Thursday, November 13, 2008

IDEAS ON THE STATE'S $5 BILLION DEFICIT

So, we have a $5 billion deficit staring us in the face in Wisconsin. And, so far, the only committment from the Governor is to not raise taxes other than the hospital tax and a tax on oil companies. He would not rule out the possible increase of the state sales or income tax. The Governor has presented "balanced" budgets since being sworn in five years ago, but, as the Milwaukee Journal-Sentinel pointed out, "that's because Republicans and Democrats have solved each budget with one-time fixes, relying on accounting tricks, increased borrowing and transfers from the state's transportation fund." WE MUST stop these tricks, borrowings and transfers (raids). Here are some ideas I would throw out there:

1 - Elimination of the state patrol. Controversial, yes, but do we really need a state patrol, when most cities, like Ripon, have their own police department, and we also have a county sheriff's department as well
2 - Stop buying land, and start selling some state land. We have been on a land purchasing spree in recent years, and it simply reduces the amount of taxable property. If you want people to conserve the land privately, re-assess them as "environmentally-protected" land or something of that nature
3 - Reduce or eliminate state shared revenue. Leave it up to the local units of government to determine their own tax rates.
4 - Merge the technical college and 2-year university system into one unit of education, and, perhaps, roll it all into the state university system.
5 - Revise the state retirement system, so that contributions are guaranteed to be paid out at retirement, not the payouts guaranteed. I noticed in the most recent story about the reduction in the state retirement fund that the taxpayer will be covering the difference. (Milwaukee Journal-Sentinel - November 2 - Taxpayers are also expected to take a hit, as the Department of Employee Trust Funds is warning municipalities, counties, school boards and the state that they will have to boost contributions to the pension fund that covers approximately 540,000 active employees and retirees...If the city or county pension funds ever did go sour, local taxpayers would be required by state law to make good on retirees' pension checks, officials said.) Why? I would love to have the "taxpayer" cover the shortfalls in my 401-K, and my wife's. Wouldn't you?
6 - STOP the raiding of segregated funds. If I am paying a gas tax, I expect it be used on roads.
7 - Change the bid process. A number of years ago, the Journal-Sentinel did a study of state road projects, showing that the final tabs ended up being considerably higher than the initial bid prices. Who pays the difference? You and I. I would propose that any company which secures a road project bid, and delivers a final product that is more than 10 percent over the intial bid, will be required to cover half of the overrun, and be banned from bidding on any state transportation project for one year
8 - Review all property tax exemptions every five years. These little "gifts" do add up after awhile, and the Legislature should be required to re-authorize them every five years, with a full fiscal analysis of what the exemptions do to local and state government bottom lines. Start with 20 percent of the exemptions the first year, and go from there.
9 - Adopt a "pay-go" system. ANY increase in spending in one area must be balanced by a cut in another portion of the budget, or, if a person has the desire, a tax increase.

These are just "ideas", but I would hope we have some discussion in Madison...non-partisan, substantive and respectful of the people paying the bills.