the state's shortfall on a lagging national economy...Obama basically. Oddly, Minnesota has a $2 billion surplus, and no shortfall. We could blame Obama for that, right?

Also, if this were a real problem, then why aren't Republicans writing responsible budgets that account for that "lag" (because they can't budget). WPR audio:



While blaming Obama, Walker showed off his bad judgement by foolishly holding onto our fading manufacturing base. Two decades later, he's apparently still not heard that sucking sound...:

Wisconsin's large manufacturing sector is heavily influenced by national and global factors, Walker said. "But we’re still going to persevere..."

In response, as covered by Jakes TA Economic Funhouse, one of my favorite fighting Democratic legislators Gordon Hintze put out the following to the point press release. I hope we see more of this:

One final SUPPLY SIDE note: Below, I've collected a few other Republican supply side budgetary problems ignored by the press who are preoccupied with the GOP primary circus. Long story short, Republicans can't run a functioning government. It's a supply side death spiral nationwide, starting with Kansas Gov. Sam Brownback:

AP: Kansas collected $7 million less in taxes than expected in January, and a top aide to Republican Gov. Sam Brownback said that ongoing problems in key parts of the state's economy are to blame. Kansas tax collections have fallen short of expectations in 6 of the 7 months of this fiscal year … disappointing corporate income tax collections and lower-than-anticipated sales tax collections. Since the current fiscal year began in July, the state has collected$26 million less than anticipated, a shortfall of 0.8 percent … Kansas has struggled to balance its budget since the Republican-dominated Legislature slashed personal income taxes in 2012 and 2013 at Brownback's urging in an effort to stimulate the economy. GOP legislators last year increased sales and cigarette taxes to head off a deficit in the current budget. 

You've just gotta love this down-the-rabbit-hole response:

Brownback has argued that the income tax cuts have stimulated the economy to prevent larger shortfalls in tax collections

And in Oklahoma, where they sadly reelected another bad Republican supply side governor....

Oklahoma Gov. Mary Fallin addressed the people of in her annual State of the State address saying her first priority is the state's estimated $1 billion budget shortfall … Governor Mary Fallin and Republican legislative leaders have said they intend to target "off-the-top" funding streams earmarked for things like transportation and public schools as part of an attempt to fill the roughly $1 billion budget hole. 

Minnesota's Democratic Party projected Surpluses vs Wisconsin's Republican projected shortfalls.

As Minnesota out distances Wisconsin in almost every way, Republicans should be forced to answer the question why Wisconsin can't keep up. Oh sure, they'll bore us with old talking points that in no way compares to the way Minnesota is beating us. Scott Walker can't pull out his only bragging point about the unemployment numbers since Minnesota's is even lower. 

Growth may be slower in Minnesota, but that's because the state has already recovered, while Wisconsin is still trying to gained back the jobs lost during the Bush Great Recession. 

But Walker's Republicans will say Minnesota's surplus is bad, because it means they've overtaxed their citizens. SJ: 

While Wisconsin's budget, enacted in July, sets the state up for a $210 million structural deficit, legislators across the Mississippi are arguing over how to spend a $1.9 billion surplus.

Give that surplus money back!!! That's what George W. said when he became president, paving the way for tax cuts. Instead of using those surpluses to pay the nations debt and replace our crumbling infrastructure, he wiped out what Mitch Daniels called "surpluses as far as the eye could see." And for good measure, plunged the nation into trillion dollar wars. 

Projected surpluses should be used to replenish and rebuild, improve and save, not give back as tax cuts. The money we invest now will be money our kids will not have to raise later on in the form of taxes. Tax cuts now just gives the bill to another generation. 

Some of Minnesota's extra money must go to its budget reserves, but the remaining $1.2 billion is up for grabs. Minnesota Gov. Mark Dayton, a Democrat, is calling for the money to be spent on road and bridge improvements and expanding early childhood education. 

But Minnesota Republicans argue a surplus that large is a sure sign the state has overtaxed its citizens. 

Wisconsin legislators will have a $210 million projected shortfall to account for going into the 2017-19 budget.

Walker, Republican no tax pledge sinks existing road work for a total of 5 years.

Like I’ve always said, spending cuts will never be a substitute for budgeting. And now we’re about to pay dearly, wiping out any savings. Brilliant.

You see that road work up ahead, well it might be there for the next 6 years, along with the traffic tie ups and detours. I can’t imagine what they’re going to do with the snow at some of those sites.

Scott Walker wanted to borrow big time for transportation, which was bad enough, but “no tax” pledge Republican legislators ran out of money thanks to past and present tax cuts. Now many of the existing road construction sites will be delayed till 2021, believe it or not. jsonline:

The state Department of Transportation is delaying five major road projects because it doesn't have the money for the work under the state budget crafted by Gov. Scott Walker and his fellow Republicans in the Legislature.

The delays — including on some stretches that already have orange barrels on the road — could end up being longer because legislators for years have been unable to come up with ways to find new revenue for highways … will likely have a cascading effect that will push off work on future projects.

Tightwad Republicans will now run up the costs for taxpayers who though they could freeload for awhile.

The delays will cause the cost of the projects to rise because of inflation. Estimates of the added costs are expected in February. Work on the projects won't stop, but it will slow down.

The guy pushing a bill attacking civil service protections for Walker isn't to happy:

The delays surprised Sen. Roger Roth (R-Appleton), who told WHBY-AM this month he did not expect any delays on Highway 10/441 in the Fox Valley. The highway is being expanded and reconstructed between Highway 41 and Highway 47.

But the $482 million project is one of those the DOT is pushing back, putting off its completion until 2021. Construction began last year, so drivers will have to put up with road work on that stretch for at least seven years under the revised schedule.

Trump plays Walker's Deficit Con Game! Gotcha.

What goes around comes around: I loved the fact that Trump blamed Walker for losing $2.2 billion in Wisconsin, a wonderfully misleading number that's not true...but it was so ironic. Satisfying beyond belief, we finally saw a Republican become the victim of their own twisted con game. Here's why:

In November 2014, the Wisconsin Department of Administration said state agencies' budget requests would exceed expected revenues by $2.2 billion dollars for the 2015-2017 budget cycle.

The Irony; Walker's supposed $3.6 billion inherited budget deficit, which he mentions in the clip below, is based on the same misleading "budget requested" numbers used by Trump. So Trump used the same trick Walker's been using since he became governor. And Walker never caught on apparently, because a smart guy would not have brought it up, much less highlight the same con.

So Trump inadvertently, out Walker'ed Walker: 

The Truth about Walker's "Crap" Budget.

In my opinion, The Progressive's Ruth Conniff is one of the most powerful liberal voices in the media right now. Her well framed and concise analysis is a refreshing break from the chaotic ramblings of most progressives.

Conniff offered up the following straight forward look Scott Walker's budget "crap" in the latest Isthmus. Democrats would be wise to use the same style of common sense messaging, and drop the cliches:

The budget was 12 days late, garnered more “no” votes from Walker’s GOP colleagues than any other budget he has tried to pass, and was described by at least two Republicans in the state Legislature as “crap.”

The budget he signed reflects the two main themes of his political career: destroying public institutions, from schools to parks, and eliminating oversight and accountability when it comes to spending public funds … a state budget Assembly Minority Leader Peter Barca (D-Kenosha) aptly described as throwing the people of Wisconsin under Walker’s campaign bus.

Here is a prime example: The state budget expands a school voucher program that, after 25 years, has not improved academic outcomes for children in Milwaukee. Instead of demanding better results, the new budget eliminates the requirement that voucher school students take the same standardized tests as students in the regular public schools.

To deal with the bad news about WEDC and other examples of cronyism and shady dealings, some unnamed person inserted a provision in the budget to make state government impervious to open records requests.

Then there were the goodies like getting rid of the wage floor for construction workers (Walker issued a special statement proudly announcing that his budget rolls back this New Deal-era protection for workers) and repealing the weekend so employees can “volunteer” to work seven days in a row.

Walker's Wisconsin raises big questions about "crazy Republican math!"

Finally, at least one Republican candidate for president may have to answer for his own failed economic policy, Scott Walker. Here's a sample of that coverage:

Bloomberg Business: Wisconsin’s projected tax collections … a blow as the potential Republican presidential candidate presents his state as a laboratory for limited government … a more robust forecast could've softened unpopular trims to primary and secondary education as well as the University of Wisconsin.

The state’s nonpartisan Legislative Fiscal Bureau: “If there is any additional revenue in the current year, it will likely be offset by reduced growth rates.”

Outside Wisconsin, the second-term governor presents his state as a model for the fiscal philosophy favored by his party’s core voters and top donors.

Democrats blamed Walker’s policies for the budget challenges: “With his complete failure to grow our economy, a deeply unpopular budget, and plummeting approval numbers, I get why the governor would rather be in any other state but Wisconsin,” Senator Jon Erpenbach said in a statement. Without changes, the state faces a shortfall that may reach $2.2 billion in two years starting in July, according to Walker’s analysts. Tax cuts supported by Walker and Medicaid spending contributed to the deficit.

While republicans talk about halting or getting rid of laws that don't work, they're not talking about their failed policies. Democrats have a logical and better idea:

Journal Sentinel: Democrats ... on the Joint Finance Committee say the state should avoid the proposed education cuts by accept federal money to offset state health care spending, halting the phase-in of tax breaks for manufacturers, and not expanding state money for voucher programs for private K-12 schools.

But that kind of flexibility isn't possible. Republicans are on ideological autopilot:  

Legislative leaders said they wouldn't delay the phase-in of previous tax cuts or stop expansion of private taxpayer-funded voucher schools to undo more of the $300 million in proposed cuts to the University of Wisconsin System over two years. "For those of us who have been crossing our fingers and going to church on Sunday, it didn't work," Vos said of the flat tax projections. "We'll figure a way to make it all work out in the end."  Bob Lang, the veteran head of the fiscal bureau, said that tax revenue for this fiscal year is running behind projections by about 0.4 percentage points, or about $60 million.

Here's coverage from WISC and WKOW:

Always a blistering critique from PoliticusUSA, and Sarah Jones:

PoliticusUSA: Governor Scott Walker (R-WI) promised Wisconsinites that he could jump start the economy with tax cuts for big business, even though this Republican economic model was partially responsible for the recession from which the state — and indeed the nation — was suffering. Just days ago, the Republican Governor trolled President Obama, claiming the country needed Walker’s “pro-growth economic policies”. Enter crazy Republican math, stage right. Things are not adding up for Walker’s budget.

The state’s GDP growth and personal income growth have trailed the national rate. Republicans have tried to blame Democrats for the economic failure of their policies by saying they were in charge “for many years”, but PolitiFact threw water on that false notion.

Sane people who can add would be thinking maybe we won’t roll out our additional tax cuts to manufacturing and farm businesses that started in 2011, especially because it turns out that the tax credits are going to cost “at least $275 million in additional lost tax collections over the next biennium, or more than double what was originally estimated.”

Walker's Budget shortfall: Tax Cut Madness, Dwindling Revenues, and now bizarre State Fire Sale - Everything must go!!!

Gee, revenues came up short. Who could have foreseen that happening?

Democrats, that's who. And who didn't believe the Democrats? Republicans and their Borg-like believers who laughed at the whiny Democratic tax and spender election losers.

After all, Scott Walker sounded so sure of himself and his supply side corporate welfare state. Businesses did promise more jobs if they just had more money via tax cuts...suckers. No avalanche of jobs folks. Funny how republican politicians keep falling for that.

Magical Budgeting: Tax Cuts = Revenue Increases. That how they say it works...in fantasy land.

Scott Walker's twisted spin on the bad news? He wants credit for seeing the huge budget deficit coming, prompting his fire sale cuts to everything that makes us Wisconsin. He's a courageous leader with big and bold ideas. And that previous bad budget republicans couldn't stop bragging about in the 2014 elections? Heck, that made all of the big and bold cuts today possible. Are they good or what?

Here's the tweet history:

Come on conservative voters, don't tell me you'll let these guys talk to you like this:

The Joint Finance co-chairs stressed today the revenue projections remain on target compared to what LFB announced in January. They also stressed the $2 billion in tax cuts Republicans have pushed through in recent years.

Weirder still, who knew budgets weren't for paying bills, but showing priorities? Like WEDC's lost loans and payouts to outsourcing companies? Getting rid of the state university and parks the taxpayers built? It's all about "priorities:"

"Budgeting is about priorities ... and continue to protect Wisconsin taxpayers," said Sen. Alberta Darling, R-River Hills, and Rep. John Nygren, R-Marinette.

Wisconsin Poll warning to Walker and Republican plunderers; this is not what the public wanted!!!

The latest Wisconsin Survey, conducted by Wisconsin Public Radio, Wisconsin Public Television and the Strategic Research Institute at St. Norbert College, again confirms how unhappy voters are with Scott Walker's bizarre scorched earth budget proposal. Despite not having anywhere to turn to make for the budget shortfalls, republican legislators are taking the heat and taking back many of the cuts. It will be interesting to see what magic they come up with to save their jobs.

Before you get to depressed at the tighter race shown in this poll, 44% for Hillary Clinton and 42% for Walker, take a look at the political makeup of the poll respondents:

The huge conservative response may be the reason why the Marquette Poll and PPP more accurately gauged public sentiment.

Here are the poll results I thought most interesting:

Republicans/Walker not on the same page as Wisconsinites by a long shot.

We've heard it from Republicans for years; they’re doing what the public elected them to do. Elections have consequences. Not a positive sounding message. Really, the public wants this?

The public is saying no.

Is this enough to get conservative voters to “throw the bums out,” and go with a Democrat? We can only hope.

Gov. Scott Walker's approval rating of 41 percent is its lowest in three years, according to the latest Marquette Law School Poll … the public overwhelmingly opposes Walker's proposed cuts to K-12 education and the University of Wisconsin System, the poll shows.

How could a guy get it so wrong? The media never seems to ask that one simple question. Walker and the majority Republicans can try to adjust the original budget, but that doesn't change the governor’s out-of-touch and out of whack priorities. And the public doesn't like it.

Walker’s promise to do for the country, what he’s done for Wisconsin, is not really a good thing:

Those polled who said Wisconsin is headed in the right direction -- 43 percent in the recent poll compared to 51 percent in October.

And Dumb Ron Johnson isn't fooling anybody either, according to the poll.

And former Sen. Russ Feingold, a Democrat, outpaces the man who defeated him, Republican Sen. Ron Johnson 54-38 in a hypothetical matchup for 2016.

Hyperbolic BS about their Success: This is common theme for Republican governors running for president. Almost all of them are tanking their state economies with over-the-top tax cuts, forcing their legislatures to make draconian, just to pay their existing bills. And they want to do that nationwide?

The poll also showed widespread opposition to Walker's proposal to cut $300 million from the University of Wisconsin System: 70 percent oppose the proposed UW System cuts. Lawmakers have also suggested possible restoration of a portion of the proposed cuts.

Like that’ll be enough to make things right? Or how about this no brainer:

$127 million from K-12 schools: 78 percent oppose the school cuts, which Franklin called an "eye catching level of opinion." 

Buying Walker’s tax cut bullshit for just $5 a year…don’t think so. Scottie actually thinks this silly statement explains away everything:

He said there has been “little or no talk” about how the budget lowers property taxes and caps UW System undergraduate tuition. The budget lowers property taxes on an average Wisconsin home by $5 in each of the next two years. “Those are all really positive things and really nobody is talking about those things,” Walker said. “They’re only talking about things where there might be some level of disagreement.”

The master of understatement…yes, funny thing, we’re talking about a very disagreeable budget.

The poll also found that 60 percent of those surveyed opposed Walker's plan to make the Department of Natural Resources board advisory only, putting more control in the hands of the administration.

Gee, who could have predicted such opposition. Certainly not Walker, who seems surprised:

Republican leaders of the state budget committee announced this week they removed that proposal from the budget.

Last, but definitely not least: 

In a potential 2016 matchup, Hillary Clinton, a Democrat, leads Walker 52-40.

• 54 percent oppose, and 37 percent support, lifting the 1,000-student cap on vouchers statewide, as Walker has proposed.

• 48 oppose Walker's plan to kill funding for state tests linked to the Common Core State Standards in math and language arts.

• 44 percent oppose making those on Senior Care drug coverage use Medicare Part-D while 30 percent support the idea. One quarter of those surveyed had no opinion.

Confidence Buster: Republicans don't know details, reasons behind budget plans.

It's becoming pretty obvious Scott Walker is running our state government by the seat of his pants. Walker has stayed above the fray by keeping every controversial budget proposal a secret until the very last moment, all of them:

jsonline: "...unexpected legislation known as Act 10 … Walker said he wouldn't let legislation affecting private-sector workers reach his desk. Now he says he'll sign it. Walker didn't campaign on some of the most sweeping changes in his current budget proposal: freezing a stewardship program for state lands; borrowing $1.3 billion for transportation; and cutting state universities by $300 million in exchange for unhooking them from many state laws." 

That doesn't even count corporate naming rights to state parks, a 20 week abortion ban, huge cuts to the DNR, eliminating the 48 hour waiting period for gun purchases, etc. It's like we're erasing 100 years of progress.

So I thought the two stories shown here, as they appeared on WPR's website, explained a lot about the GOP's lack of forethought and understanding behind their big bold changes:

Candidate for President Scott Walker Meets the Press and Nation with Big Fat Lies!!!!

Stop it...stop it now. Scott Walker is running for president for gods sake. Will the media stop pretending this is a story?

Chuck Todd asked Scott Walker a number of great questions, but unfortunately, didn't ask the much needed followup questions. So all we got were big fat lies.

Walker National Lie # 1: Walker repeated 2 lies to a national audience already disproved by Wisconsin PolitiFact:

Walker National Lie # 2: Walker repeated and stuck to the idiotic notion the government would renege on its Medicaid payments. In reality, those payments fluctuate based on a formula that adjusts to the economic health of the targeted state. He must know that, making this one big fat lie:

Walker's insulting "plan" to serve four years: Seriously, "plan" kind of gives that BS away, ya think?



I'm waiting to see just how Walker brings up former Governor Jim Doyle's Great Recession.

Michael Czin, the DNC's press secretary, said in a statement that targeted Walker's record on jobs, New Jersey Gov. Chris Christie on credit downgrades and Texas Gov. Rick Perry on his state's poverty rate. "The fact is that the gubernatorial wing of the GOP is every bit as broken and dysfunctional as the congressional wing of the party," Czin said.

Another of Walker's Biggest Campaign Lies: we have a $535 million budget surplus!!!

Who didn't see this one coming? "Stand with Walker" drones, that's who:

Here's how slick Scotty did it again; it's the old career politicians double standard trick:

Walker’s own budgets report the "structural deficit" number using the method the Fiscal Bureau used to come up with $1.8 billion. Indeed, Walker has used the "structural deficit" estimates to his advantage in the past and even has made it the centerpiece of his re-election campaign.  the governor is seeking to have it both ways, trumpeting the bureau’s method when it suits him and rejecting it when it does not. Walker told debate viewers: "The next state budget will begin with a surplus of over half a billion dollars -- $535 million to be exact."

That rosy number flies in the face of the official estimate that uses a long-established method used by members of both parties, and the governor’s budget office.

We rate the claim False.

Walker's Problem: Deficit is Growing while the economy is growing!!!

WPR reporter Shawn Johnson should be thanked for doing what others in the media have decided to glance over, and that is to put the disastrous new projected structural deficit in historical perspective:

“The nonpartisan Legislative Fiscal Bureau calculates the state's structural deficit has grown to nearly $1.8 billion, the third-largest gap reported by the state in the past two decades. The structural deficit was larger when Walker took office and larger yet in 2003. Those shortfalls were driven by recessions, however, whereas this deficit has taken shape at a time when the economy was growing.”

I've also written how Republicans have an immense problem with something called defensive “projection;” it’s where people "defend themselves against unpleasant impulses by either denying (or knowing of) their existence in themselves, while attributing them to others."

Yes, I have a Scott Walker example of projection (audio below):

“These are the people that gave us a $3.6 billion budget deficit, I mean, this is selective amnesia on their part. The bottom line is we inherited something much, much greater than what we're talking about now.”

And as Shawn Johnson reported: 

“The structural deficit was larger when Walker took office and larger yet in 2003. Those shortfalls were driven by recessions, however, whereas this deficit has taken shape at a time when the economy was growing.”

Walker game plan for a possible Deficit? Walker is already running from a solution, and instead wants to hold onto those irresponsible tax cuts for dear life. It beats working:

Walker said he expected those revenues would pick up and brushed off criticism.

State Sen. Jennifer Shilling is asking Walker to show us some leadership:

"I think the governor should be truthful and forthcoming about how his administration would tackle these numbers..." 

Wisconsin Revenues Ratchet Downward...Forever? Republicans can actually benefit from their mistake, as usual, by challenging the possible incoming Democratic governor to “raise taxes” via the repeal of a few damaging corporate giveaways.

Another words, once taxes are cut, it would be political poison to repeal them. Checkmate. 

$1.8 billion structural deficit? Republicans excuses abound....

You would have thought the sky was falling the way Republicans have been complaining about the slow jobs and business recovery under the Obama administration. Add to that the non-participatory unemployed and you've got what Republicans call a failed policy.

But now that we have slower jobs and business growth in Wisconsin under Republican Scott Walker, including a growing deficit (unlike the declining U.S. deficit under Obama), we’re being told by the GOP that we’re moving forward and Democrats are whiners.

Here’s the reaction by Republicans over the news of a possible $1.8 billion structural deficit due to Scott Walker's election year tax cuts:

Senator Paul Farrow: “Contrary to what we will hear from Legislative Democrats, the sky is not falling. These projections by the Legislative Fiscal Bureau are not perfect calculations and should be treated as a learning opportunity."

Deficits are learning opportunities? Projections aren't perfect? Please. Republicans like Farrow continue to downplay their party’s Great Recession and the impact it had on state economy. Even worse, Farrow is wondering why the Democrats don’t help solve the state’s problems, even though they've been shut out of the process by our authoritarian winner-take-all Republican government:

“I find it disingenuous for the same Democrats who drove our state into a truly staggering $3.6 billion deficit … We are a long way from experiencing a full economic recovery; it would be nice to get some help from the other side instead of having them work against Wisconsin’s successes. I will continue to work with Governor Walker to pursue a balanced budget and will always stand-up for Wisconsin’s taxpayers while rooting for a Wisconsin recovery, never against one.”

See that, pointing out the problem is “rooting” against our state’s economy, a talking point you'll hear a lot of as the bad news trickles out. How many decades did we hear Republicans telling us how bad Wisconsin was for business? Guess that was a self fulfilling prophesy. Resistance is futile folks. There's more:

Senator Alberta Darling and Representative John Nygren: "Wisconsin does not have a deficit. Once again, Democrats continue to root against Wisconsin's success story. Democrats are using political math to deflect from the poor budgeting decisions they made in the past. Under Democratic leadership Wisconsin had a $3.6 billion deficit, 9.2% unemployment, while more than 133,000 jobs and 27,000 businesses left the state.”

Again, Republicans continue to blame the Great Recession on Democrats, especially Gov. Doyle and Mary Burke, without paying the political consequences for such an outrageous fiction.

Walker moves forward with Bigger Deficit. Says he has a proven track record! Ain't that the truth.

Remember that the deficit Scott Walker inherited was an estimate, and wasn't really that high? 

jsonline: The more than $3 billion projected budget shortfall that Walker inherited as governor represented the gap between the state's expected tax revenues over the next two years and what state agencies were asking to spend over that period. The gap worked out to about 10% of the overall budget in the state's main account.

Well, it looks like Walker is creating his own deficit, which tracks closely to Gov. Doyle shortfall. Bad timing too, since that was Walker’s big talking point in his reelection bid:

The expected shortfall for the next two-year state budget has risen to nearly $1.8 billion, or about half of what it was when Gov. Scott Walker took office in January 2011 … The latest estimates by the Legislature's non-partisan budget office show a gap once again opening in the 2015-'17 budget because of tax cuts enacted by Walker and lawmakers and lagging growth in other state taxes in recent months … jumped by more than $1.1 billion over the previous estimate of a $642 million gap released in May. The projected weakness in the state budget matters to ordinary people because it would make it harder for state leaders to increase spending on priorities such as schools or cut taxes further for state residents.

The GOP bubble will not be Broken: As usual, the casual lack of concern is supposed to make us all feel great:

We were warned in a simple cartoon!

Walker spokeswoman Laurel Patrick downplayed the report, saying the state could see revenues grow in future years and take new steps to control spending. "We have a proven track record of managing the taxpayers' money well.

No, Walker has a dis-proven policy track record now. Are they hallucinating or thinking they can fool voters into thinking the $1.1 billion shortfall is a good thing? Yes…hey, it's a prediction, right?

Rep. Robin Vos: “Once again Democrats are looking for dark clouds on a sunny day. No one can ignore the fact the state is headed in the right direction. Unemployment is down, more jobs are being created and new businesses are opening their doors. The state economy continues to grow stronger under Republican leadership.”

This is what Walker and Vos call “strong,” and “leadership.” Yes there is a whole different standard for Republicans, who are given years to make their magic work, and yet it doesn't, because they need more time.

But Burke, a Democrat and former Trek Bicycle executive, seized on the new projections. "Governor Walker's fiscally irresponsible approach and his failed stewardship of a lagging economy have resulted in a state budget picture that is a mess," she said in a statement. "I have spent my career balancing budgets and insisting on accountability; setting priorities and getting the biggest bang for the buck. Governor Walker has spent money we don't have. In the business world, if a CEO created this big of a financial mess, he would be fired."

Though not as high as when Walker came into office, the memo said that the projected shortfall is one of the biggest since 1997. Those figures were not adjusted for inflation.

Walker borrows more while cutting taxes. What a plan.

Wisconsin Public Radio's Shawn Johnson is doing a three part series: "Walker's Promises: By the Numbers." In this first piece, spending seems to be one of Walker's biggest problems, and growing: 

Walker Veers from Promise Not To 'Spend More Than You Have’: Walker lived up to that in his first budget, according to Todd Berry with the Wisconsin Taxpayers Alliance. But Berry said Walker's second budget is headed in a different direction starting with the next fiscal year. "We're going to spend, it looks like, more than we're going to bring in in revenue, and the reason simply is we have some big tax cuts," Berry said.

The nonpartisan Legislative Fiscal Bureau projects that in year two of this budget, the state will spend $559 million more than it takes in. That number is just the general fund.  To really dig into this promise, people have to look at the transportation budget.

The trouble in Wisconsin is that borrowing keeps going up with no end in sight. Officials with the Fiscal Bureau said total state indebtedness is projected to grow by more than $1 billion under the governor's watch. 

Jon Peacock, who directs the Budget Project at the Wisconsin Council on Children and Families, said continuing this idea is the opposite of what state officials should be doing. "At a time when the economy was doing well and coming out of a recession, that's the perfect time to reduce the amount of bonding, but instead, we've increased it," Peacock said. It's not that people don't know how to fix this, but Walker has shot down proposals to raise taxes or fees to pay for roads. 

The Walker Mess Explained...

Not much I can add to the following:

Paul Fanlund: Under scrutiny, Scott Walker’s fiscal record is a jumble: Walker’s foes seem to let the Republican governor get away with playing the fiscal hero even while he is recreating the “kick-the-can” budget future he complains about, a structural deficit that will likely yield a manufactured “fiscal crisis” after November’s election. (Republicans, of course, adore a good budget crisis because it lubricates attacks on government, including on public education.)

But a deeper look based on interviews with budget experts reveals how little Walker has really accomplished.

Since his January 2011 inauguration, Walker has signed 15 bills into law providing tax breaks to businesses … at least 37 discrete business tax breaks ... ranged from lowering corporate income taxes through credits and deductions, to the creation of nine new sales tax exemptions, to putting more state money into property tax relief, about a third of which goes to commercial, manufacturing and agricultural property.

The cuts ... estimated $740 million in general purpose revenue over this four-year period, an amount that’s expected to grow by at least $130 million during the 2015-17 budget alone, since some are not yet fully phased in. Yet Wisconsin still lags behind most states, including our neighbors, in private-sector jobs created since Walker took office.

I asked experts … Here is what they say: First, several new tax breaks, such as the manufacturing and agriculture credit, don’t have a specific job-creation requirement. Rather, they provide a no-questions-asked benefit to businesses with the mere hope of job creation.

some breaks are geared toward manufacturing activities ... it is not expected to be a significant source of new jobs — now or ever — compared to the tech, service and health care industries,

Part of the problem, one expert tells me, is that in Walker’s zeal to lower taxes whenever there is a state dollar burning a hole in his pocket, he has dribbled out money at intervals and hasn’t taken any long-term perspective on how the tax code really should look.

Walker’s politics precluded Wisconsin from receiving $810 million in federal stimulus money for a high-speed rail line in Wisconsin. The Spanish train company Talgo is currently suing the state for breach of contract. Walker’s politics precluded Wisconsin from receiving $810 million in federal stimulus money for a high-speed rail line in Wisconsin. The Spanish train company Talgo is currently suing the state for breach of contract.
 Wisconsin also turned down millions in federal funds that would have helped pay for those on medical assistance as well as the $38 million available for implementing a state health insurance exchange under the Affordable Care Act.

So, Walker passed on several opportunities for Wisconsin to increase its relative share of federal dollars to increase employment.

Mary Burke's Economic Sanity or Scott Walker's high CEO approval ratings?

Check out the great article in the Wisconsin State Journal showing the impact of Scott Walker's scattershot tax cut policy and tax shift to the middleclass. That's not an editorial opinion, it's shown in the graphs below. But more surprising is the measured and common sense approach finally articulated by candidate Mary Burke. 

Gov. Scott Walker floated a radical and controversial idea for Wisconsin; eliminate the state income tax. So far Walker has cut taxes by nearly $2 billion over his first term, according to the nonpartisan Legislative Fiscal Bureau. Walker’s 48 tax cuts; income tax rate reductions, additional aid to K-12 schools and technical colleges that drives down property taxes, and deductions, exemptions and credits targeted at boosting businesses. Walker … says he will lower the tax burden each year in office … but rejected the possibility of raising the sales tax to make up the lost revenue.

If actual math, business and economic experience replaces Scott Walker’s failed pure ideological theory:

Democratic challenger Mary Burke says major tax reform isn't needed … Walker’s cuts have been based on a premise; lower taxes across the board will attract businesses, create jobs and facilitate further tax rate reductions, that some economists, researchers and Burke dispute.

Best line of the article (first highlight) and best criticism of Walker’s mess:

“Walker does believe in this trickle down. I don’t, and that comes from a business perspective,” Burke said. “I haven’t seen a lot in his plan that indicates how he’s going to grow the economy other than thinking it grows because you reduce taxes.” Burke said she favors more targeted cuts for the middle class and business startups over broad cuts that benefit the wealthy and companies that aren't adding new jobs.

She has called for raising the college tuition income tax deduction from $6,943 to $10,424, pledged to repeal a new private school tuition deduction expected to cost $30 million a year, and said she’s skeptical that the manufacturing and agricultural credit, which will soon cost $128.7 million a year, will create jobs. “Gov. Walker has created loopholes that carve out special deals, which means while some people are paying their fair share, others are not,” Burke said. “I will look at these loopholes and eliminate those that benefit only special interests.”

Click the chart (to enlarge), with 4 different tax change possibilities, and the impact (in red) on the state’s budget. Keep in mind, Walker admitted above that his “no tax” pledge to lobbyist Grover Norquist prevents him from ever raising the sales tax (but he did break that promise on the EITC & Homestead Credit):

Do cuts create jobs? Mike Leachman, director of state research at the liberal-leaning Center on Budget and Policy Priorities said past studies showing states that enacted large income tax cuts in the 1990s and 2000s had a mixed record on economic growth. Several tax-cutting states performed worse than those with higher taxes, and those that performed better were oil producers … cutting income taxes doesn’t spur major economic growth because they’re usually accompanied by reductions in government services. “You’re taking money from the pockets of teachers and other public employees and companies that contract with the government,” he said. “That money also gets out into the economy. On balance, it’s more or less a wash.”

Homestead Credit and Earned Income Tax Credit have eroded. Walker reduced the EITC for families with two or more children and repealed indexing provisions for the Homestead Credit, saving the state $169.6 million during his first term.

Home Sales Drop in Wisconsin...Blame Obama?

Who could miss this headline:

State home sales down 11.6% in April as weak spring market continues

And wouldn't you know it, our in-the-tank for Scott Walker Wisconsin Realtors Association blamed the problem on Obama:

WSJ: ...continuing poor weather and a stagnant national economy helped to keep sales down, the Wisconsin Realtors Association said. 

It's not Scott Walker's own lousy red state Wisconsin economic road map that's to blame? It's Obama. Why not just blame the Capitol protests and the recall election while your at it? 

The Blame Obama Bunch: Who could have predicted that cutting the pay of public workers and outright opposition to raising the minimum wage would decrease consumer demand for homes? 

And with the spread of voucher schools, that have the unintended consequences of watering down and breaking up neighborhoods with highly rated school systems, home buyers are less motivated and home owners are losing one of their biggest selling points:

Sales were down year-over-year in every region of the state in April. The trend of higher home prices and higher interest rates on mortgages also put a rebound in home sales further into the future, at best.

It's the "Blame Obama Bunch" again.