The real state of the state? Stormy

February 1, 2011

By Kirsten Adshead  Wisconsin Reporter

MADISON — The blizzard that blew around Gov. Scott Walker’s first State of the State address Tuesday turned out to be appropriate.

After all, when reviewing the “state” of Wisconsin, it’s clear a storm is brewing.

In the month since they have taken control of the state’s government, Walker and the GOP-led Legislature have pushed through sweeping tort reform and tax breaks for businesses aimed at improving Wisconsin’s business climate and bringing in more jobs.

 

Wisconsin Capitol celebrating Green Bay Packers

In the process, they have irritated public unions, local governments and even district attorneys who believe that the state’s new tort reforms will make it harder to prosecute criminals.

At a news conference Tuesday, protesters argued that Walker’s initiatives are less about job creation than they are about rewarding campaign donors.

“We’re really sending out an SOS that there are no jobs in the jobs initiatives of the new administration and the Legislature,” said Robert Kraig, executive director of Citizen Action of Wisconsin.

“You have a jobless jobs agenda — and that’s the state of Wisconsin,” he said.

This is before the budget battle has even begun.

Walker’s budget plan is expected to be released Feb. 22.

Wisconsin faces a $3 billion-plus budget deficit that Walker has vowed to address without raising taxes.

That means cutting spending. And the services Wisconsinites want to protect most, such as education, are the state’s most expensive.

“We can no longer afford to turn a blind eye to the tough decisions ahead,” the governor said in his State of the State address. “Without swift corrective action, entitlement programs and legacy costs will eat up more and more of the operating budget. Failure to act only makes the problems worse in the future.”

A stronger economy backed by the tech bubble and booming housing market made it easier to deal with deficits in previous administrations, University of Wisconsin political scientist Barry Burden said.

This time around, “It’s going to have to be done (via) pure brute strength,” he said.

The danger for lawmakers is that, in balancing Wisconsin’s budget and addressing its weaknesses, they could weaken the state’s strengths.

Mike Knetter, president of the University of Wisconsin Foundation, recently said in an e-mail that Wisconsin has plenty of both:

"Our pros include a high quality of life (our real estate offers great recreation opportunities), proximity to Chicago (especially for the manufacturing corridor from Southeast Wisconsin up into the Fox Valley), a solid tradition of K-12 and higher education that produces a quality workforce, and one of the best research universities on the planet," Knetter wrote. 

"Our cons include above average state and corporate taxes for our region, above average skepticism/cynicism about business and wealth creation that can add many regulatory hurdles to job creation at state and local government levels, too many layers of government regulation, and our limited ability to reach major markets in a single trip."

Knetter said he believes, though, that the state can improve upon its weaknesses without impacting its strengths.

A lot depends upon the cooperation of those running local governments and the services that likely will feel the pinch from cuts, he said.

“When government subsidies to any sector are reduced, the near term implications are almost always negative,” he said. “However, if the sector responds by increasing efficiency, finding ways to support itself by increasing the value delivered to students, some good things can result as well. It can increase accountability which can have positive effects.”

A $3-billion deficit. Nervous unions and service providers. And a public that has shown in the past two elections that it is impatient and expects quick results. Otherwise, lawmakers will pay the price on Election Day.

The true “state of the state”?

Replied Burden, “I think it’s challenged.”
 

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