Walker gins up ‘crisis’ to reward cronies
Cap Times editorial | Posted: Wednesday, February 16, 2011 7:45 am
Wisconsin needs to be fiscally responsible.
There is no question that these are tough times, and they may require tough choices.
But Gov. Scott Walker is not making tough choices. He is making political choices, and they are designed not to balance budgets but to improve his political position and that of his party.
It is for this reason that the governor claims Wisconsin is in such deep financial trouble that Wisconsinites should view this as a crisis moment.
In fact, like just about every other state in the country, Wisconsin is managing in a weak economy. The difference is that Wisconsin is managing better -- or at least it had been managing better until Walker took over. Despite shortfalls in revenue following the economic downturn that hit its peak with the Bush-era stock market collapse, the state has balanced budgets, maintained basic services and high-quality schools, and kept employment and business development steadier than the rest of the country. It has managed so well, in fact, that the nonpartisan Legislative Fiscal Bureau recently released a memo detailing how the state will end the 2009-2011 budget biennium with a budget surplus.
In its Jan. 31 memo to legislators on the condition of the state’s budget, the Fiscal Bureau determined that the state will end the year with a balance of $121.4 million.
To the extent that there is an imbalance -- Walker claims there is a $137 million deficit -- it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January. If the Legislature were simply to rescind Walker’s new spending schemes -- or delay their implementation until they are offset by fresh revenues -- the “crisis” would not exist.
The Fiscal Bureau memo -- which readers can access at http://legis.wisconsin.gov/lfb/Misc/2011_01_31Vos&Darling.pdf -- makes it clear that Walker did not inherit a budget that required a repair bill.
The facts are not debatable.
Because of the painful choices made by the previous Legislature, Wisconsin is in better shape fiscally than most states.
Wisconsin has lower unemployment than most states.
Wisconsin has better prospects for maintaining great schools, great public services and a great quality of life than most states, even in turbulent economic times.
Unfortunately, Walker has a political agenda that relies on the fantasy that Wisconsin is teetering on the brink of bankruptcy.
Walker is not interested in balanced budgets, efficient government or meaningful job creation.
Walker is interested in gaming the system to benefit his political allies and campaign contributors.
To achieve that end, he has proposed a $137 million budget “repair” bill that he intends to use as a vehicle to:
1. Undermine the long-established collective bargaining rights of public employee unions, which have for 80 years been the strongest advocates for programs that serve the great mass of Wisconsinites, as opposed to wealthy elites and corporate special interests. As Racine’s Democratic state Rep. Cory Mason says, the governor’s bill is designed not with the purpose of getting the state’s finances in order but as “an assault on Wisconsin’s working families and political payback against unions who didn’t support Gov. Walker.”
2. Pay for schemes that redirect state tax dollars to wealthy individuals and corporate interests that have been sources of campaign funding for Walker’s fellow Republicans and special-interest campaigns on their behalf. As Madison’s Democratic state Rep. Brett Hulsey notes, the governor and legislators aligned with him have over the past month given away special-interest favors to every lobby group that came asking, creating zero jobs in the process “but increasing the deficit by more than $100 million.”
Actually, Hulsey’s being conservative in his estimate of how much money Walker and his allies have misappropriated for political purposes.
One Wisconsin Now, the progressive watchdog group that has provided the closest monitoring of Walker’s budgetary gamesmanship, explains:
“Since his inauguration in early January, Walker has approved $140 million in new special-interest spending that includes:
“• $25 million for an economic development fund for job creation that still has $73 million due to a lack of job creation. Walker is creating a $25 million hole which will not create or retain jobs.
“• $48 million for private health savings accounts, which primarily benefit the wealthy. A study from the federal Governmental Accountability Office showed the average adjusted gross income of HSA participants was $139,000 and nearly half of HSA participants reported withdrawing nothing from their HSA, evidence that it is serving as a tax shelter for wealthy participants.
“• $67 million for a tax shift plan, so ill-conceived that at best the benefit provided to ‘job creators’ would be less than a dollar a day per new job, and may be as little as 30 cents a day.”
State Rep. Mark Pocan, D-Madison, sums up this scheming accurately when he says: “In one fell swoop, Gov. Walker is trying to institute a sweeping radical and dangerous notion that will return Wisconsin to the days when land barons and railroad tycoons controlled the political elites in Madison.”
The bottom line is evident to anyone who cares to pay attention not to the spin but to the budget figures: Walker is manufacturing a fiscal “crisis” in order to achieve political goals.
Walker is not addressing a fiscal crisis.
He is not serving Wisconsin.
He is serving his own interest and those of the lobbyists who represent his campaign contributors.
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