LFB revenue prediction driven by assumptions about the national economy, budgeting at that level may be overly optimistic as Wisconsin continues to lag behind other states.

MADISON – On Wednesday, the Legislative Fiscal Bureau (LFB) released their annual 2017 state revenue update.  State revenues for the current fiscal year 2017 are estimated to come in $281.4 million below what was approved in the 2015-17 budget. The numbers are also $152.1 million what was re-estimated a year ago in the 2016 LFB revenue update.  Revenue growth for the current budget year 2017 is expected to be just 2.7%, well below the original budgeted growth of 3.8% and the LFB projection of 3.2% made last January.  Lower than expected income tax revenue and corporate income tax revenue are the main drivers of the lower estimates.

“Lower than expected revenue is a reflection that Wisconsin’s economic growth rate continues to lag behind the national economy,” said Rep. Gordon Hintz (D-Oshkosh). “The projected state revenue growth rate for FY2017 has declined with every estimate.”

The slower than expected revenue in the report was masked by unexpected savings that came as a result of lower Medicaid expenses and one-time agency savings.  The end result is a projected net ending balance of $362.2 million.  The $362.2 million includes $101 million of savings from a debt payment that Gov. Walker skipped last May. Gov. Walker skipped another $108 million debt payment in February of 2015 that inflated the 2015-17 beginning balance.

“The projected budget year-end balance being championed by Republicans comes in spite of lower than expected state revenue,” said Rep. Katrina Shankland (D-Stevens Point). “When you consider that $209 million of borrowing should be included in that balance, the fiscal picture is hardly impressive.”

The LFB revenue update also increased their revenue projections for the 2017-19 biennium. The projections were made on the assumption that 5.4 million jobs will be added nationally over the next three years, that U.S. unemployment would decline to 4.1% by 2019, that GDP growth would average 2.4% a year over the next three years, all while the country experiences a growing trade deficit.

“While I hope the assumptions about the national economy come true, I am also aware of Wisconsin’s recent disappointing economic growth rate compared the U.S.” said Rep. Hintz, “Budgeting for 7% revenue growth over the current fiscal year to the 2018-19 budget may be optimistic, considering the current budget’s revenue is expected to come in well below what was passed in the original budget.”

http://newiprogressive.com/images/stories/S5/bernie-sanders-s5.pngGroup inspired by Bernie campaign success hopes to build a progressive political revolution and take power back from the establishment and the billionaire class.

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http://newiprogressive.com/images/stories/S5/arctic-tundra-s5.jpgThe Authentic Real-world Curriculum & Technology-infused Classroom (ARCTIC) at Northstar Middle School in Eau Claire provides an innovative way to teach sixth graders and allows students to prepare for the 21st century workforce in a reimagined classroom.

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The Governor didn’t report on the actual state of our state this week, but the people of Wisconsin are busy working hard, making our communities a better place to live.

MADISON - I listened carefully to the Governor’s State of the State Address this week for anything positive that I could tell the people I’d be returning to about the issues they are most concerned about: jobs, roads and schools. An effective leader inspires people. Regrettably, no one I talked to after the speech felt inspired. Instead of a vision for our future, we were treated to an incomplete, and in many ways unconvincing, defense of the status quo.

What the Governor didn’t report was the actual state of our state:

• Wisconsin has trailed the nation in private job creation for 20 quarters – that’s five straight years
• The number of roads in poor repair is projected to double, to nearly half of all state roads, in less than ten years
• And our schools continue to see support siphoned off to the unaccountable voucher school industry – with property taxpayers having to make up the difference

“Rewarding work” was a phrase that was thrown around a lot in the speech. Unfortunately, “rewarding the well-connected” at the expense of workers has been the recurring theme of his policies over the past six years.

As a result of Gov. Walker’s policies, $209 million will be taken from taxpayers who work for a living - this year alone – and handed over to a well-connected few. Despite the loss of over 2,700 manufacturing jobs, 11 people alone will be handed $21 million of your hard-earned dollars.

This handout doesn’t reward work. It picks workers’ pockets. It’s time to stop cutting workers’ pay while rewarding millionaires who cut jobs. It’s time to put Wisconsinites who work for a living first.

You shouldn’t have to settle for less and less for your family and your future. The Governor and his colleagues in the legislature have had 6 years in power. They’ve taken good care of special interests and the rich. What have they delivered for the working people of Wisconsin?