But why waste time on crazy old threats to the government.. Here is a great article to reference:
http://www.journaltimes.com/news/op...cle_278f57e2-1e09-11e1-992a-001871e3ce6c.html
Commentary -- Republicans focus remains getting state back to work
State Rep. Robin Vos | Posted: Saturday, December 3, 2011 5:46 pm |
(10) Comments
When
Republicans took over the majority in the Assembly and Senate 11 months ago, we inherited a financial catastrophe. The former administration and L:Legislature used quick-fixes to balance the state's budget. Wisconsin taxpayers were then stuck with a pile of overdue bills and a $3.6 billion structural deficit.
The problems just didn't surface overnight. This fiscal mess came from eight years of poor financial planning by the Doyle administration.
There were raids on the transportation fund as well as an illegal raid of $200 million from the Injured Patients and Families Compensation Fund.
Former Gov. Jim Doyle used one-time federal stimulus money to plug any holes in the budget. He also never paid off a bill that was racking up interest of more than $4,500 a day: We owed the State of Minnesota $59.7 million plus to fulfill a tax reciprocity agreement. The nonpartisan Legislative Audit Bureau also found that Gov. Doyle's office transferred nearly $50 million from accounts that had no money. It was time to start paying our bills and reign in the out-of-control and unsustainable government spending without raising taxes.
By law, state legislators and the governor are obligated to balance the state's checkbook despite the unpaid bills from the prior administration. However, like the family checkbook, the state's doesn't include the future bills that are expected to come in. The nonpartisan Legislative Fiscal Bureau tracks that for the state by using GAAP accounting or Generally Accepted Accounting Principles.
For the past two decades, each Legislature has had at least a billion dollars in future liabilities and, unfortunately, the GAAP deficit grew again this year. The Legislative Fiscal Bureau puts the deficit at $2.94 billion for 2009-10 (fiscal year). The Department of Administration's budget brief papers estimate it to be $2.965 billion for 2010-11 and $2.99 billion for 2011-12.
What complicated matters this budget cycle was the pile of unpaid bills and the $3.6 billion deficit.
Without Doyle's leftover bills, the GOP Legislature could have pared the GAAP deficit by at least 10 percent.
In order to start to get our fiscal house in order, the state had to first pay off those old bills. We paid the State of Minnesota what we owed them plus interest. We repaid the $200 million to the Injured Patients and Families Compensation Fund. When additional revenue surfaced late in the budgetary cycle, we were responsible and paid off our bills and paid down our debt. We did not go on a spending spree.
What we did is set sound priorities for our state and made sure that essential state services were kept intact. We budgeted $1.2 billion more into medical assistance programs and developed a way to sustain the programs without impacting the people who need them the most. We also gave local governments and school districts a way to balance their own budgets. In essence, our governor and the Republicans in both chambers laid the foundation for future balanced budgets throughout the state.
We will continue to do what our state Constitution requires us to do: on an annual basis, our incoming revenues must take care of the state's expenses and that the state's checkbook must maintain at least a balance of $65 million. After passing a very fiscally sound spending plan that erased that $3.6 billion deficit, the LFB calculated that the state may have a surplus at the end of the two-year budget cycle. This will help us pay off more of the future liabilities so we can become more financially sound.
The incoming revenues to the state will definitely fluctuate and we'll make the necessary adjustments. However, there's one thing that won't change and that's our focus on getting Wisconsin back to work. After two special legislative sessions on jobs, state lawmakers have provided the ground work for a better economy and the creation of more private sector jobs. Getting people back to work and improving the state's economy are our top priorities. Economic recoveries don't happen overnight, but it seems every day another company is announcing plans to expand and to hire new workers. It is evident that our budgetary decisions are paying off and our reforms are working.
While it will take even more time to reverse the poor financial decisions from eight years, I believe in 11 months we've made amazing headway. We can be proud of what we've accomplished in a short time and the people of Wisconsin will be better off because of the fiscal decisions that we made this year and the ones we'll make in the year to come.
State Rep. Robin Vos, R-Rochester, is co-chairman of the Joint Finance Committee.
Read more:
http://www.journaltimes.com/news/op...e09-11e1-992a-001871e3ce6c.html#ixzz1fghenMUH