Although Gov. Scott McCallum's overtures alluding to the need for state fiscal responsibility are encouraging, his proposals to reform the 2001-'03 state budget, if passed, stand to put the UW System and many county and municipal governments in a terrible financial spot.
Though McCallum, who presented his plan for solving the state budget crisis to the Legislature Tuesday, maintains that he does not \want these reductions passed on to students,"" a $50.5 million cut in the UW System's operating budget will clearly affect students on campuses across the state. Tuition will likely increase as the UW System Board of Regents looks for ways to balance its own budget. Though McCallum points out that any tuition increase of more than 10 percent must be passed by the Legislature's Joint Finance Committee, this still allows the government to raise tuition for out-of-state students to almost $9,000 per semester'not exactly something to celebrate.
Another significant fatality of McCallum's proposal appears to be the Madison Initiative, a vital project aimed at recruiting and retaining the best faculty, increasing student financial aid and building renovation, among other things. The effects of this cut may not emerge immediately, but they will within a few years'severely harming the quality of education at UW-Madison by limiting opportunities for students to interact with top-notch faculty members, for example.
Perhaps as important as the direct effects of McCallum's budget on UW-Madison is the future elimination of shared revenues, the money local governments receive from the state. According to Madison Mayor Sue Bauman, cuts in shared revenue will cost the city of Madison $16 million annually by 2004. This loss in revenue will affect everything we receive from the city, from garbage pickup and snow removal to public health programs and housing assistance. Because McCallum insists upon not raising taxes in an election year, the quality of public services for all Wisconsin residents will decrease.
Supporters of McCallum's budget, such as Assembly Speaker Scott Jensen, R-Waukesha, claim that crucial public services, such as education and health care, will not be significantly hurt. But the cuts to the UW System and the elimination of shared revenues will do just that'but not as publicly or directly.
McCallum's budget proposal is an attempt to bolster him politically. He transfers the blame for the deficit from the state to local governments, accusing officials of being ""big spenders"" and living outside their means. With this rhetorical strategy, McCallum is attempting to shield himself politically from making the difficult budget choices, while painting a picture of himself as a man of government reform. Overall, McCallum's plan will cut $39 per resident in government services this year, producing real cuts in the services Wisconsin residents receive.
With a short-sighted eye toward avoiding tax increases in an election year, McCallum is mortgaging the state's long-term future with cuts to items like the Madison Initiative and shared revenue programs. State legislators and residents should keep the big picture in mind: These cuts will have real consequences down the road.
