Recent News

A Hidden Tax Hike for Seniors. Working families and the elderly will be hit with a $14 million property tax increase over the next two years, and see their taxes continue to rise in later years, thanks to the Legislature’s decision to effectively freeze the Homestead Credit for modest-income homeowners and renters (February 1, 2012). See WBP press release.

Tables for Annual, Monthly and Hourly Earnings at Various Percentages of the Poverty Level (January 2012).

Falling Support for Schools Threatens Wisconsin’s Economic Future. Massive reductions in state and local support for education could inflict severe damage to Wisconsin’s public schools. Nearly $2 billion in cuts to schools over the next two years have left students with fewer academic opportunities and resulted in job loss (January 9, 2012).

Policy Changes Affecting Working Families in 2012. This paper provides a two-page synopsis of delayed budget cuts and policy changes that will adversely affect Wisconsin’s working families in 2012 (January 9, 2012).

Wisconsin Taxes as a Share of Income at a 15-Year Low. This paper analyzes trends in state and local taxes and spending, based on recently released Census Bureau data for 2009 (November 17, 2011). 

What’s Passed Is Prologue: Looking Ahead to 2013-15; Lawmakers Shouldn’t Count on a Significant Balance in the Next Budget. This issue brief examines the assumptions underlying the projections that Wisconsin’s budget will be in the black in 2013-15, and points to political and economic why lawmakers should not start counting on a surplus (September 12, 2011).  

New Census Data Confirm Wisconsin Has a Lean Public Sector. This two-page issue brief shows that Wisconsin has 5.9 percent fewer state and local government employees per capita than the national average, ranking 39th among the states (September 7, 2011).

On the Path To Becoming a ‘C’ Student in Education - Once a National Leader, Wisconsin Slips Toward Average. This two-page paper analyzes recent trends in education. Over the last few years in Wisconsin, growth in support for classroom learning has not kept up with the national average, state support for schools has declined, and student/teacher ratios have increased. The massive cuts to schools in the 2011-13 budget will likely exacerbate these troubling trends (August 30, 2011). Read WBP press release.

WCCF Series Examines Impact of Budget on Kids and Families. The series, “31 Ways in 31 Days,” highlights different ways children and families will be affected by the budget, and begins the process of rebalancing Wisconsin’s priorities. Read WCCF press release and “31 Ways in 31 Days” on the WCCF blog (August 2, 2011) .

Effects of the Biennial Budget and Budget Repair Bills for Working Families – This two-page paper summarizes some of the ways that the proposed 2011-13 budget bill and the newly enacted budget repair bill will affect working families, particularly low-wage workers.  It examines the cuts to the Earned Income Tax Credit and Homestead Tax Credit, likely effects on health care programs, potential cuts to child care subsidies, diminished opportunities for education and training, and cuts to transit programs
(Updated July 14, 2011).

Comparative Analysis of 2011-13 Biennial Budget Bill. This document is a summary of the 2011-13 biennial budget bill, focusing primarily on issues relating to children and families (Updated July 6, 2011).

Fact Sheet on Unemployment Compensation and Extended Benefits in Wisconsin (July 7, 2011, Updated August 2, 2011).

Increasing Share of Scarce Resources Spent on Corrections (July 6, 2011).

Extended Unemployment Benefits Can Provide a Critical Boost for Wisconsin’s Jobless Workers and the State’s Economy. This short paper explains the reasons why Wisconsin policymakers should accept federal funding, estimated at $89 million this year, to extend unemployment insurance benefits for an additional 13 weeks  (June 23, 2011).  

The Budget’s Real-Life Impact on Wisconsin Families. It’s clear that this state budget hits the state’s most vulnerable families the hardest. This analysis shows how the budget would affect individual working-class families (June 23, 2011).

The Budget’s Real-Life Effects on Workers in the Public Sector. Changes in the state budget and budget repair legislation will make it harder for low-income workers in the public sector to make ends meet. This two-page brief examines these changes and their impact on the families of people employed in public sector jobs. See WCCF press release (June 22, 2011).

Senators Must Resolve Conflict between Act 10 and JFC Budget: Will Public Have Input into Future Medicaid Policy Decisions? – Both the budget bill and budget repair bill contain similar provisions transferring Medicaid policy making authority to the Dept. of Health Services.  This one-page paper compares those parts of the two bills, particularly the difference regarding whether public hearings will be required before DHS makes policy changes that supersede state statutes (June 16, 2011).   

Wisconsin Values Budget. WCCF and partner organizations have unveiled an alternative budget approach that better reflects the values and priorities of the people of Wisconsin. This document outlines this better, more balanced approach to the state budget (May 25, 2011). Also, view the one-page summary of this paper.

Wisconsin Has Nation's Highest Ratio of Manufacturing Jobs to Government Jobs. This Wisconsin Budget Project brief examines how Wisconsin compares to other states in the ratio of manufacturing jobs to government jobs. Our analysis found that no other state had a higher ratio of manufacturing jobs to government jobs in 2009 than Wisconsin. This brief is an updated version of a July 2010 brief on the same topic (May 25, 2011).

Decrease in Tax Revenue Contributed to State Fiscal Difficulties. This two-page paper explains that curbing spending will need to be part of the solution to the budget deficit, but policymakers should not overlook the fact that a significant decrease in state tax revenue was a major contributor to the state’s budget gap (Updated May 11, 2011).

The Erosion of the Homestead Tax Credit. This two-page brief analyzes the effects of not adjusting the credit for inflation between 1990 until 2010. For many years, the Homestead Credit was the only significant part of the state tax code that wasn’t annually indexed for inflation. That was remedied by the last biennial budget bill, but Governor Walker’s proposed budget would repeal indexing (May 2011).

Wisconsin’s Fiscal Challenges and Strengths: How Do We Compare? News coverage gives the impression that the Wisconsin fiscal condition is dire. It’s true that lawmakers are facing a very challenging budget, but Wisconsin has substantial fiscal resources on which to draw. This two-page issue brief reviews the facts relating to the size of Wisconsin’s deficit and how we compare to states in other budget-related areas (April 2011)

Wisconsin State and Local Government Employment Levels – This issue brief analyzes new Census Bureau data on public sector employment in Wisconsin in 2009, as well as more current Bureau of Labor Statistics data on government employment. Our analysis found that Wisconsin has 4.4 percent fewer state and local government employees per capita in 2009 than the national average, ranking 38th (April 20, 2011).

WCCF Webcast on State Budget Issues. The Wisconsin Council on Children and Families hosted a webcast on Tuesday, April 12. In his presentation, Jon Peacock examined the portions of Gov. Walker’s proposed 2011-13 budget that affect children and families, with particular attention to the potential impact of cuts in health care, early education, and local aid, as well as changes in taxes and revenue. View the webcast. View/print the PowerPoint presentation.

Constitutionally Requiring a “Fiscal Responsibility Fund.”
A proposed constitutional amendment would mandate specific contributions to the state’s rainy day fund, and restrict the conditions under which the fund could be tapped. This two-page issue brief discusses the pros and cons of the amendment (April 11, 2011).

New Budget Adjustment Bill, Combined with Previous Legislation, Very Similar to Governor’s Original Proposal. When SB 12/AB 13 and 2011 Act 10 are taken in combination, the fiscal effect is very similar to the Governor’s original budget adjustment proposal he made in February 2011 (April 2011).

Effects of the Biennial Budget and Budget Repair Bills for Working Families – This two-page paper summarizes some of the ways that the proposed 2011-13 budget bill and the newly enacted budget repair bill will affect working families, particularly low-wage workers.  It examines the cuts to the Earned Income Tax Credit and Homestead Tax Credit, likely effects on health care programs, potential cuts to child care subsidies, diminished opportunities for education and training, and cuts to transit programs
(Update March 25, 2011).

Budget Adjustment Bill Approves Sweeping Shift in Authority for Medicaid Policymaking.  This WCCF paper summarizes the portions of the final version of the budget adjustment bill (signed by the Governor on March 11) that grants the Department of Health Services the authority to make sweeping changes in Wisconsin’s Medicaid-related programs (Updated March 22).

Budget Adjustment Bill Does Not Actually Repair the Budget -- The 2011 budget adjustment bill includes several non-fiscal policy changes, but does not actually address the shortfalls that spurred the need for budget adjustment legislation in the first place. This two-page paper compares the fiscal effects of 2011 Act 10 to earlier versions of the bill (March 17, 2011).

New Budget Repair Bill Resources Released!

Summary of Fiscal Changes in the 2011 Budget Adjustment Bill. The purpose of the budget adjustment bill is to address the gap that has opened between revenues and projected spending for fiscal year 2011. This summary describes fiscal changes in the bill as proposed by the Governor, passed by the Joint Finance Committee, and approved by the Assembly (March 4, 2011).

Different Versions of Budget Repair Bill Are Largely Similar on Fiscal Issues. This brief compares three different versions of the 2011 budget repair bill and finds that – at least on fiscal issues – they are substantially similar (March 2, 2011).

Non-Fiscal Proposals at Heart of Budget Stalemate. The state’s budget adjustment bill, aimed at closing the shortfall that has opened in fiscal year 2011, has provoked a stand-off in the Wisconsin State Senate and fuelled furious public opposition. Disagreements over the budget adjustment bill have largely focused on non-fiscal policy provisions in the bill (March 2, 2011).

New Census Data on State and Local Spending and Revenue – New data from the U.S. Census Bureau show that Wisconsin was below average in per capita state and local taxes and spending in fiscal year 2008. This two-page paper analyzes the latest data and updates the state rankings (January 2010).

Tables for Annual, Monthly and Hourly Earnings at Various Percentages of the Poverty Level. These tables show the 2011 federal poverty level for different sized families, and translate the annual poverty level figures into monthly and hourly amounts (January 2011).

New Year Brings At Least $210 Million in New Tax Cuts: Phased-In Cuts Contribut to Structural Deficit. At least eight new or expanded state tax cuts and tax credits will go into effect at the beginning of 2011. These tax changes add up to an estimated $210 million cut in state taxes over the 2011-13 biennium. Phased-in tax cuts are easier to enact than cuts that go into full effect immediately, because the revenue impact is not felt until later down the road. But when the full cost is realized, legislators must either reduce spending or find other sources of revenue (December 2010).

The Recession's Impact on Wisconsin Counties: Unemployment and Poverty Rates are Up, Health Insurance is Down in 2009. WCCF analyzed and charted the relevant Census Bureau data for 23 Wisconsin counties, and found that Wisconsin residents are feeling the impact of the national recession, as steep job loss has pushed many residents into poverty and forced the loss of health insurance coverage. BadgerCare Plus has been critically important for families who have lost their jobs and their private health insurance during the recession. See county data and interactive charts here (December 2010).

New Spending Figures Show Difficulty of Making Deep Cuts, Most State Spending is for Local Services, Other Popular Programs - This issue brief, based on figures released by the Wisconsin Department of Administration, examines a couple of key characteristics of our state budget that make major spending cuts particularly painful (October 2010).

Wisconsin Schools Slip Toward Average in Spending and Class Size - This two-page paper analyzes recent trends in education in Wisconsin, including per pupil spending, state support for schools, and student-teacher ratios. Once a national leader in educational innovation, in the past few years Wisconsin has fallen closer to the national average in many measures of educational support (August 31, 2010).

New Census Data on State and Local Spending and Revenue – This two-page paper analyzes new Census Bureau data on state and local spending and taxes in fiscal year 2007-08. The paper illustrates how Wisconsin’s rankings on a wide variety of revenue and spending measures have fallen since 2000, relative to other states. For example, Wisconsin has dropped to 22nd in direct general spending per capita, down from 12th highest in 2000. Total state and local taxes per capita were $40 less per person than the national average (July 19, 2010).

Comparing Wisconsin to Other States in the Ratio of Manufacturing to Government Jobs – This Wisconsin Budget Project brief examines how Wisconsin compares to other states in the ratio of manufacturing jobs to government jobs. Although that ratio has recently fallen below 1.0 in Wisconsin, our analysis found that no other state had a higher ratio of manufacturing jobs to government jobs in 2009 than Wisconsin, and only Indiana comes close (July 8, 2010).

TANF Emergency Fund Helps Cushion Effects of the Recession and Creates Options for State Policymakers. This issue paper examines the role of the TANF Emergency Contingency Fund (authorized by the Recovery Act) in helping Wisconsin cope with sharp increases in W-2 caseloads and higher spending for the state earned income tax credit, and in initiating a transitional jobs demonstration program (June 22, 2010).

How Does Wisconsin Compare in State and Local Spending and Expenditure Growth?--This two-page issue paper compares total state and local spending in Wisconsin with other states, examines how spending in Wisconsin has changed over time, and addresses the question as to whether our budget difficulties can be resolved by relying primarily on spending cuts. (April 2010)

Examining Wisconsin's Progress in Leveling the Tax System for Retailers -- Sales tax is due on purchases made by Wisconsin residents, whether the purchase is made in a bricks and mortar store or an online business.  However, some large online retailers, such as Amazon.com, do not collect the sales tax due on purchases made by Wisconsin residents.  This paper examines the issues surrounding sales tax and online purchases, as well as tools available to compel collection of sales tax.(April 2010)

Recovery Act Benefits in Wisconsin: The First Year (April 2010)

Pew Report Assessed Budget Challenges, not the Budget Solutions - A recent report by the Pew Center on the States ranked states on the basis of the magnitude of the fiscal challenges they faced this year as lawmakers crafted state budget bills.  It put Wisconsin among the 10 states facing the most fiscal peril.  This very brief paper summarizes the methodology used in that ranking and explains why it shouldn’t be misconstrued as an assessment of the budgets adopted in each state (November 13, 2009).

New Census Data on State and Local Government Employment – This two-page paper analyzes new Census Bureau data on state and local government employment and payrolls in 2008.  Our analysis examines how Wisconsin compares to other states with respect to the public workforce and payroll, and how those rankings have changed over time (November 3, 2009).

New Census Data on State and Local Spending and Revenue – This two-page paper analyzes new Census Bureau data on state and local spending and taxes in fiscal year 2006-07. The paper illustrates how Wisconsin’s rankings on a wide variety of revenue and spending measures have fallen since 2000, relative to other states. For example, Wisconsin has dropped to 25th in total state and local spending per capita, down from 14th highest in 2000. Total state and local taxes per capita were $65 less per person than the national average (October 2, 2009).

An Overview of the 2009-11 State Budget – Balancing the 2011-13 budget was an exceptionally challenging task. This paper provides a general picture of how the budget was balanced and outlines some of the more significant decisions relating to services for children and families (August 28, 2009).

Supports for Low-Income Families – Notwithstanding the state’s severe budget challenges, policymakers were able to protect key safety net programs and even make some modest improvements in programs serving low-income families. This paper examines the budget provisions relating to the Wisconsin Works (W-2) program, child support, and tax credits for low-income families(September 3, 2009).

Federal Fiscal Relief Helps Balance the Budget – Through the American Recovery and Reinvestment Act (ARRA), the federal government provided significant sums to state and local governments, allowing them to avoid even more painful cuts to critical services and programs. This 2-page paper examines that revenue and the challenge facing the state when it expires at the end of 2010
(September 4, 2009).

Revenue Uppers Help Close Budget Shortfall – The biennial budget bill makes changes that generate a little over $2 billion in revenue. The changes range from an increase in the cigarette tax to changes in the treatment of capital gains. Still, these revenue uppers by themselves closed only a fraction of the budget gap, and General Fund taxes in each year of the new biennium will be less that the level in 2008-09 (September 8, 2009).

What's Passed is Prologue...for Future Budget Difficulties - The state faces a “structural imbalance” for the 2011-13 biennium of $2.05 billion. That figure represents the amount of revenue growth that will be needed in the next biennium simply to maintain 2010-11 spending levels, without any adjustments for inflation or caseload growth. This brief paper examines the magnitude of the problems and its causes, such as phased-in tax cuts and the use of short-term fixes for long-term spending commitments (September 9, 2009).

Comparative Analysis of Act 28: The 2009-11 Biennial Budget Bill. This document is a comprehensive summary of the 2009-11 biennial budget bill – focusing primarily on issues relating to children and families, but also addressing measures relating to the immense challenge of filling a budget deficit of more than $6 billion.  It compares the final law (Act 28), including the Governor’s vetoes, with the versions approved at each stage of the budget process (Updated June 30, 2009). View the summary...Read the WCCF press release...

2009 Federal Poverty Levels Released! Click for latest poverty guidelines and latest poverty tables.

Catalog of Tax Reform Options – This catalog presents an inventory of options for reforming the state’s tax system and finding a balanced approach for filling the state deficit, which is now expected to surpass $5 billion over the next two and a half years.  The catalog, which is a joint effort of the Institute for Wisconsin’s Future and WCCF, presents a wide range of alternatives for enhancing state revenue.