Wisconsin: Budget Myths Abound [View all]

[Scuba]

http://www.uppitywis.org/blogarticle/budget-myths-abound

Myth number one says the state spending is less and implies the size of government is smaller. But, according to numbers released by the nonpartisan Wisconsin Taxpayers Alliance, the 2013-15 budget spends $4 billion more than the previous. In fact, state spending is greater than it has ever been in Wisconsin’s history.

The new spending goes to a number of expensive new programs. Half of the $4 billion goes to health spending. But for first time in many years there are fewer people covered by state health programs. Nearly 100,000 people are expected to lose state health coverage by January. Not taking federal money for Medicaid expansion left the state budget and citizenry in worse shape.

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Myth number two says this budget took a deficit and turned it into a surplus. The opposite is true. A recent Legislative Fiscal Bureau (LFB) report tells the story. The 2013-15 budget began with a small surplus. Tax collections are improved. Wisconsin is emerging from the recession. The state had a bit more money to spend.

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The third myth says the state eliminated the debt. This is false. In fact, state debt reaches record levels in the 2013-15 budget. Why? The budget increases borrowing by more than $2 billion. Almost half of this borrowing goes to transportation spending. In addition, debt payments not made in the last legislative session catch up to lawmakers.