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Time for the Guv to morph into Chris Christie (6/28/2011)

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State Senator Michael G. Ellis and state Representative Dean Kaufert said the shortfall in tax collections is only the latest in troubling signs that threaten to throw the state budget deep into red ink. If tax collections in January – the reporting period that will include Christmas spending receipts – do not show significant improvement, the Neenah Republicans said a special session may be necessary to stave off large deficits.

“At the very least, we should act now to freeze spending in the second year of this biennium to the level of this year,” Ellis said. “That will save $500 million. In addition, we should consider suspending implementation of any program that did not exist prior to this budget.”

….In addition to the shortfall in tax collections, Ellis and Kaufert pointed to other concerns that spell trouble for the state’s fiscal health, including legal challenges and a questionable accounting shuffle used to balance the current budget. In addition, continuing increases in gasoline and heating fuel costs point to continued stagnant, if not lowered, sales tax collections.

….Kaufert and Ellis said that with all these problems, the state budget could face a shortfall of as much as three-quarters of a billion dollars in this biennium alone. [Wow. Add that to $2.44B and you’re well over $3B.]

Representative Lasee sees only more gimmicks.

It will be interesting to see where my colleagues in the legislature and in the Governor’s office propose to come up with more money to keep our state on an even keel. My bet is that it will not be by trimming programs or putting off any new programs, which is my choice.

My guess is it will involve more borrowing and accounting gimmicks. Re-mortgaging the tobacco funds and finding other ways to borrow.

Another likely strategy is to do more deficit accounting. Wisconsin’s Generally Accepted Accounting Principles (GAAP) deficit is already $2.4 Billion, and is likely to grow. There are three states, Illinois, California and Wisconsin, who cook their books [i.e., aren’t required to use GAAP accounting when passing the budget; see the WISTAX article linked above]. Somehow the other 47 states don’t do this. These three states didn’t have surpluses like most of the others states did over the last few years.

I for one, am going to listen very carefully tonight. Is the money for all this new or expanded economic development/stimulus stuff the governor’s been touting of late already in the budget? (Tom Still says we can’t afford not to implement these NEW programs.)

I’m going to listen very carefully to any suggestion of new taxes or fees (Oh excuse me. It will be called “investment”).

And I will be listening very carefully for any mention of tightening our fiscal belts. For the specifics. For the guts it will take to lead a legislature and a state down the path of fiscal prudence. Sadly, I’m with Rep. Lasee – I can’t imagine I’ll be hearing it.

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