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3/20/2008
Mark Rahmlow: "We're Broke."
From a frustrated Arizona lawmaker: “We’re broke.”
The Arizonan supported a statewide hiring freeze on all government employees - a bill that met smack up against a governor’s veto. Unlike Wisconsin, Arizona’s legislature has been working with their governor for months on the budget shortfall. Like Wisconsin, the legislature is at odds with a governor who prefers borrowing heavily against the future and raiding segregated funds.
Sound familiar?
The Doyle Plan
“Earlier this week, I announced a good, responsible budget repair plan that addresses a shortfall … protecting education, health care, and vital services and not raising taxes,” the guv said last week.
But Doyle’s plan actually leaves a $200 million deficit - and it raises taxes too. Sick people will be paying $125 million to state government through a “hospital tax.” $125 million in state debts would be deferred and. Doyle’s “responsible budget repair plan” steals $290M from the transportation fund.
All this, and neither the governor nor the legislature accounted for:
- the $200 million deficit that will appear when the courts overturn the unconstitutional raid on the Injured Patients and Families Compensation Fund (IPFCF).
- the almost $300M liability that will result if the state loses the Menasha Corp. tax case and
- the $70M the Ho Chunk nation owes the state, but may not ever pay.
Though Doyle’s plan is fiscally irresponsible, his plan does propose specific solutions to the budget shortfall. I’ll give the governor credit for canceling his trip to the United Kingdom, but to keep momentum moving forward, the governor must – very soon – officially request that the Joint Committee on Finance meet as soon as possible to hash out the details.
The Assembly Plan
An Assembly alternative focuses on spending cuts – good – but Speaker Mike Huebsch (R-West Salem) failed to outline the specifics for those cuts. Arizona lawmakers advanced specific bills (e.g., a statewide hiring freeze); Wisconsin’s Assembly representatives deferred those tough choices to a spendthrift governor.
And legislators – you simply must get specific about budget cuts. Eliminating the sick leave perk for state lawmakers and employees would save $6.2 million. Another $11 million would be saved if Senate Democrats sent State Rep. Rich Zipperer’s (R-Pewaukee) earmark transparency bill to Doyle. By rolling the responsibilities of the State Treasurer and Secretary of State into existing agencies, another $3 million annually could be saved.
At least one state lawmaker agrees. State Representative Steve Nass (R-Whitewater):
I don’t trust Governor Doyle to protect the interests of taxpayers. It’s time for all elected officials in Madison to stand up and cut state government spending in real terms.
Promises and political courage
Early in his administration, Doyle made a promise to taxpayers that he would address the structural deficit without gimmicks. He’s absolutely not done that. The 2009 budget will begin with a structural deficit of $2.4B!
Republicans may worry about how voters will react to massive cuts in state government. For any legislator looking for political cover this fall it’s got to be as simple as explaining - “we’re broke.”
“There’s a solution to the spending crisis. That solution is so simple only a liberal could miss it. We just have to spend less. But big spending is as seductive as anabolic steroids, and it’s time the big spenders were disqualified.” President Ronald Reagan, Chicago, 1988.
Rahmlow is a former field director for Tim Michels 2004 U.S. Senate campaign.
COMMENTS
Let's stop quoting Reagan when discussing spending. As we all know he was responsible for the second worst run up in the deficit (after the current Occupant). Reagan talked a good game but like the writer accuses Doyle of, Reagan did not practice what he preached. Republicans may have a monopoly on the rhetoric but national history has shown that the difference between "tax and spend liberal" and a Republican is that the Republican spends but doesn't tax. I submit the tax and spend "liberals" left this country in better shape. On the State level I agree with much of what the writer said. But let's remember that for several years this state was blessed with a Republican controlled Senate and Assembly. And what did they do with all that power? Passed anti gay constitutional amendment, proposed conceal carry and other fiscally irrelevant but socially prominent legislation. A pox on all their houses if they can't get their act together.
Oh my gosh, I'm planning on using the same Reagan quote tomorrow. Better rewrite... Nevertheless, I'm with you on the rest of your thoughts. JE
dave allen (Thu Mar 20 06:29:50 2008)
Jo:
This hits the nail on the head again but as I have said before, nothing will change unless we hold our legislators accountable. The voters should be asking any candidate for the legislature this fall what specifically they intend to cut to balance the budget. I do not want to hear just generalities on the fact that we need to reduce spending without borrowing or transferring funds. The voters should be demanding specifics so they can decide who to vote for in the fall.
I would suggest some well covered debates for those races that will be contested. Unless voters get interested and engaged, we will be seeing these comments from you in blogs for years to come.
Meaningful change only comes about when the voters are educated on the issues and are willing to act. Jo, you have provided the education and format, now the voters need to act. Hopefully we will see that in the upcoming fall elections.
Mike Thomas (Thu Mar 20 10:30:09 2008)
When President Reagan was sworn into office the national debt was an "intolerable" 934 billion dollars. As of yesterday it is 9,389 billion dollars. 43% of the increase occurred during the current administration and the current fiscal year is looking like it will be among the worst ever for increases in the total outstanding debt.
Mark L. Harris (Thu Mar 20 10:45:23 2008)
Just a note on the hospital tax.
The hospital tax that 'sick people' are paying now is to insurance companies.
I'm going to see if I can fit in here a direct link to a brief article on how the right wing has misused the term 'socialized medicine' ...
Can't get it at the moment but it's in the current issue if Progressive Populist (writing on March 20th.)
You see, in there the propagandistic phrase 'socialized medicine' is shown for what it is-- a lie. What remains is the payer. When payment for health care is taken out of the hands of the insurance companies, the payer becomes the government-- the government does not become the health care provider.
This simple distinction is so often obfuscated by pundits and bloggers that the function of insurance companies is conflated with care rather than fees for payment.
I do not understand much about the hospital tax. What I do understand is it's time for insurance companies to go and their surcharges for payment be eliminated for good.
Lon Ponschock (Thu Mar 20 12:55:41 2008)
Dave, I always enjoy your comments. I almost left out the Reagan quote because it detracts from the larger point. The point is that Assembly Republicans were right to propose spending cuts. Huebsch was wrong for deferring to the governor on where the cuts would occur.
We can debate Reaganomics another time. It's a discussion I would enjoy having with you. For the record Reagan tried to cut government (ala the Grace Commission), but I digress.
The point of the entire article is best summed up by saying "lets get specific about the cuts" ... other states are doing it, there's no reason Wisconsin can't.
Mark Rahmlow (Thu Mar 20 16:17:19 2008)
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