State of the State, Far Too Late
 Last Wednesday night, Governor Jim Doyle delivered his annual "State of the State" address, in which he discussed the very real possibility of a significant economic slowdown. Shazam! The very next day, the Legislative Fiscal Bureau estimated the state would be short $300 to $400 million by the end of the current budget cycle.
In order to prepare the state for the possible downturn Doyle announced a "stimulus" package that seeks to grant around $15 million in tax cuts. At the same time, Doyle announced a new health care subsidy for small businesses estimated to cost $100 million a year - at a time when state revenues may be plummeting. What is particularly interesting about Doyle's speech is that he offers up very minor tax cuts as an economic "stimulus." Yet when formulating the budget last year, Doyle proposed over $1.7 billion in new taxes, including taxes on cigarettes, gasoline, and hospitals. Where was this recognition that lower taxes stimulate the economy then? Even if his new tax break proposals go into effect, they are still paltry compared to the avalanche of new taxes Doyle signed into law mere months ago. Apparently, he expects taxpayers to bail themselves out of the bad economy with a thimble. Even as minor as Doyle's tax cut proposals are, they are still like garlic to the vampires in the Democratic-controlled State Senate. Keep in mind - this is the same crew that believes the way to stimulate the economy in Wisconsin is to raise payroll taxes by $15.2 billion to fund a new government-run health plan. Before the ink on Doyle's speech was dry, Senate Majority Leader Russ Decker was admonishing the proposed tax cuts. Decker said that the state had to be "sensitive" to revenue losses, and that "I think the main focus should be putting people to work and putting them to work now." Decker and his caucus seem unaware that most "people" actually work outside of "government." He equates higher taxes with greater employment, which would be news to high-tax countries like Germany, who are experiencing record unemployment levels. Doyle's speech went on to push more intrusive government programs, such as banning smoking in all workplaces in Wisconsin and mandating autism coverage for state health plans - a mandate that would guarantee higher health care premiums for everyone. Doyle also wants to raise the state minimum wage which is likely to cost many minimum wage workers their jobs - just in time for the economic slowdown. And apparently, anything with the prefix "Bio" is something that must be subsidized with state tax dollars. As the legislature moves forward, it is clear that the budget shortfall will merely serve as an excuse for more spending. Don't look for programs to result in meaningful cost reductions: instead, watch carefully as the Governor and legislature raid segregated funds, take on more debt, and delay aid payments.
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