I was swinging a pick in the Virgin Islands when it happened. I’m speaking of Walker’s inauguration on Jan. 3. Since that time, Walker has already introduced eight bills to the now-Republican legislature, part of his effort to create jobs.
Walker promised to not only create 250,000 jobs, but also to alleviate the state’s $3 billion deficit. The slate of bills in front of the Legislature – which will most likely pass given Republicans’ significant majorities in both Senate and Assembly – will increase the deficit by $152 million.
Walker has not yet released a budget, but since Wisconsin’s state budget must be balanced, one can only look with fear at the impending cuts. In Jim Doyle’s last budget, the University of Wisconsin was the third largest single expenditure. Madison’s campus is sure to be targeted in spending reductions.
One of Walker’s initiatives is to battle it out with Illinois to attract businesses. The advertising campaign – “Escape to Wisconsin” – will cost an unspecified amount, and will yield uncertain results. Although the relative merits of Wisconsin to its southern neighbor are widely recognized, the basis of the campaign is a bit shaky. The rationale relies heavily on the fact that Illinois is also facing severe budget shortfalls, and is responding with tax increases – tax increases which have been touted by the media as absolutely gigantic, and, percentage-wise, (66 percent increase for income taxes, for example), they are.
However, the new tax levels are still lower than taxes in Wisconsin, Minnesota and Iowa in many instances (most states have differential tax rates). Illinois is approaching its deficit in a reasonable manner – the recession has caused revenues to decrease and expenditures to increase, so Illinois is increasing revenues and decreasing expenditures. But no, these tax increases will not completely close Illinois’ budget deficit; things really are that bad.
Illinois is also considering taking out loans. It is never easy to raise taxes, but if we expect government to deliver services, it requires the necessary revenue. Illinois is being responsible, not exorbitant. But perhaps this fight is a bit personal, as Illinois is receiving some of the re-allocated $810 million that would have gone toward high-speed rail development in Wisconsin.
Republicans, led by Rep. Robin Vos of Burlington, modified another of Walker’s bills to provide a tax break to any company that creates jobs. Specifically, each job created would be worth $1,000 in tax deductions. Any company would be eligible for the break. The original bill was directed more toward small businesses.
The actual job-creation benefits derived from the bill will probably be small, and small businesses with fewer than 10 employees are worried about seeing any benefits. In another aggressive tax reduction, Walker proposed a bill that would waive all corporate taxes for two years for businesses that relocate to Wisconsin – the only stipulation being that the business has not operated in the state for at least 10 years. But he is willing to compromise on the time line. Walker’s total proposed tax cuts will increase the deficit by $80 million per annum. Now that seems exorbitant.
Walker also proposed sweeping changes to the Chamber of Commerce, turning it into a public-private entity staffed by non-unionized private employees. This has upset unions, who fear public employees will lose their jobs. The measure is also seen as creating potential for political cronyism to creep back into the system.
During the campaign, Vos – now co-chair of the Joint Finance Committee – argued right-to-work is superior to union shops. This opposition to compulsory union membership also extends to unionization in general, and threatens efforts at Wisconsin universities to unionize and provide workers with fair wages and benefits.
Historically, the right of workers to demand fair wages and benefits was not supported by businesses or government, and standards of living suffered because of it. That Walker’s government is returning to an anti-worker stance is troubling. Unions have been instrumental in securing important benefits like worker compensation, pensions, insurance coverage and the university’s and the state’s recognition of unions should only be strengthened.
Walker’s slate of bills covered a range of issues, from auditing Medicaid spending to unionization on the pretext of attracting businesses. Yet because of them, the deficit will be increased by about 5 percent. The job creation benefits of the bills will be minimal. Talgo, the high-speed rail company, will lay-off its 125 employees and leave the state. UW-Madison will see significant funding reductions in the coming budget, and students and staff alike will suffer. Tuition will increase, salaries will decrease and fewer sections will be offered.
But at least Walker can make bumper stickers saying Wisconsin is better than Illinois.
Elise Swanson ([email protected]) is a sophomore majoring in political science and English.
