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February 12, 2009

The Wednesday Update

February 12, 2009   Volume 3, Number 5     In This Issue: Stimulating a Cadaver, Making the Situation Worse
Wisconsin club For Growth

February 12, 2009
Vol. 3, Number 4

 Wednesday Update

In This Issue:

1. Stimulating a
    Cadaver

2. Making the 
    Situation Worse

3. Killing Jobs

4. Open Government

Stimulating a Cadaver

Anyone who has read a newspaper over the past six months recognizes why the American economy is hurting: the housing collapse caused the credit markets to seize up meaning  there is less money is in the economy to keep workers employed.  When unemployment rises, less tax revenue flows to government. At the same time the demand for state services increases. This chain of events has put a tremendous strain on the state budget which already carries a $5.7 billion deficit.

Yesterday, Wisconsin Senate Democrats who apparently don’t read the newspapers, voted to raise the state’s minimum wage to $7.60 per hour – a move that has been proven to increase unemployment. Once again, in order to “help” unemployment, clueless politicians have voted to make it worse.

But they’re not stopping there.  Dissatisfied with the federal government’s pork-laden “stimulus” plan, the Democrat-controlled Legislature is reheating some of their failed old ideas under the auspices of a “state” stimulus plan.  The plan seeks to fill the $600 million deficit caused by their reckless spending in the 2007-09 state budget.  Among the plan’s details:

  1. A new tax on hospitals
  2. A new “combined reporting” tax which taxes businesses on sales outside of Wisconsin;
  3. A new “streamlined sales tax,” which allows taxation of some items on the internet.

So for those keeping score at home, the plan’s core, in order, is:

  1. Tax increase
  2. Tax increase
  3. Tax increase

The plan gives Legislative Democrats the authority to spend the federal stimulus funds they believe are headed Wisconsin’s way, a direct challenge to Governor Jim Doyle, who set up a new 15-member department to push the money out the door before anyone questions where's it's going. 

Finally, the proposal calls for some amorphous “cuts” to state government – but given the growth in state spending over Doyle’s tenure, don’t count on it.  Wisconsin is still waiting for Doyle to get a third of the way to his 2002 promise of cutting 10,000 government jobs. There’s no reason to believe any meaningful reductions will be made during this economic crisis.


 

Top Ten Reasons Doyle will Make Milwaukee's Call Center Situation Worse

In the wake of the tragic death of 13-month old Christopher Thomas while under the state's supervision, the State of Wisconsin has decided to seize control of $51 million in Milwaukee County Human Services programs, citing years of mismanagement.  Yet anyone with a cursory knowledge of the Doyle Administration's track record should have little faith in the ability of the state to turn the ship around. 

A little trip down memory lane:

 

  1. The Badgercare Plus program, billed by Doyle as “budget neutral” came in $25 million over budget just months after implementation. 
  2. The Wisconsin Shares childcare program is rife with fraud
  3. Wisconsin failed IT projects have wasted over $186.4 million in taxpayer dollars.
  4. The state’s use of consultants in order to "save" money actually cost the state 18% more than state employees. 
  5. The state budget deficit has grown from $1 billion to $5.7 billion on Doyle’s watch.  
  6. Doyle exposed 435,000 Wisconsin residents to possible identity theft and cost taxpayers thousands of tax dollars for credit monitoring. 
  7. Doyle’s top aides have consistently abused their powers: (Commerce, PSC, DOT, DOA)
  8. Doyle’s ACE Initiative to streamline state purchases was unceremoniously ditched because it actually cost the state more money and raised serious questions about corruption inside the administration.
  9. Wisconsin’s economy grew at half the national rate 
  10. Doyle even denied crutches to a disabled child

     


It's Like They're Trying to Kill Jobs

At the same time the economy suffers from massive job losses, Governor Doyle’s administration continues to push nonsensical global warming mandates on businesses.  Undoubtedly, these new emission standards would be an invitation for industry to move to Illinois, or Florida, or Arizona, just to escape these wrongheaded mandates.

The Daily Reporter detailed some of the consequences of global warming hysteria, including how Wisconsin may be forced to adapt to California’s emission standards:

Tighter Wisconsin standards for greenhouse gas emissions could hurt the construction industry as much as they help the environment.

“Building new power plants and upgrading plants would create new opportunities for the industry with green infrastructure,” said Jim Boullion, government affairs director for The Associated General Contractors of Wisconsin. “But what we find problematic with possibly following a California model has to do with off-road construction equipment and diesel engines.

“The cost factor on companies would be tremendous, and we’re already facing a significant reduction in construction this year.”

The California model stems from drafts of the Midwestern Greenhouse Gas Reduction Accord, which is a collaboration among six states — including Wisconsin — and the Canadian province of Manitoba to reduce emissions, said Scott Manley, environmental policy director for Wisconsin Manufacturers & Commerce. He said the accord, which the states and province agreed to in principle in 2007, could be finalized this year.

According to WMC, Wisconsin industry is much more reliant on manufacturing than California, so businesses here would be damaged to a much greater degree by tighter emissions standards.  Furthermore, Wisconsin generates over 65% of its energy from coal – as opposed to California, which gets less that 1% of its energy from coal. 

 


Four State Reps for Open Government

Wisconsin Club for Growth gives a big Atta Boy and Girl to the sponsors of several proposals that would bring more transparency and accountability to state spending. Reps. Bill Kramer of Waukesha, Leah Vukmir of Wauwatosa, Rich Zipperer of Pewaukee and Brett Davis of Oregon will offer bills to:

  • Create a data base/website of all state expenditures.
     
  • Require ‘zero-based’ budgeting every 10 years by 2015.
     
  • Require all Joint Finance Committee meetings to be available in real time on the Legislature’s website.
     
  • Require all ‘earmark’ provisions of the budget to be disclosed.
     
    Way to go!

 

 

 

 

 

 


 


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