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Issue Position: Our Blueprint for Prosperity

Issue Position

Date: Jan. 1, 2014
Issues: Taxes Economy and Fiscal Government Budget and Spending

At the beginning of 2014 it was announced that Wisconsin had a $912 million budget surplus. Some have said this is a projection only and that we must not be hasty in returning the excess funds back to the taxpayers. Others believe that sending the money back to the taxpayers will put us in a bad fiscal position going into the next budget. I have to say that I can't agree with either of those positions. Let me tell you why.

■The portion of the equation that Fiscal Bureau estimates don't take into account is potential growth. In the last twenty years (with two recessions) our average rate of growth was still near 3%. With just 1.8% of growth over the next year, any upcoming budget shortfall will be wiped out and another potential surplus will exist similar to Oct 2013 and Jan 2014 projections in which we returned $100 Million and $500 Million respectively to property tax payers.

■Our sales tax collections are up double digit percentages over the last year. That is a strong sign of growth especially when looked at in connection with the unemployment rate around 6% and new home building rising as well.

■Overall, since the start of this session the Republican majority has passed close to $2 Billion in overall tax relief. This current surplus isn't for just tax relief we also made strong investments in worker training and education and made another deposit into the rainy day fund.

■The rainy day fund balance is now near $400 million. Even at its highest balance in the previous 10 years, it was only a fraction of what is in there now. Even if the critics are correct and we hit a rough patch, for the first time ever we have sufficient reserves to cover the downturn.

■Those who are saying we should be more fiscally responsible and keep the money in Madison, are the same people who created a $3.6 billion deficit while creating unsustainable government program growth along the way; the trust just isn't there anymore. It's your money, you should decide what to do with it.


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