Sen. Leibham expresses his concern with the downward spiral of state revenues
The state Department of Revenue recently released an official update on tax revenue collections for the state of Wisconsin. Not surprisingly, the numbers are grim and show the effects of a continuing economic recession and high unemployment across Wisconsin.
The following list describes state general fund tax collections (GPR) for fiscal year 2009-10-to-date and how they fare compared to last year:
Income tax collections are down 5.7 percent Sales tax collections are down 9.9 percent Corporate tax collections are up 8.5 percent Excise tax collections are up 6.6 percent Other tax collections are down 70.8 percent
Total state general fund tax collections (GPR) are down 6.4 percent.
As you review the list, please note that corporate taxes show an increase in collections due to substantial increases in these taxes as a part of both the budget adjustment bill that was passed earlier this year and the 2009-11 state budget that was enacted this past summer. Similarly, excise taxes show a substantial collections increase as a result of the major increases in cigarette and tobacco taxes under the new budget.
Last week I spoke of my concern with the Legislature’s lack of focus in addressing private sector jobloss across our state. I am just as disappointed that very little conversation is taking place in the state Capitol about these declining tax numbers. The lower tax collections do not bode well for our state budget, which is already expected to open the 2011-13 biennium with a structural deficit of nearly $2 billion. With Wisconsin's economic recession continuing indefinitely, I am very concerned about our state's fiscal health in the months and years ahead. In fact, our state was recently cited for having the 10th-worst fiscal budget crisis in the nation in a non-partisan report on the states by the Pew Center.
I believe the Legislature should be proactively planning for the budget changes that will need to be made if the revenue numbers do not turn around. We should be pushing each state agency and program to put together plans to reduce their budgets and come up with cost-saving initiatives. I will be doing this with my office budget and each state office should be doing the same thing.
Far too often, due to bad advanced planning, the Legislature will say, “We have to raise taxes to deal with the budget shortfalls.” This cannot happen again! The hard-working individuals and families of Wisconsin are already pushed to their limit. Government must reign in its spending and adjust the budget to reflect the lower revenue.
As always, it has been a pleasure communicating with you. Please remember to communicate with me and share your input by calling (888) 295-8750, writing to me at P.O. Box 7882, Madison, WI 53707-7882, or by e-mailing me at Sen.Leibham@legis.wi.gov. You can also logon to the 9th Senate District online office at www.leibhamsenate.com.
It is an honor representing the residents of the 9th District in the state Senate.
