MINNESOTA VS WISCONSIN -- Dated 01/04/2015. Kathy Miller at the Center for Tax and Budget Accountability makes an observation via e-mail: I dont know about you, but Im worried about what may happen to our state in the near future. One thing Ive learned at CTBA is that policies have real-world consequences. Take our neighboring states of Minnesota and Wisconsin, for example, bonded by geography, separated by politics. The states share common roots: both were settled mostly by German and Northern European immigrants; both have farm economies; and, until recently, both shared a populist progressive tradition. But the elections of conservative Scott Walker in Wisconsin and liberal Mark Dayton in Minnesota offer insight into what can happen when radically different economic policies are put in place. In 2013, Wisconsins lawmakers cut income taxes. Gov. Walker is known for attacking the collective bargaining rights of civil service unions, reducing property taxes, and cutting funds for infrastructure and education. Minnesota, on the other hand, raised the income tax on individuals making more than $150,000 a year, increased the tax on cigarettes, and voted to add new business taxes, including a tax on some labor conducted at businesses, such as repair work on farm equipment or maintenance of machines. So which state is doing better? Wisconsin has a projected gap of $396 million in its current budget - or about 1.2% of the spending planned for 2013 - 2015. The Wisconsin Legislative Fiscal Bureau pegged their budget deficit for the July 2015 - June 2017 budget at $1.8 billion. Wisconsin now sees crowded classrooms and teacher layoffs. Wisconsins unemployment rate is 5.2%. It ranks 34th for job growth. Minnesotas Department of Revenue recently announced that the states budget surplus has risen to $1 billion. The state sent $485 million more to public schools. Last year Minnesota lawmakers voted to grant in-home child care workers and personal attendants permission to form unions. Minnesotas unemployment rate in November was the lowest since 2001 - 3.7%. It is the fifth fastest growing state economy, with private-sector job growth exceeding pre-recession levels. Forbes rates Minnesota as the eighth best state for business based on a strong current economic climate and quality of life. It doesnt take a rocket scientist to ascertain which direction to take! At the Center for Tax and Budget Accountability, we are working on one vitally important fiscal issue after another: offering solutions to the pension crisis, re-framing education reform, alerting people to the looming fiscal cliff, and much more. Our voice will be more important than ever with the political changes in Springfield. If you care about these matters, now is the time to join the fight and speak out.
Posted on: Tue, 06 Jan 2015 02:34:47 +0000
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