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State deficit figures disputed(The Leader-Telegram (Eau Claire, Wis.) Via Acquire Media NewsEdge) Nov. 22--Although state officials reported Thursday that Wisconsin's budget shortfall could reach a record $5.4 billion in 2011, the president of the Wisconsin Taxpayers Alliance said that figure is misleading. "A little bit of fear is not necessarily a bad thing if you're trying to run the show," Todd Berry said during a presentation Friday morning at the Eau Claire Area Chamber of Commerce's monthly Eggs and Issues breakfast at the chamber office. "(The $5.4 billion figure) presumes spending requests will be OK'd next year," he said. "And it's difficult to predict revenue." Berry said a more accurate number would "in the neighborhood" of $2 billion, figuring there will be some spending cuts and tax increases. Berry also pointed out several troubling statistics for Wisconsin: - The state's per-capita income trails the national average by 6.6 percent, and Wisconsin's job growth is falling further behind the national average. - Average wages in Wisconsin are 14.4 percent below the U.S. average. - Wisconsin's debt ballooned from $4 billion in 2002 to $9 billion in 2007. - State general fund tax revenues are projected to fall in the current and next fiscal years. On a positive note, Berry said tax revenue estimates are not as drastic as some reports have indicated and that "the economy is not collapsing in terms of GDP (gross domestic product)." Berry said the recent budget woes in Madison are a result of several factors, including increased state expenditures during an economic boom in the 1990s and a reliance on state borrowing. In regard to a possible hospital tax, Berry said health care facilities with a significant number of Medicaid patients would benefit and others would not. Berry fears Gov. Jim Doyle's proposal to put a state tax on oil companies' profits would be passed on to consumers despite efforts Doyle said he would put in place to prevent that from happening. As for the state's growing wage gap, Berry said although creating and retaining high-paying jobs (doctors, lawyers, engineers) is important, it is not the only priority. "Remember that this is the No. 2 manufacturing state in this country," he said. "Making things is not a bad thing ... and I don't think that should be diminished." Berry offered mixed reactions to the possibility of lifting levy or revenue limits or doing away with the state-imposed qualified economic offer, which limits public school teachers' annual pay and benefit increases to 3.8 percent. Berry said one possibility would be a return to the policy of the early 1980s, when local governments and unions bargained without state involvement. The overall message Berry provided was that the current economy is not as bad off as it was during previous downturns. "Our income and property taxes are high, but we have no toll roads and relatively low tuition," he said. "Do we really need the permanent pain of tax hikes or spending cuts? Maybe not." To see more of The Leader-Telegram or to subscribe to the newspaper, go to http://www.leadertelegram.com. Copyright (c) 2008, The Leader-Telegram, Eau Claire, Wis. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |