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New state budget: ‘Historic tax relief’ or financial risk?

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New state budget: ‘Historic tax relief’ or financial risk?
River Falls Wisconsin 2815 Prairie Drive / P.O. Box 25 54022

Local lawmakers’ response to the Wisconsin Legislature’s adoption of a new biennial budget seems subdued with the area’s lone Democratic representative hoping that the governor will veto parts.


On a vote of 55-42, the Assembly passed the budget in short order last Wednesday, June 19, after Democrats decided not to offer any amendments or prolong debate. Minority Leader Peter Barca was quoted as saying the spending plan is so bad there was no hope of fixing it.

After a 12-hour debate, senators voted 17-16 early Friday morning, June 21, to approve the same version of the budget. Majority Republicans struck down a number of Democratic amendments and did not consider others.

The Legislature’s budget, which now goes to Gov. Scott Walker who has line-item veto power, would cut income taxes for all tax filers by $650 million over two years, expand statewide private school vouchers available now only in Milwaukee and Racine, and tighten income eligibility under Medicare, diverting nearly 90,000 people into federally subsidized exchanges to buy insurance.

The budget approved by the Legislature also freezes tuition at University of Wisconsin campuses for two years, allows the sale of public properties, requires DNA to be collected upon arrest for a felony or conviction of any crime, and allows bail bondsmen to operate in the state.

Never 100% perfect

“No budget bill is or ever has been 100% perfect,” said Rep. Warren Petryk (R-Eleva). “Unfortunately, this nearly 1,500 page piece of legislation contains some items that I do not agree with, and a debate in the Assembly on these issues would have been welcomed.”

But, said Petryk, after weighing “the good and the not quite as good,” he felt the budget’s positive points outweigh the negative.

Sen. Kathleen Vinehout (D-Alma) called the document “The Eat Dessert First Budget.”

She said the tax cut for about 75% of filers -- which would save a person making $30,000 about $50 a year and someone making over $300,000 about $1,500 --eliminates about $600 million of state revenue.

“Because spending is not reduced -- this budget spends $4 billion more than the last -- a half a billion dollar structural deficit is created down the road,” claimed Vinehout.

She said budget writers built several hundred million in new tax collections, but a recent forecast by the Philadelphia Federal Reserve shows Wisconsin’s economy contracting over the next six months. She said the budget increases the state’s debt and doesn’t put away enough money in case of another economic downturn.

Public money for private schools

Vinehout said a last-minute amendment would allow private for-profit schools to set up satellite schools across the state without the previous enrollment caps. She worried that the voucher schools would divert money from public schools.

“Public money for private schools has not proven to be an effective use of taxpayer dollars,” said Vinehout. “The over 20-year-old program should be reevaluated with the same rigor applied to our public schools.”

She urged the governor to veto budget provisions that she said “allow taxpayer-funded ‘franchise’ private schools to expand statewide without limits.”

Petryk agreed that expansion of school choice should have been debated separately instead of being included in the budget.

“However,” he said, “with only one vote to cast, I believe that the positive in this budget far outweighs the negative.”

“I think the budget is very good, a remarkable turnaround from two years ago where we had the huge $3.6 billion budget deficit,” said Rep. Dean Knudson (R-Hudson). “With the economy gradually improving, our revenues were up and we actually had a surplus to deal with this time.”

He added, “I think the best parts of this budget are the protection of the taxpayers, the way it’s going to help us improve our economy, foster job growth. Property taxpayers will see continued control there -- little or no increase. Income taxpayers in all brackets will see a decrease as we simplified the code, eliminated loopholes and credit deductions and instead lowered all the tax rates.”

Knudson, Petryk and Sen. Sheila Harsdorf (R-River Falls) also praised the additional funding for K-12 education.

‘Key investments'

“Even as there are inevitably provisions of any budget bill that I or other legislators may not support, this budget bill makes key investments while allowing taxpayers to keep more of their hard-earned money,” said Harsdorf.

She said she worked with colleagues to provide more funding for public K-12 schools and encourage job creation by targeting the skills gap and boosting economic development initiatives.

“I am also pleased that we are able to provide historic tax relief to taxpayers and hold the line on property taxes,” said Harsdorf. “We also advanced important improvements to public safety and victim services in the budget, including enhanced DNA collection from those arrested on felony charges.”

There are very few things he doesn’t like in the budget, but one of them is the collection of DNA when a suspect is arrested, said Knudson.

For the complete story, see the June 27 print edition of the River Falls Journal.

Judy Wiff
Judy Wiff has been regional editor for RiverTown’s Wisconsin newspapers since 1996. She holds a bachelor’s degree in journalism and sociology from UW-River Falls. She has worked as a reporter for several weekly newspapers in Wisconsin.
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