In it, but not of it. TPM DC

Wisconsin Gov. Walker Ginned Up Budget Shortfall To Undercut Worker Rights

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"Walker was not forced into a budget repair bill by circumstances beyond he control," says Jack Norman, research director at the Institute for Wisconsin Future -- a public interest think tank. "He wanted a budget repair bill and forced it by pushing through tax cuts... so he could rush through these other changes."

"The state of Wisconsin has not reached the point at which austerity measures are needed," Norman adds.

In a Wednesday op-ed, the Capitol Times of Madison picked up on this theme.

In its Jan. 31 memo to legislators on the condition of the state's budget, the Fiscal Bureau determined that the state will end the year with a balance of $121.4 million.

To the extent that there is an imbalance -- Walker claims there is a $137 million deficit -- it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January.

You can read the fiscal bureaus report here (PDF). It holds that "more than half" of the new shortfall comes from three of Walker's initiatives:

  • $25 million for an economic development fund for job creation, which still holds $73 million because of anemic job growth.
  • $48 million for private health savings accounts -- a perennial Republican favorite.
  • $67 million for a tax incentive plan that benefits employers, but at levels too low to spur hiring.

In essence, public workers are being asked to pick up the tab for this agenda. "The provisions in his bill do two things simultaneously," Norman says. "They remove bargaining rights, and having accomplished that, make changes in the benefit packages." That's how Walker's plan saves money. And when it's all said and done, these workers will have lost their bargaining rights going forward in perpetuity.