Budget Myths Abound - by Sen. K. Vinehout "...state debt reaches an all-time high of $14.7 billion"

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The third myth says the state eliminated the debt. This is false. In fact, state debt reaches record levels in the 2013-15 budget.

Why? The budget increases borrowing by more than $2 billion. Almost half of this borrowing goes to transportation spending. In addition, debt payments not made in the last legislative session catch up to lawmakers.

When debt payments are not paid, interest adds up. In the depths of the recession, Governor Doyle delayed debt payments to gain cash and keep government going.

In the 2011-13 legislative session, Governor Walker did not pay an even larger amount of debt payments coming due. Because debt payments were not made more money goes to pay off debt in this budget than ever before.

I often hear smart budget decisions mean better times ahead. But delaying debt payments always has a cost. This budget pays that price in a greater percent of tax dollars going to pay off debt than ever before in our history. New borrowing only adds to the debt. As a result state debt reaches an all-time high of $14.7 billion - or about 101% of general tax revenue.

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http://www.uppitywis.org/blogarticle/budget-myths-abound

[WCGreen]

1. Most of the money for road work comes from the State tax on fuel and the weight tax on

Rigs. That's why they weigh semi trailers.

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2. That's true but...

Policies That Provide Tax Breaks And Other Benefits For Special Interests

Increase funds for highway projects in the 2011-13 state budget, including a $125 million transfer from the state general fund to the transportation fund during 2011-13; permanently allocate .25%, or $35 million in general taxpayer dollars to the transportation fund annually beginning in fiscal year 2012-13; transfer $60 million in revenues from other state funds to the transportation fund in 2011-13; and replace $115 million in transportation fund monies for highway projects with $115 million in borrowing paid for with general taxpayer dollars in 2011-12. These actions provide $335 million in funding for highway projects from the state’s general fund and other sources which generally have not been used to pay for highway projects in several decades. In 2012-13 alone, $137.6 million was diverted from the general fund to the transportation fund. These actions make future general fund budgets more difficult by siphoning off revenue otherwise available for education, health, or other budget priorities. In the past, Walker and Republican legislators frequently criticized Democrats for raiding state funds to pay for other bills. The budget, known as Act 32, was approved on a party line vote by majority Republican legislators and drew support from a wide array of special interests including business, manufacturing, construction, banking, agriculture, transportation and other interests which contributed $6 million to Republican legislators and $11.8 million to Walker.

Cost: $97 per family of four in 2012-13 from general fund sources, excluding new bond financing.


http://www.wisdc.org/sp052112.php