Other State Budget Issues

Options for Closing the Shrinking Medicaid Deficit. This Wisconsin Budge Project paper examines the latest estimates of the size of the Medicaid deficit and options for eliminating that shortfall (May 4, 2012).

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

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).

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).  

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). See 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).

Tax Cuts and Tax Increases in the Budget Bill and 2011 Special Session Bills. This two-page fact sheet describes the fiscal effect of tax cuts and tax increases in the 2011-13 biennial budget bill (July 14, 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).

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).

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).

Comparison of Medicaid Policy-Making Changes in Act 10 and the Biennial Budget Bill. This one-page paper compares the provisions relating to Medicaid policy-making in the biennial budget bill with the similar portions it is repealing and replacing in the budget repair bill.  In addition to providing a succinct comparison of the two bills, it links to a much more thorough WCCF analysis of the changes (June 21, 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).

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).

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).

Summary of the Medicaid Policy Changes in the Budget Adjustment Bill – This paper summarizes the portions of the budget adjustment bill (as amended on Feb. 16 by the Joint Finance Committee) that would grant the Department of Health Services the authority to make sweeping changes in Wisconsin’s Medicaid-related programs. An appendix summarizes the current federal “maintenance of eligibility” (MOE) requirements, which the Governor would seek to be exempted from through a federal waiver (February 17, 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 Contribute 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).

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).

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 9, 2009).

Taxation of Capital Gains in Wisconsin -- Wisconsin is one of nine states that provide a tax break for capital gains.  That tax exclusion has become a hot topic after the state Senate voted on June 17 to eliminate the tax break for such income, in lieu of creating a new oil company tax.  This issue brief provides some basic information relevant to the debate about taxing capital gains (June 22, 2009).

Additional Options for Closing Wisconsin’s Budget Shortfall – This short paper explains four options for generating additional revenue in the biennial budget (May 4, 2009).

Census Bureau Issues New Figures on State and Local Finances – This
2-page report by the Wisconsin Budget Project analyzes recently-released data from the U.S. Census Bureau on state and local government finances in 2006.  The new data show that Wisconsin is slightly below average in per capita state and local spending and is virtually the same as national average in per capita state and local taxes.  The report looks at these and other ways to rank revenue collections and spending relative to other states.

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.

Miscellaneous Options for Increasing State Tax Revenue – As the state considers what to do about a deep budget deficit, we are often asked what the options are for increasing revenue.  This short paper simply lists some hypothetical options, with estimates of the annual revenue that could be gained. (February 21, 2008)

Estate Tax Could Protect Vulnerable Familes from Budget Cuts
(February 20, 2008).

Closing Corporate Tax Loopholes to Fund Programs for Families
(Februrary 20, 2008).