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Today's Blog: Time for the Guv to morph into Chris Christie
My husband and I and a couple hundred friends watched in Green Bay as ...(more)

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    5/22/2008
    Senator Ellis: Governor, legislature to blame for structural deficit

    It was the failure of the governor and the legislature to honestly address a revenue shortfall – not the revenue shortfall itself – that has created a structural deficit of $1.68 billion in the next biennium, state Senator Michael G. Ellis said today.

    Ellis made his comments in a letter to Legislative Fiscal Bureau Director Bob Lang in which he took issue with an assertion by Lang that the structural deficit had increased since passage of the biennial budget “without any gubernatorial or legislative action.”

    “Structural deficits do not just happen,” Ellis said. “They are created by the failure of the governor or legislators to squarely address the imbalance between ongoing revenues and ongoing expenditures.

    “Yes, the reduction in base revenues created the potential for an increased structural deficit but it was the inability of the governor or the legislature to address that problem that actually left us with the final structural deficit,” Ellis wrote.

    Ellis noted that there are only two ways to address a structural deficit, which is an imbalance between ongoing revenues and ongoing expenditures: either increase ongoing revenues or cut ongoing expenditures. Neither the governor nor the legislature did so, he said.

    “Instead, they relied on delayed debt payments, transfers and other accounting gimmicks to shove the problem out of this election year and into the next biennium. That is what created the structural deficit.”

    Ellis said the Fiscal Bureau memos served to deflect blame from the governor and the legislature when that is where the blame should be placed.

    Mike Ellis is a Republican and represents the 19th Senate District.




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