HOW NOT TO BALANCE THE BUDGET

Governor Doyle revealed Wednesday his proposal to balance the current budget, which has a projected deficit of $600 million. Keep in mind that the next budget cycle begins on July 1st, so the time to fix this current deficit is running out. The sense of urgency is even more acute as the possibility of a $6 BILLION deficit looms for the next budget. Needless to say, the proposals from our governor show he continues to believe he can fool the general public.

Our governor has run for election on the platform of not raising taxes to balance the budget. First, he has raised taxes. You can call them user fees, vehicle registration fees, cigarette or "sin" taxes, but the bottom line is that he has raised taxes. Second, he has not balanced the budget. Our legislature seems to be going through these budget "fix"meetings every two years. Third, the lack of a reserve or "rainy day" fund continues to come back and haunt us. We have less money in our reserve funds than almost any other state in the Union.

So, what is the current proposal. Grab your wallets and read on:

* Changes to tax laws that would result in more online retailers charging sales taxes - for both tangible products and Internet downloads of songs, video games and e-books - This is a TAX INCREASE. We can all admit we do not pay sales tax on Internet purchases, so there is the idea that this is only a way of making the tax system fairer. I can think of a hundred other ways to do it than taking more money out of people's pockets. AND the Supreme Court has ruled that online retailers do not have to collect the taxes
* A tax on hospital revenues, expected to bring an additional $900 million in federal funds over three years - TAX INCREASE. Doyle has been after this for several years, and is now using the looming deficit to get it passed. This will make health care all that more difficult to pay for, and let's be honest. The $900 million from the federal government is more borrowed money.
* $125 million in cuts to state spending by authorizing the Department of Administration secretary to lapse or transfer $125 million to the general fund, including $500,000 from the Legislature, between fiscal years 2008-09 and 2010-11 - According to the Wisconsin Policy Research Institute, these cuts are not really cuts. "This provision merely authorizes DOA Secretary Mike Morgan to pull funds out of other non-general fund pots of money to plug the budget hole. For instance, when Doyle and the Legislature pulled $1.1 billion out of the transportation fund and dumped it into the general fund, this was a “transfer.” It also has contributed to the $5.7 billion deficit we are dealing with now. Since 2001, state government has use $2.4 billion of these lapses and transfers - and they only serve to allow government to increase spending."
* $3.6 million for worker training programs. - Wait a minute, I thought we had a DEFICIT, so why are we increasing spending
* Increased oversight of child care programs, the administration of which was called into question in the recent Milwaukee Journal Sentinel investigation "Cashing in on Kids." - More increased spending.
* Increased regulations to protect homeowners and tenants during foreclosure proceedings - This is a policy issue, not budgetary. Unfortunately, this is common practice in Madison. I admit the idea is a good one, but make it into a separate bill to be debated separate of the budget.
* According to the Milwaukee Journal-Sentinel, the proposal "would also rewrite the corporate income tax code in a way that would cost businesses $187.3 million - or 13% - more over the next two years. In all, the corporate income taxes will total $1.42 billion over the same period, according to the Legislative Fiscal Bureau." - Just what Wisconsin needs. More corporate taxes in an economic downturn, and one more reason for a company to decide against relocating to or expanding in Wisconsin.

According to a poll from the group, Americans for Prosperity, 65 percent of those polled want to see the state cut spending versus the 15 percent that want us to take federal money to balance our budget. When they were asked who was responsible for the budget crisis, the majority of respondents said it was our Governor Doyle, and 43 percent gave him a negative job performance review. It was the highest unfavorable rating among public officials listed in the poll. Based on his budget "repair" proposal, that negative rating should be on the rise.