WE'LL TALK ABOUT GOVERNOR EVERS'
BUDGET PROPOSAL, INCLUDING $6
MILLION IN NEW SPENDING TO PAY
FOR PUBLIC EDUCATION, A 10% TAX
CREDIT TACT TARGETED AT THE MIDDLE
CLASS, AN EXPANSION OF
WISCONSIN'S MEDICAID PROGRAM AND
IT ALSO LEGALIZES MEDICAL
MARIJUANA AND DECRIMINALIZES
SELLING AND SMOKING SMALL
AMOUNTS OF MARIJUANA.
EVERS SAYS THERE IS STRONG
PUBLIC SUPPORT FOR HIS IDEAS.
>> MORE THAN ONE MILLION
WISCONSINITES HAVE RAISED THEIR
OWN PROPERTY TAXES TO SUPPORT
THEIR LOCAL SCHOOLS IN THEIR
COMMUNITIES.
THIS IS SIMPLY NOT SUSTAINABLE.
I SAID ALL ALONG THAT WHAT'S
BEST FOR OUR KIDS IS BEST FOR
OUR STATES.
INVESTING IN OUR KIDS WILL YIELD
DIVIDENDS FOR OUR FUTURE.
K-12 WE'RE GOING TO PROVIDE
HISTORIC INVESTMENTS AND
RETURNING TO TWO-THIRDS FUNDING
AT THE STATE LEVEL.
[CHEERS AND APPLAUSE]
>> FOR ANALYSIS, WE WELCOME BACK
TODD BERRY FROM THE WISCONSIN
ACADEMY OF SCIENCES, ARTS AND
LETTERS.
THANKS FOR BEING HERE TODAY.
>> AND TEACHING ON THE CAMPUS.
>> GOOD FOR YOU.
>> TONY EVERS SAYS THIS IS THE
PEOPLE'S BUDGET AND HE
REFERENCED A LOT OF POLLING
SUPPORT IN HIS SPEECH FOR SOME
OF HIS POSITIONS.
REPUBLICANS ARE SAYING THIS IS
THE MOST EXTREME LIBERAL AGENDA
THEY'VE EVER SEEN.
WHERE DO YOU FALL IN ALL THIS?
>> I TRY TO AVOID THE PUNDITS
HERE AND GO TO THE STR STRUCTURAL
MECHANICS OF THE NUMBERS.
THE LA LONG AND THE SHORT OF IT, BY
THE TIME WE GET TO 2021, THE
SURPLUS OPENING BALANCE IS OVER
$9 MILLION.
WHEN WE END THAT YEAR THE NET
BALANCE IS $20 MILLION.
IN OTHER WORDS, WE'VE REALLY
SPENT ONE-TIME MONEY AND I
COULDN'T FIGURE OUT SEEING ALL
THESE THINGS GOING ON IN THE
PRESS ABOUT ALL THESE THINGS HE
WAS PROPOSING, WE ONLY HAD $1.8
BILLION IN NEW MONEY COMING
SUPPOSEDLY, HOW WAS HE PAYING
FOR ALL THIS.
THE ANSWER IS IN PART SURPLUS
AND THEN THERE'S A BILLION PLUS
IN TAX INCREASES.
NOW, THERE'S SOME TAX CUTS, TOO,
BUT -- AND THAT, YOU KNOW, THE
ONE THING THAT WILL UNITE
REPUBLICANS IS TAXES.
AND SO THAT'S WHY YOU'RE GETTING
THE SHOUT BACK FROM THEM.
>> SO, NOW REPUBLICANS
CRITICIZED THE GOVERNOR FOR NOT
CONSULTING WITH THEM BEFORE
RELEASING THE BUDGET.
IS IT REALISTIC FOR THAT TO
HAPPEN?
>> NO.
NO.
>> OR SHOULD THIS BE LIKE HIS
IDEALS?
>> NO.
GOVERNORS DON'T CONSULT WITH --
IT'S THE EXECUTE BUDGET.
GOGOVERNORS PREPARE THE BUDGET.
THIS IS THE NORMAL PROCESS.
SO THAT'S JUST RHETORICAL.
NOW, THERE MAY BE SOME VALID
REASONS THEY DON'T LIKE THE
BUDGET, BUT THIS ISN'T ONE OF
THEM.
>> SO HOW DOES EDUCATION GET
PAID FOR IN HERE?
>> YEAH.
WELL, AGAIN, IT'S STRIKING THAT
HISTORICALLY -- WE'RE REALLY
TALKING K-12 BECAUSE THERE'S NOT
A LOT FOR THE UNIVERSITY OR TECH
COLLEGES.
HISTORICALLY SCHOOL AIDS WERE
ABOUT 35% OF THE GENERAL FUND
BUDGET.
HE'S PUTTING ALMOST 60% OF THE
NEW MONEY IN SCHOOL AIDS.
SO ONE WAY HE'S PAYING FOR IT IS
HARDLY ANYTHING ELSE IS GROWING
EXCEPT MEDICAID AND THAT HE'S
DOING WITH FEDERAL MONEY.
SO PUT OTHER THINGS ON HOLD,
DRAW DOWN THIS SURPLUS AND THEN
FILL IN WITH TAX INCREASES.
>> SO -- AND THIS MIGHT BE A
LOADED QUESTION, BUT IS THIS
FISCALLY RESPONSIBLE?
>> WELL, I'LL PUT IT MY OLD
WISCONSIN TAXPAYERS ALLIANCE
HAT, AND WE TRIED TO HOLD
GOVERNORS AND LEGISLATORS IN
BOTH PARTIES' FEET TO THE FIRE
ON THIS FOR YEARS.
AND WHEN WE SAW SECOND-YEAR
BUDGETS WHERE THEY WERE SPENDING
A LOT MORE THAN THEY WERE
BRINGING IN IN REVENUE, WHICH
THIS DOES, YOU CREATE THIS BIG
PROBLEM GOING INTO THE NEXT
BUDGET.
SO YOU HAVE LIKE A $800 MILLION
PLUS PROBLEM.
THE OTHER THING WE LOOKED AT IS
WHAT WERE THE IMPLICATIONS FOR
THE STATE'S FINANCIAL
STATEMENTS, THE SO-CALLED GAP
DEFICIT, WHICH NOBODY TALKS
ABOUT.
AND THIS BUDGET AS IT STANDS NOW
WOULD INCREASE THAT BY A BILLION
DOLLARS.
SO IT STARTS TO MOVE IT BACK UP.
WALKER HAD GOTTEN IT DOWN A
LITTLE BIT AND THEN HAD LET IT
DRIFT UP AGAIN AND THEN IT CAME
DOWN A LITTLE BIT.
NOW IT'S GOING TO GO UP.
>> WE KNOW THAT REPUBLICANS ARE
GOING TO COMPLETELY REWRITE
THIS.
THEY'VE TALKED ABOUT PROBABLY
INTRODUCING THEIR OWN BUDGET.
IN THE END, HOW MUCH DOES IT
MATTER WHICH VERSION THEY WORK
FROM?
WHAT MATTERS IS WHAT THEY
DELIVER TO HIS DESK.
>> YEAH.
YOU KNOW, I KNOW THEY'LL GET
ATTACKED FOR PUTTING HIS BUDGET
IN THE NEAREST RECEPTACLE,
ALTHOUGH GOVERNOR EVERS IS USED
TO THAT BECAUSE AS DPI HE WOULD
ALWAYS PROPOSE BUDGETS AND
GOVERNOR WALKER WOULD ALWAYS
IGNORE THEM.
SO I THINK THAT THERE MAY BE SO
MUCH GOING ON IN THIS BUDGET,
THERE ARE JUST SO MANY PROPOSALS
FOR HIS BASE, IN A SENSE, THAT
THEY MAY JUST SAY WE DON'T WANT
TO HAVE TO SIT AND THINK ABOUT
EVERY ONE OF THESE AND VOTE YES
OR NO.
MAYBE WE SHOULD JUST START OVER.
PROCESS-WISE IT MIGHT BE EASIER.
>> NOW, DOES THIS ACCOUNT FOR
ANY POSSIBLE DOWNTURN IN THE
NATIONAL ECONOMY?
WHAT WOULD HAPPEN IF WE DID
APPROACH --
>> WELL, THIS IS THE OTHER THING
I ALWAYS WORRY WHEN I WAS DOING
THIS FULL-TIME, IS DOES THE
BUDGET SUSTAIN ITSELF IF
ANYTHING GOES WRONG.
AND THE ENDING BALANCE NET IS
$20 MILLION.
I MEAN, $20 MILLION, AS I ALWAYS
SAID, ON ON DOYLE BUDGETS A AND
WALKER BUDGETS, BECAUSE THEY
WERE ALL LIKE THIS, TOO, IS A
SPLIT IN LAKE MENDOTA.
YOU KNOW, THAT'S A DAY OF INCOME
TAX COLLECTION.
AND IF YOU LOOK AT THE
UNDERLYING FISCAL BUREAU REVENUE
ESTIMATES, WHAT IT WAS SHOWING
IS THE REVENUE GROWTH WAS ONLY
ABOUT 3% PER YEAR AND YET THIS
BUDGET IS GROWING SPENDING AT A
HIGH OF 6% A YEE A YEAR.
I THINK MOST ECONOMISTS ARE
WORRIED ABOUT 2021.
IN THE END WILL THIS WUM D -- COME
DOWN TO A BATTLE BETWEEN THE
BUDGET WRITERS AND GOVERNOR
EVERS' VETO PEN?
>> WELL, IT WOULD BE HELPFUL IF
IT WOULD BE BETWEEN THE BUDGET
WRITERS ON THE FINANCE COMMITTEE
AND THE CORE BUDGET
DECISION-MAKERS IN THE EVERS'
ADMINISTRATION, THAT IF THEY
COULD BE WORKING ON
ACCOMMODATIONS BEHIND-THE-SCENES
SO WE DON'T GO BACK TO THE OLD
JENSEN DAYS WHEN WE HAD BUDGETS
PASSED IN OCTOBER.
WE HAD ONE UNDER WALKER TOO WHEN