Walker, GOP Tout Tax Income Cuts as State Budget Becomes Law

Describing the state's fiscal picture as a "sharp contrast from where we were two years ago," Gov. Scott Walker on Sunday signed the state's $70 billion budget into law.

During a signing ceremony at Catalyst Exhibits Inc. in Pleasant Prairie, Walker lauded the 2013-15 budget for providing nearly $1 billion in tax relief, $322 million in additional state aid for public schools, and $100 million in programs aimed at creating more jobs.

The Republican governor stressed that Wisconsin is in significantly better financial condition than it was when the last state budget was approved.

"Two years ago, Wisconsin faced a $3.6 billion deficit after years of using one-time revenues for ongoing spending. Wisconsin corrosively spent more than it took in. The state's rainy day fund was depleted and the state could not pay all the bills," he said in a message to the state Legislature. "Over 134,000 Wisconsinites lost jobs during the previous four years and the unemployment rate stood at 7.8 percent. Property taxes had gone up 27 percent over the previous decade.

"Together, we made some tough, but prudent, decisions to put our state back on track and lay the foundation for future growth," Walker wrote. "Now, we expect to begin the new fiscal year with a $670 million surplus, the largest opening balance in over a decade; we will have over $243 million in the rainy day fund, the highest rainy day fund balance ever. Most importantly, the unemployment rate dropped to 7 percent and continues to be below the national average."

Tax Cuts on the Horizon for Most

• Makes $650 million in income tax cuts made by reducing rates. Walker's office says the median family of four making $80,607 will save $345 over the next two years, and $1,725 over the next decade.

• Spends $118.6 million over the the next two years for economic development efforts administered by the Wisconsin Economic Development Corporation.

• Sets aside $31 million for expanding and improving work training services for individuals with the lowest incomes, while requiring able-bodied adults without dependents to meet federal work or employment training requirements in order to receive FoodShare benefits.

• Provides $380 million in new funds for public education and educational opportunities for students, including nearly $300 million for K-12 public schools.

• Expands school choice program statewide for low-income families. This fall, 500 students could participate; next year, the cap will be 1,000 students.

• Implements a cap on tuition at the University of Wisconsin System, the first two-year tuition freeze in the history of UW.

Budget Comes Under Fire From Democrats

While Walker and Republican lawmakers praised the spending plan, which takes effect Monday, Democratic leaders blasted the measure.

“Governor Walker’s extreme budget fails the middle class and will continue to take Wisconsin down the wrong path," Assembly Minority Leader Peter Barca (D-Kenosha) said in a statement Sunday. "Despite numerous opportunities to improve this budget, the governor and Republican legislators actually kept making it worse for public schools, property taxpayers and people who count on basic services. 

“The governor’s budget expands taxpayer-funded private voucher schools statewide while failing to restore historic public school cuts in the last Republican budget. It gives people making more than $300,000 more than 10 times the tax break it gives to the average working family. It rewards special interests who want to prey on consumers while middle-class families get left behind," Barca added.