There seems to be a widespread perception that the state's looming $3 billion deficit is purely a spending problem brought on by legislators running amok and spending our money like drunken sailors. Let's examine some of the myths that lie behind that view of government spending in Wisconsin.

Myth: Wisconsin has a bloated bureaucracy. If we just cut the "fat" from the state bureaucracy we would be well on our way to balancing the state budget.
Reality: Spending for state employees is a very small fraction of the Wisconsin budget. In fact, according to 2001 data from the Census Bureau, only eight other states have fewer state employees per capita. That isn't to say that cutbacks in state positions should not be explored. But, even if half of all state jobs were eliminated - extremely unrealistic by anyone's measure - it would address less than half of the state's budget deficit.

Myth: We hear all the time that Wisconsin is a high tax state. Obviously we must also be near the top in state spending.

Reality: Actually, our spending is a bit above average, but not far out of line with other states. Relative to income, Wisconsin ranked 18th in general state and local spending in fiscal year 2000. Despite relatively high tax levels, our spending ranking is more moderate because we rely less on fees and get less federal aid than other states. The state does spend notably more than other states on roads (40 percent above the national average) and education (15 percent above the national average).

Myth: The Legislature has been on a spending binge.

Reality: Most of the spending growth during the past decade is a result of the state assumption of two-thirds of school costs and increased spending for corrections. But the increased funding for schools resulted in a reduction in school costs on the property tax, where Wisconsin is one of the top top states in taxing. Putting aside those two areas of spending growth, other state expenditures have grown an average of just 1.8 percent per year since 1994.

Myth: The deficit is not a revenue problem; it is strictly a matter of spending.

Reality: A review of state tax trends shows that Wisconsin cut taxes by more than $700 million annually just a couple of years ago. Thanks to those cuts and the economic downturn, total general fund taxes dropped by $900 million annually since 2000. If 2002 taxes had remained at the amounts collected in 2000, the state's deficit would be less than half its current level.

In short, the Legislature has not been on a spending binge. Far from acting like drunken sailors, politicians have been heeding the wishes of their constituents by investing in things like education that are very important to voters and to the future of our state.

What's not a myth is that Wisconsin is in deep fiscal trouble. But, balancing the ledger by only reducing spending will result in other problems like greatly diminished public services and higher property taxes. Finding our way out and maintaining the quality of public services our citizens have come to expect will require a judicious blend of targeted spending reductions and revenue growth.

Jon Peacock is director of the Wisconsin Budget Project for the Wisconsin Council on Children and Families. The Wisconsin Budget Project analyzes the impacts of state fiscal policies on low- and moderate-income people in Wisconsin.

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