From Marilyn Jegerlehner
Monroe
The Monroe Times article, July 10, 2010, entitled "$2.5B state budget shortfall looms," is misleading. In March 2010 it was reported that, because of the high numbers of unemployed, the unemployment trust fund is also running a deficit. In March 2010, the unemployment trust fund was projected to hit $2.4 billion in 2011. This is a hidden deficit reported separately from the state's overall structural deficit. In June 2010, Wisconsin borrowed another $1.4 billion from the Feds for unemployment funds. Compounding the deficit is dropping state revenues as employers continue to shut their doors and lay off workers. Consequently, next session's legislators will be addressing both at least a $2.5 billion state budget deficit and billions in unemployment trust fund deficit. Of great concern is the pending payroll tax increase required in 2011 to pay back the billions while concurrently continuing to fund ongoing unemployment benefits. The hidden unemployment funds deficit's looming increase in unemployment fund payments will be an additional burden that decelerates both employers and the state's economic recovery. Generally accepted accounting principles are standards accountants use while calculating the financial statements of businesses and non-profit organizations. These standards are widely followed to maintain integrity in budgeting. Publicly traded companies are required to use generally accepted accounting principles by the Securities and Exchange Commission. Instead of using generally accepted accounting principles, Wisconsin's state government calculates its finances using month to month revenues and expenditures. This less stringent type of accounting ignores future obligations and covers up spending gimmicks used to balance bloated state government spending. Wisconsin's accounting fails to address its impeding debt. In the current budget, the state purchased $2.71 billion of goods and services with no means to pay for them when their bills come due. Thus, the state's structural deficit continues to grow into the future. Since Gov. Doyle took office, government spending has increased 32 percent; from $47.1 billion to $62.2 billion in the latest biennial budget. In fact, despite experiencing the worse recession in 30 years, spending increased over 6 percent in the current budget alone. Wisconsin has the highest structural deficit per capita in the nation. Businesses use generally accepted accounting principles to ensure their solvency. It's time for Wisconsin's government to do the same. If Wisconsin is to chart a financially sustainable path, we must be honest in our budgeting and get spending under control. To not do so will burden our children with an unsustainable amount of debt.
Monroe
The Monroe Times article, July 10, 2010, entitled "$2.5B state budget shortfall looms," is misleading. In March 2010 it was reported that, because of the high numbers of unemployed, the unemployment trust fund is also running a deficit. In March 2010, the unemployment trust fund was projected to hit $2.4 billion in 2011. This is a hidden deficit reported separately from the state's overall structural deficit. In June 2010, Wisconsin borrowed another $1.4 billion from the Feds for unemployment funds. Compounding the deficit is dropping state revenues as employers continue to shut their doors and lay off workers. Consequently, next session's legislators will be addressing both at least a $2.5 billion state budget deficit and billions in unemployment trust fund deficit. Of great concern is the pending payroll tax increase required in 2011 to pay back the billions while concurrently continuing to fund ongoing unemployment benefits. The hidden unemployment funds deficit's looming increase in unemployment fund payments will be an additional burden that decelerates both employers and the state's economic recovery. Generally accepted accounting principles are standards accountants use while calculating the financial statements of businesses and non-profit organizations. These standards are widely followed to maintain integrity in budgeting. Publicly traded companies are required to use generally accepted accounting principles by the Securities and Exchange Commission. Instead of using generally accepted accounting principles, Wisconsin's state government calculates its finances using month to month revenues and expenditures. This less stringent type of accounting ignores future obligations and covers up spending gimmicks used to balance bloated state government spending. Wisconsin's accounting fails to address its impeding debt. In the current budget, the state purchased $2.71 billion of goods and services with no means to pay for them when their bills come due. Thus, the state's structural deficit continues to grow into the future. Since Gov. Doyle took office, government spending has increased 32 percent; from $47.1 billion to $62.2 billion in the latest biennial budget. In fact, despite experiencing the worse recession in 30 years, spending increased over 6 percent in the current budget alone. Wisconsin has the highest structural deficit per capita in the nation. Businesses use generally accepted accounting principles to ensure their solvency. It's time for Wisconsin's government to do the same. If Wisconsin is to chart a financially sustainable path, we must be honest in our budgeting and get spending under control. To not do so will burden our children with an unsustainable amount of debt.
