Tuesday, May 05, 2009

State Revenue Cliff-Diving

Not a surprise to anyone who's been awake for the news broadcasts.

State government's $5 billion budget deficit is growing, although no official on Monday would estimate the size of the new shortfall

...Ed Huck, director of the Alliance of Cities, told officials representing Wisconsin's cities that there may be a new "$1 billion hole" in the 2009-'11 budget that Democratic legislators and Doyle hope to approve by July 1.

State government may face a budget deficit "much more dire than had been thought even a week or two ago," Huck warned in an e-mail. "We expect the bad news to be dropped on many of the city leaders who have been invited to the governor's mansion on Wednesday,

The solution?

NOT cutting State spending on the Doyle Imperial Staff, Court, and Jesters.


Cutting "shared revenue," instead--up to 5% on this go-around alone.

"Shared revenue" is the system whereby State taxpayers send money from their homes in, say, Eagle, to Madistan. Then Madistan bureau-weenies can take 25% off the top before they send even LESS than the 75% remaining back to Eagle.

See, the City of Milwaukee needs a lot more money than any City pol would like to extort--so the rest of the State "contributes" shared-revenues.

Look for an increase in prop-tax for next year, right next to your increase in State tax payments.

Sure don't want Madistan bureau-weenies to go jobless.


Headless Blogger said...

There's a chance this may play out differently than you think. Because this is a cashflow problem, there may be problems paying bills and meeting payrolls before the revenue sharing changes take affect. I also expect that it will become very difficult for Wisconsin to borrow more money to pay existing bills.

If so, the first pigs stuck by Doyle's spending will be state employees (pause while I soak in the Schadenfreude). Watch for cuts in summer hiring and forced unpaid time off of employees.

The reduction in shared revenue will also hit the municipalities before it rolls down to the taxpayers.

This may cause these Doyle supporters to question Jim's big new spending plans in the face of them receiving less money.

Headless Blogger said...

Oh noooooooooo!

I'm beginning to think just like Jim Doyle - http://www.jsonline.com/news/wisconsin/44533322.html