Notes from the West Wing
By
State Representative Garey Bies
Now is Not the Time
Hello from the West Wing of the State Capitol! The state legislature has wasted no time switching into high gear after the brief holiday break. For this edition of Notes from the West Wing, I’d like to talk just a bit about state spending.
I am sure that by now, you have all heard about the increase in tax revenues that resulted from our efforts to cut taxes and stimulate Wisconsin’s economy. It is good news, no doubt. But rather than jump for joy and encourage a state spending spree, I would advise that now is the time to step back and address the state’s woeful fiscal condition.
First of all, I must confess, that as a politician, I can think of any number of state programs that I would like to increase funding for, or even funding new state programs. However, if you’ll remember, with his item vetoes, the Governor left us a budget with a $2 billion structural deficit, accounting tricks capable only by government allowed for the appearance of a “balanced” budget. Then of course, as I talked about in a previous Notes from the West Wing, there was the little mistake the Administration made concerning the General Fund which they tried to cover up with a (back-dated) transfer from the Medical Assistance fund. Given the condition of Wisconsin’s financial situation, I think the increase in state revenues should not be used for any new spending.
In this month’s State of the State address by the Governor, he announced several new initiatives. Fine, the State of the State is for the Governor to address the people, and while I concede that the address is an opportunity for the Governor to push his agenda and even bolster his campaign, I take exception to the Governor’s pitching program after program that will require millions and millions of new state dollars. Here was an opportunity for the Governor to build on the economic gains realized from policies to which we had to drag him, kicking and screaming (tax cuts, job creation).
Wisconsin’s economy has turned the corner. We are adding jobs, household income is growing and state productivity is strong and improving. Now is not the time to cash out. The state has debts to pay before any new commitments are made. It is my hope that we can continue our work to stimulate our economy. By now, I hope that everyone realizes why cutting taxes is so important. In the legislature we have worked hard to cut taxes and the result has been increased tax revenues. This cause and effect is nothing new, it has played out the same way, all across the nation since the industrialized revolution and before.
Wisconsin’s strengthening economy must be encouraged. Both Republicans and Democrats may be taking credit for this course, but ultimately, the important thing is that the state’s situation is improving. And why not work together? I, and Senator Lasee were happy to work with the Governor’s Administration to provide assistance for the Sturgeon Bay Shipyards. That assistance is going to provide a lot of benefit not just to the First Assembly District, but to all of Northeast Wisconsin. Should opportunities to provide this kind of benefit arise again, I will be happy to work with the Administration again. But let’s not take our new tax revenue and blow it. Let’s use it to improve our economy even further.
That’s all for this update from Madison. As always, I can be reached by e-mail at Rep.Bies@legis.state.wi.us or by telephone, toll-free at 1-888-482-0001. And don’t forget, I’m now on the web at http://www.legis.state.wi.us/assembly/asm01/news/.