The next governor of Wisconsin, whether he is Milwaukee County Executive Scott Walker or Milwaukee Mayor Tom Barrett, will face a huge budget deficit. As it stands, the deficit is estimated to be $2.7 billion for the next legislative session. However, the key to solving the problem is not to raise taxes, but to increase efficiency in government spending and stimulate economic development.
Even looking beyond next year, the Wisconsin Policy Research Institute has projected that the 2012 fiscal year will see a deficit of $989 million, followed by $1.26 billion in 2013. Increases in state spending in areas like school aid, medical assistance, the UW System and correctional facilities are all inevitable in years to come.
Spending is increasing faster than revenue. That leaves the following options: raise tax rates or find ways to spend more efficiently. Generally, the public doesn't like increased taxes, so we need specific solutions from the candidates in order to achieve a balanced budget without dramatic tax increases. Barrett does that; Walker doesn't.
Both candidates propose a comprehensive review of all government operations, with Barrett pointing to large potential savings already identified by other states like Michigan, Iowa, California and Texas.
Barrett has talked about adopting technologies that will make the government run much more efficiently, like consolidating IT services, increasing e-payments for things like unemployment and retirement benefits, and providing incentives for filing taxes online. In addition, he has proposed creative solutions to reduce spending including cutting the offices of secretary of state and state treasurer and having employees from some state offices work four 10-hour days instead of the normal five eight-hour days, all of which will result in an estimated savings of $1.1 billion. Creative spending has worked in other states, and it will work for Wisconsin.
On the other hand, Walker has only put together a few options to reduce overall spending. He is proposing that state employees contribute to their own pensions and taxes, like private sector employees. California is now doing this and has realized a savings of $800 million. Wisconsin savings wouldn't reach this magnitude, but Walker estimates it could amount to $360 million.
The next governor will also have a lot of input on the proposed high-speed line between Madison and Milwaukee, which will be funded not just by Wisconsin, but the federal government. Walker is against the $810 million project, saying it will cost the state $7.5 million to operate annually, which would only worsen the deficit. Yet in Walker's plan for job creation, he has six specific ways to stimulate employment, one of which is to invest in infrastructure. For those of you keeping track, that's a bit of a contradiction.
Barrett supports the project, pointing to the sales and income taxes that the rail will generate. WISPIRG released a study saying that predicts about 13,000 new jobs as a result of the project. Massachusetts governor Deval Patrick touts investing in projects similar to high-speed rail as the main reason for helping his state maintain the highest rate of job growth in the nation.
Barrett has a clear vision of how to create jobs, including tax cuts and incentives for companies that will bring business to Wisconsin. He also proposes creating an Office of Job Creation that will report directly to the governor to identify areas of improvement.
Walker's ""plan"" is to create 250,000 new jobs in Wisconsin. Unfortunately, his record doesn't support his lofty goals. In addition to the conjecture, he's rejecting from high-speed rail, his history as County Executive shows little job innovation. In his victory speech following the primary elections, Walker boasted his creation of 1,000 jobs in Milwaukee County. Meanwhile, aviation consultant Michael Boyd said increases under Walker came from three new airlines starting up after Midwest Airlines cut flights by 40 percent.
Wisconsin needs someone who has done his homework and can implement an effective strategy. Walker doesn't have clear steps to create new jobs, and only has one legitimate idea for saving the state money. In contrast, Barrett has done a good job of outlining areas that need improvement and has a real plan to help stimulate job growth. When it comes to jobs and the economy, Tom Barrett is simply better than his GOP opponent, Scott Walker.
Mike Muggee is a senior majoring in finance and actuarial science. Please send all feedback to opinion@dailycardinal.com.
