The good news is that Wisconsin and the Green County area may not be experiencing the financial crisis to the same magnitude as it is being felt nationally. A story in the Times a week ago told of how local banks and businesses, while stressed by the financial crisis, weren't likely to be hit nearly as hard as in other parts of the country.
The bad news is that, while the quick hammer may not fall, the hit to the state economy has been long, slow and persistent.
The Wisconsin Taxpayer Alliance, a nonpartisan, nonprofit, public-policy research firm, last Friday released a report detailing the state economy's steady leaks. It's a leak likely to have significant ramifications on the state budget soon.
"Wisconsin's economy has been lagging the nation for some time," WISTAX said in its report. "A recent state forecast and federal data both suggest Wisconsin's economy was lagging the nation before the D.C. mess."
Personal income has grown slower than the national average since 2006, and is projected by the federal Department of Revenue to continue to trail through at least 2011. This year, according to the DOR, the average personal income of Wisconsin residents will increase just 3.4 percent - nationally, the percentage is projected at 4.3 percent. Next year, Wisconsin incomes are projected to grow by only 2.6 percent - 0.7 percentage points lower than the national number. Personal income includes wages, government payments and investment earnings, such as dividends and rent.
Past DOR forecasts had been for personal income growth to reverse course this year. That now is not expected until at least 2010.
Also troubling for the state economy is the gap between per capita personal income (PCPI) for the state and nation. Wisconsin's PCPI usually trails the U.S. by 3 to 4 percent, according to WISTAX. Twice, Wisconsin has fallen 7 percent or more behind the nation - once during the Depression, and again in the 1980s when manufacturing and agricultural sectors were hit hard. The gap in 2006 was 6.2 percent, and last year it was 6.0 percent. These are levels not seen in 20 years, WISTAX reports.
The impact already is being felt in state tax collections. The 2007-08 tax revenue increase was only 3.4 percent - nearly 2 percent less than during the previous three years. Growth was even weaker - 1.7 percent - for the three taxes on income and sales that comprise almost 91 percent of all collections, according to WISTAX.
That growth is projected to continue to be stunted for the 2009-11 budget, which will pose even more headaches for the Legislature.
WISTAX points to state's growing senior population relative to working-age population, shrinking job counts and slow wage growth as culprits in the economic struggle.
All of this points to the necessity for legislative candidates to articulate how they will promote the creation of good-paying jobs and encourage young professionals to migrate and return to Wisconsin.
The bad news is that, while the quick hammer may not fall, the hit to the state economy has been long, slow and persistent.
The Wisconsin Taxpayer Alliance, a nonpartisan, nonprofit, public-policy research firm, last Friday released a report detailing the state economy's steady leaks. It's a leak likely to have significant ramifications on the state budget soon.
"Wisconsin's economy has been lagging the nation for some time," WISTAX said in its report. "A recent state forecast and federal data both suggest Wisconsin's economy was lagging the nation before the D.C. mess."
Personal income has grown slower than the national average since 2006, and is projected by the federal Department of Revenue to continue to trail through at least 2011. This year, according to the DOR, the average personal income of Wisconsin residents will increase just 3.4 percent - nationally, the percentage is projected at 4.3 percent. Next year, Wisconsin incomes are projected to grow by only 2.6 percent - 0.7 percentage points lower than the national number. Personal income includes wages, government payments and investment earnings, such as dividends and rent.
Past DOR forecasts had been for personal income growth to reverse course this year. That now is not expected until at least 2010.
Also troubling for the state economy is the gap between per capita personal income (PCPI) for the state and nation. Wisconsin's PCPI usually trails the U.S. by 3 to 4 percent, according to WISTAX. Twice, Wisconsin has fallen 7 percent or more behind the nation - once during the Depression, and again in the 1980s when manufacturing and agricultural sectors were hit hard. The gap in 2006 was 6.2 percent, and last year it was 6.0 percent. These are levels not seen in 20 years, WISTAX reports.
The impact already is being felt in state tax collections. The 2007-08 tax revenue increase was only 3.4 percent - nearly 2 percent less than during the previous three years. Growth was even weaker - 1.7 percent - for the three taxes on income and sales that comprise almost 91 percent of all collections, according to WISTAX.
That growth is projected to continue to be stunted for the 2009-11 budget, which will pose even more headaches for the Legislature.
WISTAX points to state's growing senior population relative to working-age population, shrinking job counts and slow wage growth as culprits in the economic struggle.
All of this points to the necessity for legislative candidates to articulate how they will promote the creation of good-paying jobs and encourage young professionals to migrate and return to Wisconsin.
