Wisconsin’s Tax Ranking Drops, but Pace of Job Creation Stays Slow

Tuesday, October 17, 2017 at 9:16 AM by

Wisconsin’s ranking among the states in many measures of government revenue and spending has dropped considerably since about 2000, but that hasn’t translated into an increased pace of job creation, new figures from the U.S. Census Bureau show. In fact, Wisconsin continues to trail the national average in job growth.

A new analysis from the Wisconsin Budget Project shows that over time, Wisconsin’s ranking on government revenue and spending has dropped and is now in the middle of the states:

  • Wisconsin state and local governments ranked 25th among the states in the amount of taxes, fees, and other charges they collect from state residents when measured on a per-person basis. That ranking has dropped considerably since 2000, when Wisconsin ranked 11th highest among the states on this measure. Figures are for fiscal year 2015.
  • Wisconsin also ranks exactly in the middle –25th – when the amount of taxes, fees, and other charges collected from residents are measured as a share of income.
Read more

Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

Thursday, August 31, 2017 at 12:56 PM by
Several important public benefit programs provide strong incentives to work, but you wouldn’t know that when you listen to Speaker Paul Ryan talk about those programs. He has been using half-truths to create a very distorted impression of public benefits, as he seeks to advance an agenda that would further shift federal tax and budget policy in favor of the very wealthy, at the expense of low-income households.
Categories: Blog, EITC, federal issues, Medicaid, refundable tax credits, taxes | Comments Off on Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

Reviewing the Foxconn Costs and Risks (without the Rose-colored Glasses)

Wednesday, August 2, 2017 at 5:31 PM by

Different Assumptions about Foxconn Job Creation Yield Much Higher Estimates of the Cost of Jobs

The cost of the proposed new tax credits for the tentative deal with Foxconn could be far larger per job created than some people have suggested. Those costs will vary greatly depending on the ratio of spending for payroll versus the capital expenditures.

The more that Foxconn invests in its facilities and state-of-the-art automation, rather than payroll, the more the proposed deal will cost state taxpayers per job created. A new Wisconsin Budget Project report examines the potential tax credit costs based on four scenarios that make different assumptions about the number of new jobs, the duration of the project, and the amount of Foxconn spending for capital improvements. Read more

Revised Spending and Revenue Projections Improve Budget Outlook

Wednesday, January 25, 2017 at 6:38 PM by

Mediocre Revenue Projections Beat the Low Expectations

A modest upturn in the state revenue projections and a significant reduction in state spending estimates have created a much better outlook for the state budget.

Before elaborating on the latest numbers, which were released by the Legislative Fiscal Bureau (LFB) last week, I have to admit that the new state tax collection numbers are considerably better than I expected when I wrote a very cautionary blog post about the next state budget a week or so ago. This is one of two recent occasions (along with my prediction that the Packers would lose to Dallas) when I am very happy to have been wrong.

Although the new revenue forecasts are also significantly better than the Department of Revenue projected two months ago, they are nothing to brag about. In fact, the latest tax collection estimate for the current fiscal year is $281 million less than the estimate that the biennial budget bill was based on. Read more

Blueprint Lays Framework to Help all Communities in Wisconsin Thrive

Thursday, January 19, 2017 at 6:15 PM by
In order for Wisconsin remain an attractive place to live and work, the state needs to make investments in a skilled workforce, a strong public education system, and a healthy citizenry. A broad-based coalition has set out a plan for how we can invest to help Wisconsin communities thrive – and it starts by recouping millions of dollars lost to tax loopholes that benefit a small number of people.
Categories: 2017-19 biennial budget, Blog, capital gains, corporate tax, economic development, In Focus State Budget, taxes | Comments Off on Blueprint Lays Framework to Help all Communities in Wisconsin Thrive

Warning Signs for Next Week’s Budget Numbers

Tuesday, January 17, 2017 at 9:11 PM by

January 18th UPDATE:  Sometimes it feels good to be wrong — like when the Packers outperform my pessimistic predictions and when new state revenue forecasts are stronger than I anticipated. So I’m very happy that the revised revenue projections released this afternoon by the Legislative Fiscal Bureau (LFB) are considerably better than I expected when I wrote our Jan. 17th blog post.  (Read more here.)

The new LFB numbers indicate that a combination of lower-than-expected spending and higher-than-expected tax revenue will be enough to maintain a comfortable budget balance in the current fiscal year, and also enough to fund the amounts requested by state agencies in the next biennium. That’s a huge relief after the very slow revenue growth from July through November, which suggested that the next estimate of revenue collections was likely to be down, rather than up. This year’s revised revenue collections are still below the level forecasted a year ago, but are now expected to be considerably stronger in the next biennium than the Department of Administration estimated in November. Read more

State Tax Collections Fall Further Below Expectations

Tuesday, December 27, 2016 at 2:15 PM by

Very Slow Tax Growth Suggests Budget Difficulties Ahead

New tax collection numbers that were released late on December 23 do not bode well for the Wisconsin budget. The November tax figures released by the Department of Revenue (DOR) late last Friday – a week after negative job numbers – suggest significant challenges ahead for state budget writers.

I’m not sure whether DOR released the tax collection data just a couple of hours before the Christmas break in order to avoid public notice, but if that was their plan it worked very well. There doesn’t seem to have been any media coverage of the new numbers. Read more

Categories: 2015-17 biennial budget, 2017-19 biennial budget, Blog, corporate tax, STATE TAXES, taxes | Comments Off on State Tax Collections Fall Further Below Expectations

Revenue Shortfall Means another Difficult Budget

Tuesday, November 22, 2016 at 7:54 PM by

This Year’s Tax Collections Are Expected to be $351 Million below Original Estimate

A new state report about projected state revenue and the agency budget requests reinforces concerns that the upcoming 2017-19 Wisconsin budget will be another difficult one to balance. The primary problem is that tax revenue growth is well below the level anticipated when the budget bill was enacted in July 2015.

I’ll get to the specific numbers in a moment, but the bottom line is that the state’s large tax cuts, coupled with lower-than-anticipated job gains and revenue growth, mean that as state policymakers develop the next state budget they are going to have to either continue to squeeze spending or close some tax loopholes. Read more

Categories: 2015-17 biennial budget, 2017-19 biennial budget, Blog, taxes | Comments Off on Revenue Shortfall Means another Difficult Budget

State Tax Growth Lags Well Behind Anticipated Level

Friday, October 21, 2016 at 8:00 AM by

The Combined Effects of Two New Budget Reports Create Significant Fiscal Challenges

New tax collection numbers released yesterday are the second dose of worrisome budget news in Wisconsin this week. Right on the heels of a report showing that the budget balance was well below the anticipated level after the close of the 2015-16 fiscal year, new tax collection figures reveal that revenue fell well short of the projected level during the first quarter of the current fiscal year.

Taken together, the two documents released this week indicate that it could be very challenging to finish the 2016-17 fiscal year in the black. Read more

Mixed News on State Budget: Increased Balance Falls Short of Budgeted Level

Tuesday, October 18, 2016 at 12:47 PM by

Despite Delay in Debt Payments, Budget Remains Very Tight

An annual budget report issued yesterday has a little bit of good news for the state, but also disappointing news. The bottom line is that the state’s budget balance grew this year, but by less than the budget bill was counting on. As a result, it could be difficult to keep this year’s budget in the black if tax revenue continues to fall short of the expected level. [See the update below about the new tax collection figures.]

The new Annual Fiscal Report shows that Wisconsin finished the 2015-16 fiscal year with a balance of almost $314 million.  Although that’s pretty good news, it’s also a bit disappointing because even though the balance grew by $87 million this year, the budget bill had assumed the state would have about $77 million more in its balance at the end of the 2015-16 fiscal year. Read more