Like Nero fiddling as Rome burned, legislative leaders have been fiddling with versions of a constitutional formula — instead of telling the “Truth and Consequences” of the tough decisions ahead. TABOR (the Taxpayer Bill of Rights) by any name is a gimmick that ignores the impact of federal cutbacks on state and county budgets and escapes state accountability for county costs.
State and local governments are entering an unprecedented era of fiscal challenge, due to the financial mess in Washington. Is Madison paying attention? Or do they simply enjoy bashing our state by touting whatever tax ranking makes Wisconsin look the worst?
How will we meet the growing demands of an aging population in the face of skyrocketing medical costs and federal cutbacks? Over 25 percent of state revenues come from federal aid, including Medicaid (the second largest state expenditure after K-12 schools). The federal budget reconciliation bill recently adopted cut Medicaid, foster care and child support enforcement.
The latest administration proposal cuts nearly every domestic program: veterans medical care, energy conservation, education, housing and transportation. These cuts escalate over five years to 56 percent below 2006 funding, adjusted for inflation. More than four-fifths of Medicaid cuts simply shift costs to the states, with the largest cuts in 2008 and beyond.
How will a state revenue limit address the $2.12 billion state general fund structural deficit, or the projected $1.5 billion shortfall in the next biennium? How would a constitutional limit affect the state bond rating?
Moody’s Investor Service already rates state bonds as having a negative outlook.
By comparison, La Crosse and 13 other counties currently receive a higher bond rating than the state!
Some professional politicians wanted to dictate new constitutional limits to the average citizens on city councils, village, town and county boards, already under the most restrictive levy limits in the state’s history, imposed by the governor’s budget.
They simply couldn’t get the votes this time.
La Crosse County doesn’t need their advice on finances. Out of 72 Wisconsin counties we have the third-lowest operating tax levy per capita at $182 and a mill rate of only $3.74. If Wisconsin taxes per capita compared as well with other states it would rank 48th out of 50.
Legislators have extensive experience limiting revenues without taking responsibility. There’s been no increase in Shared Revenue since 1999 and none in Community Aids for human services since 1986. They promise to end future unfunded mandates, but we’ve heard that before. Counties aren’t causing the state’s financial problems; county property taxes have been the relief valve for the state budget for years.
The ultimate measure of a person is not where one stands in moments of comfort, but where one stands in times of challenge and controversy. The Taxpayer Protection Amendment in its various forms, only claims to protect taxpayers.
Who will protect the most vulnerable in society from the truth and consequences of federal cutbacks and state revenue limits?
Who will stand up to professional politicians who bash Wisconsin posing as taxpayers’ friends, while avoiding responsibility for the tough decisions ahead?
Steve Doyle is La Crosse County Board chairman. Steve O’Malley is county administrator.
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