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H 17°, L 4°Wisconsin is one of top 10 states facing “fiscal peril” this year, according to a report released Wednesday by the Pew Center on the States.
The Pew Center scored all 50 states using data taken as of July 1, 2009, in a study entitled “Beyond California: States in Fiscal Peril.” According to the analysis, Wisconsin is one of nine states — including Illinois, Michigan and Florida — following in California’s footsteps toward economic turmoil.
California itself has taken the national spotlight after a combined force of decline of state revenues, increased unemployment, high foreclosure rates and poor money management practices led to serious economic issues. The change in the state revenue of California was negative 16.2 percent, according to the study. Wisconsin is less than 5 percent behind, at negative 11.2 percent.
The recession has had a particularly negative effect on Wisconsin for several reasons. Even if it had not taken place, Wisconsin still would have been left with a major shortfall in its budget — a factor that has been exacerbated by the national economic problems, the study said.
UW professor of political science Charles Franklin attributed the rising deficit to the Wisconsin Legislature’s consistent refusal to balance the budget and continued spending.
“The state government has been borrowing money, paying bills in the following year and taking money away from the university, all of which have contributed to the current economic problems,” Franklin said.
Franklin added these problems are due to a lack of political responsibility in both the Republican and Democratic parties. Neither party is inclined to raise taxes; yet, neither wants to cut spending. The result is the $6 billion deficit the Pew Center’s analysis has exposed.
The recession has cost Wisconsin 140,000 jobs — one-eighth of the manufacturing workforce, according to a report released in September by the Center on Wisconsin Strategy. Wisconsin is currently matched with the national average of unemployment.
This fact will undoubtedly be a major issue in the upcoming gubernatorial race in Wisconsin, Franklin added.
“The underlying issue is that you create jobs by creating companies. The upcoming election will be really dependent on the question of how to go about this,” Franklin said.
Franklin suggested one possible solution to economic problems facing the state is to grow new businesses, citing Silicon Valley in California as an example.
Franklin added the state government should provide incentives to start up new companies.
The change in California’s unemployment rate is only slightly higher than Wisconsin’s at 4.6 percent, compared to 4.4 percent, according to the study.
The rising rate of unemployment is due in large part to the loss of manufacturing jobs.
“The loss of the manufacturing jobs isn’t just due to the recession. Many of the jobs have moved to low-wage states and countries,” Franklin said.
The repercussions of the “fiscal peril” of these 10 states will extend beyond their own borders. These 10 states contribute to one-third of the U.S. economic output and population. Any measures taken by state governments will affect the country’s economic recovery, the statement said.
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“The change in the state revenue of California was negative 16.2 percent, according to the study. Wisconsin is less than 5 percent behind, at negative 11.2 percent.”
5 precentage-points, not 5%. They are nearly 50% behind, jackasses. Think of it this way: 250 is 25% of 1000, while 500 is 50% of 1000. 500 is twice as high as 250, so it’s 100% higher than 250, as it is two-250s. It’s not 25% percent higher, but that’s what your calculations would show. Nice job, copy editors…way to suck at your jobs.
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Oh yeah…and interview someone other than Franking once and awhile for political-related questions. It’s obvious to any daily reader that he is quoted at least 2-3 times a week. Quit training your writers to be lazy and start getting other sources, for crying out loud.
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Franklin*
2-3 times/week in the Hearld*
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Herald**
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Franklin 2-3 times/week in the Herald? I’m sorry, you must be confusing the Herald with the Cardinal. And screwing up that many times on your posts makes you look like a bigger tool.
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Anonymous 8:39-8:43
I guess it is easy to rip on the paper as opposed to those in our state government who are truly the individuals who should be held responsible for our tax dollars. Not sure how many people who read this paper actually pay taxes but hey when you get there you will realize how frustrating it is to see your tax dollars go up in smoke.
Raising taxes is not always the best solution - give more money to people who are already spending more than what they have. That never works for the general public but government can always go to that bottomless pit of taxpayer revenue. How many of these elected officials even know how to balance their respective checkbooks.
Wake up! It is these wonderful people we vote into office who have a moral obligation to be good stewards of our taxpayer dollars. Unfortunately this is the same group that we elect over and over who are incapable of such.
So I really do not care who is quoted in as much that the story gets out there for the general public to be aware of which unfortuately most do not seem to understand the dire situation we are really in.
I would be curious as to what the Doyle administration has to say about the situation that the state is currently in. Or are they incapable of answering the tough questions?
JW
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“�The state government has been borrowing money, paying bills in the following year and taking money away from the university, all of which have contributed to the current economic problems,� Franklin said.”
That state has been taking wealth away from the PEOPLE. This is what government borrowing and spending IS.
�The underlying issue is that you create jobs by creating companies. The upcoming election will be really dependent on the question of how to go about this,� Franklin said.
This is NOT the question. Government cannot create anything, not jobs and not companies. Creating a successful company requires individuals who have the talent to do so and the freedom to do so.
“Franklin added the state government should provide incentives to start up new companies.”
The government should not provide “incentives” it should leave people free. Government needs to understand that it has one function and one function only: protect the freedom of individuals. It is the individual who has the right and responsibility of incentivizing himself.
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I place economy among the first and most important virtues, and public debt as the greatest dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy. - Thomas Jefferson
IF WE CAN PREVENT THE GOVERNMENT FROM WASTING THE LABOR OF THE PEOPLE, UNDER THE PRETENSE OF CARING FOR THEM, THEY WILL BE HAPPY.
BIG if!
Didn’t they sell off years of tobbaco settlement payments for ready cash?