New State Budget Protects Middle Class, Future Generations
Spending plan will help improve the economy while continuing to address state's ongoing needs.
The Kaukauna School District recently announced that our reforms will allow them to add more teachers, reduce class sizes and set funds aside to reward excellent teachers next school year. This is a prime example of how our budget and budget reforms protect middle class jobs and property taxpayers – as well as future generations.
The 2011-13 state budget I recently signed transformed a $3.6 billion deficit into a surplus, it caps property taxes and it provides support for basic safety net programs to protect seniors and needy families. It does what we said we would do to get this state working again.
The balanced budget is built on our reforms that give schools and local governments the tools to balance their own budgets and protect jobs – without hurting taxpayers.
Recently a 60-year-old custodian wrote to me about his property taxes. He noted they went up $500 last year. When he retires he said, “My property tax bill will be my highest expense next to health insurance. I will have to find a part-time job just to live normally.”
Under our budget, the average property taxpayer will save $700. It is my hope that savings like this will help keep more people like that custodian safely in their homes.
Our balanced budget also provides a safety net. Over the next two years, nearly all new revenue that the state receives will go to programs that care for needy families and children – as well as our seniors.
As the father of two kids in a public high school, seeing our schools do well is important to me. Spending for our public schools continues to be the largest part of the budget at the same time that our reforms allow schools to put more of their resources into the classroom.
Our budget also allows us to look to the future. It is the first truly balanced budget in more than a decade. The national bond rating agencies call it “credit positive” because we make the structural changes needed to ensure stability for the future.
This fiscal stability will do more than balance the budget; it will help us improve the economy.
Already, we have seen signs of recovery. That’s vital to middle class families. Recently, a woman named Tina e-mailed me about her family of four (soon to be five). Her husband lost his job last year and she said that she’s hoping that our efforts to boost the economy will continue to grow jobs in this state.
Through May, Wisconsin has added more than 26,000 private sector jobs (13,000 in manufacturing). Our national ranking on good places to do business rose from 41 to 24. And a ranking of job creators in the state showed that 88 percent of them think we are going in the right direction this year (vs. 10 percent in 2010).
Still, we can not rest until the economic recovery goes from Wall Street to Main Street and – most importantly – to every street in Wisconsin. That is why our budget includes incentives to create more manufacturing and agricultural jobs, in addition to increasing investments in Wisconsin-based companies that employee our residents.
We have to succeed so that families like Tina’s can get back to work. And working together, we will.
Our budget chooses to fix our problems now, so that our children and our grandchildren don't face the same challenges we face today. I want them to grow up in a Wisconsin even better than the Wisconsin I grew up in - that's what this budget sets out to do.
Vicki Bennett
10:37 am on Sunday, July 10, 2011
Does this mean that my property taxes will go down $700.00? Or, does it mean that they won't be raised $700.00. Please give specifics. Also, where did you say the jobs were and are they long-term?? Please give specifics.
Enough of the anger
11:53 am on Sunday, July 10, 2011
Vicki, I can almost guarantee you that you will not see any reduction in your tax bill. Remember the quote, "the average property taxpayer will save $700." That means higher income earners and homeowners of more expensive properties will see a greater "savings" than the "average property taxpayer" and the oposite end of the spectrum will see no savings.
Kelly O'Brien
12:42 pm on Sunday, July 10, 2011
Vicki, you raise an interesting question. Ponder this! Village residents authorized the Shorewood School District to borrow up to $13.645 million to fund fiscal promises without setting aside the cash to pay for them. Those who advocated for the referendum told us that it will only raise property taxes $63 on a home valued at 300K. The village authorized borrowing $35 million to fund future sewer repairs. Tomorrow night the village board will take up a proposal to borrow $9 million for road repairs. Scott Walker's budget gives local government the tools to lower spending and cap property taxes. It will only work if local elected officials use the tools. So far that looks bleak.
Shorelander
10:33 pm on Sunday, July 10, 2011
Tax levies will be frozen, although can increase for new construction .. for Shorewood and WFB, that'd be in the .5% neighborhood. School spending was mandated to be less per pupil, but Shorewood passed a referendum, and WFB did so 2 years ago as well.
My guess would be that residents in WFB and Shorewood will see flat tax bills, or perhaps down 1% or so .. maybe $100.
As for borrowing for infrastructure needs like sewers .. those are not limited by the tax levy freeze .. although are paid over 20-25 years.
Randy1949
9:49 am on Monday, July 11, 2011
@Shorelander -- are the school levies frozen as well as the local levies? That was something that was never quite clear in the coverage of the bill. The local portion of my property tax bill is insignificant compared to the school levy. And will there be new assessments to reflect the decreased fair market value of our homes and land? It has been the increased assessments causing me the most trouble over the past twenty or so years.
Jay Sykes
10:33 am on Monday, July 11, 2011
@Shorelander... If infrastructure funding is not limited by the tax levy freeze, how is 'infrastructure' defined for purposes of property tax levy.
Keith Schmitz
1:48 pm on Monday, July 11, 2011
From what I understand, the places that are OK this year are going to see major league problems next year. Walker was a disaster in Milwaukee county. What in the world makes of any of you think that he won't be anything else at the state level?
CowDung
1:59 pm on Monday, July 11, 2011
Care to share where that understanding comes from Keith?
Mira Bluesky
10:25 am on Monday, July 11, 2011
Taxes won't go down, just the services we used to get in exchange for them. What will we be getting for our still very high property taxes anyway? A poorer education for our children, including UW rising tuition fees that will make it impossible for many to attend what used to be one of the best systems of higher ed in the country, elderly who are forced from their homes into expensive and demoralizing nursing homes, a degraded environment sold to the highest corporate bidder, and on and on. But I'm happy for you Joe that you have the income that allows you to even make Health Savings Account contributions and get some extra tax savings as a result. How about the people that aren't in your income bracket? Thank goodness we won't be supporting those layabout old and sick people with our taxes soon thanks to Governor Walker and Alberta Darling. But looking on the bright side -- as long as my car doesn't have to suffer gargantuan pot holes due to Walker's road project extravaganzas -- I'm okay with all of it.
CowDung
10:50 am on Monday, July 11, 2011
How much poorer will our children's education be? According to the Shorewood school budget proposals, it seems that class sizes aren't going to be increasing, and programs/classes aren't going to be cut.
As far as elderly being forced from their homes, do you really think that most seniors can afford to keep paying the property tax increases we have been seeing over the past few years? There's no way I'm going to be able to keep my home when I'm retired--after paying property taxes and healthcare, there will be nothing left for anything else...
Jay Sykes
11:02 am on Monday, July 11, 2011
@Mira Blusky... The change in the Health Savings Account laws, that allows one to deduct contributions, is now congruent with federal tax law. HSA's return cost control measures to the consumers of healthcare; exactly the opposite of any third party payer systems, that we sadly embrace to our general financial detriment.
Keith Schmitz
1:47 pm on Monday, July 11, 2011
The premise that we would somehow have control of our health care costs is at best fake empowerment, at worst a pathetic dose of snake of oil.
Bucky
5:25 pm on Monday, July 11, 2011
This guy is so full of chit .
RJP
5:02 pm on Monday, July 18, 2011
How long did it take you to come up with your insightful comment, Bucky?
Chuck
9:26 pm on Monday, July 11, 2011
I wonder how adding 26,000 jobs has caused the unemployment rate to increase?? What are these jobs and where are they?? This is a nice feel good article. Filled with general statements without any substance. My opinion is this man forgot he is only a politician. The majority of the voters put him where he is and can remove him if he does not do what the majority wants.
CowDung
8:40 am on Tuesday, July 12, 2011
It likely has something to do with having more than 26,000 people joining the workforce, or those jobs haven't been filled yet.
According to the Job Center of Wisconsin website, there are over 29,000 job openings currently available...
https://jobcenterofwisconsin.com/Default.aspx
Enough of the anger
8:55 am on Tuesday, July 19, 2011
A lot of those jobs listed are in Illinois and Minnesota
carolo
12:04 pm on Sunday, August 7, 2011
Scott Walker denies State Healthcare.......
http://thinkprogress.org/health/2011/08/05/289193/wisconsin-rejects-grants-from-health-law-despite-cutting-health-services-in-state-budget/