What budget woes in Wisconsin? State to end the year with a balance of $121.4 million
Wisconsin’s new Republican governor has framed his assault on public worker’s collective bargaining rights as a needed measure of fiscal austerity during tough times.
The reality is radically different. Unlike true austerity measures — service rollbacks, furloughs, and other temporary measures that cause pain but save money — rolling back worker’s bargaining rights by itself saves almost nothing on its own. But Walker’s doing it anyhow, to knock down a barrier and allow him to cut state employee benefits immediately.
Furthermore, this broadside comes less than a month after the state’s fiscal bureau — the Wisconsin equivalent of the Congressional Budget Office — concluded that Wisconsin isn’t even in need of austerity measures, and could conclude the fiscal year with a surplus. In fact, they say that the current budget shortfall is a direct result of tax cut policies Walker enacted in his first days in office.
“Walker was not forced into a budget repair bill by circumstances beyond he control,” says Jack Norman, research director at the Institute for Wisconsin Future — a public interest think tank. “He wanted a budget repair bill and forced it by pushing through tax cuts… so he could rush through these other changes.”
“The state of Wisconsin has not reached the point at which austerity measures are needed,” Norman adds.
You can read the fiscal bureaus report here (PDF). It holds that “more than half” of the new shortfall comes from three of Walker’s initiatives:
•$25 million for an economic development fund for job creation, which still holds $73 million because of anemic job growth.
•$48 million for private health savings accounts — a perennial Republican favorite.
•$67 million for a tax incentive plan that benefits employers, but at levels too low to spur hiring.
In essence, public workers are being asked to pick up the tab for this agenda. “The provisions in his bill do two things simultaneously,” Norman says. “They remove bargaining rights, and having accomplished that, make changes in the benefit packages.” That’s how Walker’s plan saves money. And when it’s all said and done, these workers will have lost their bargaining rights going forward in perpetuity.
