During the last election season, I pointed out to whomever would listen that The Comptroller General at the Government Accountability Office warned that government entitlement spending is like a runaway freight train headed straight at American taxpayers and that Congress had its hand on the throttle, not the brake. Since then, the train has picked up speed.

My concern was federal spending but Wisconsin also has had a continuing problem with fiscal responsibility we seldom hear about. The Legislature has a bad habit of irresponsibly spending more money from the general fund than it takes in from normal revenue sources. This happens in good economic times and bad; with Republicans or Democrats in charge. Legislators continue this practice, despite the fact that Wisconsin’s constitution requires that the state budget be balanced.

The state’s projected general fund budget deficit at the end of the current biennium is a staggering $5.4 billion. That is far higher than any projected budget deficit in the past, according to a report from the Department of Administration.

“We have to balance the budget. We are not the federal government. When we are in difficult financial circumstances, we can’t just say, ‘well, that’s alright, let’s just spend more money there, or let’s spend more money there.’ We don’t have that option.” ~ Governor Jim Doyle, 2008

Wisconsin has one of the largest per capita deficits in the nation. Most of the other states in that category, like Illinois and California, have much higher populations than Wisconsin, so, We’re Number One!

In the last session, Legislators passed a litany of tax increases and mandates that increased labor costs, health care costs, and insurance rates, making it more expensive for Wisconsin businesses to operate. Wisconsin is ranked as having one of the ten worst business climates in the nation! In just the past year, Wisconsin has lost major employers including Gardner Denver, Briggs and Stratton, Parker Pen, and General Motors. Harley-Davidson is looking. In February, Wisconsin had more government jobs than manufacturing jobs.  This is more bad news for the budget.

Federal Reserve Chairman Ben Bernanke recently warned, “The country’s budget deficit is on an unsustainable path and requires near-term action from policymakers to avoid dangerous outcomes.” (Has Bernanke been reading my columns?)

That means that our Legislature must focus on keeping and attracting business as well as eliminating debt and preparing for bad times. There will be no more “stimulus” programs coming our way so we must be prepared to make it on our own.

My campaign to represent the 85th Assembly District supports reforms proposed for legislators by the Wisconsin Policy Research Institute, including:
• Stop spending more than they are taking in.
• Refrain from starting new state programs.
• Reduce the use of debt, and end the use of debt as an indirect substitute for current spending.
• Fund meaningful budget reserves.

Jim Maas, LPWI Vice Chair and Libertarian candidate for the 85th Assembly District seat.
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