FUBAR Financing

 

by Kerry Thomas

July 25, 2009

 

 

Methinks wisconsin State Senator Jim Holperin doth protest too much.

 

In his attempts to rebut a critique by Tom Tiffany of his first six months in the Democrat-controlled Wisconsin Senate, Senator Holperin parrots the Democrat talking point that the Democrats “eliminated a $6.6 billion deficit, and left the state with a $270 million surplus.

 

Two observations here:

 

  1. If there’s going to be a $270 million surplus, that means Wisconsin taxpayers will be paying $270 million more in taxes than it will take to pay for Democrat spending. I don’t suppose the taxpayers will get any of that surplus money back, will we?

 

  1. The only way the Democrats running this state can say they’ve balanced the budget is by using FUBAR financing, not GAAP accounting.

 

Where else but in the minds of these liberal politicians can you steal money from segregated funds, including stealing money from the e911 emergency dispatch fund, and call it balancing the budget? Where else but in the minds of liberal politicians can you borrow $2.2 billion and say you’ve balanced your budgets? Where else but in the minds of liberal politicians can you increase spending by 7% and call it a cut?

 

Senator Holperin says suspending Stewardship funding for two years would “save only $7 million saving $7 million on Stewardship would not eliminate one single tax or fee increase. You'd need $2 billion more in cuts to do that.

 

So let’s see.  If you save “only” $7 million from one program, that wouldn’t be enough to balance the $6.6 billion budget deficit?  Shazam!  Good enough reason not to save $7 million.

 

Senator Holperin asks how sending more state money to Milwaukee private schools make sense?  Here’s how, Senator.

 

First, it’s called School Choice, choice being the operative word in this program.  Parents are given a certain dollar amount to be paid to the school of their choice in order to pay for their child’s education.  These dollars are less than the total amount spent per-pupil by the local public school.  If the parents choose to send their child to a private school, the private school gets the money.  It also means the public school doesn’t have to spend the higher per-pupil dollars to educate that child.  The child gets a better quality education, and the public school spends less.

 

As Tiffany pointed out “The Wall Street Journal estimated taxpayer savings at $180 million since school choice originated. “

 

Senator Holperin asks “What about Trinity Lutheran? Where's the state help for them?”  Good question, Senator.  Why won’t you expand School Choice state-wide?  (Oh, that’s right.  Some of the Democrats’ biggest campaign contributions come from the teachers’ unions, who’d actually have to compete against private sector schools for those School Choice dollars.)

 

According to Senator Holperin “five programs make up about 83% of all general tax-supported spending (school aid, medical assistance, courts/prisons, the University, and local aid (shared revenue))….’belt tightening’ means cutting some or all of these five programs. You can't get enough spending cuts to prevent tax increases any other way.

 

Deficits aren’t caused by a lack of revenue.  Deficits are caused by excessive spending.

 

No one is suggesting the State cut all funding for any of these five programs.  Simply freezing the funding levels or reducing them by a small percentage would go a long way towards balancing the budget.

 

Senator Holperin’s statement is true - if you use FUBAR financing.

 

Under bureaucratic FUBAR financing, simply spending the same dollar figure from one year to the next is a spending cut.  Actually reducing the dollars spent, even if only by 1-2%, is too drastic a measure.  But Senator Holperin insists his 7% spending increase balanced the budget.

 

And of course Democrats couldn’t possibly find any way to reduce, or just freeze, the UW system budgets.  (That was one of those five programs that make up for 83% of tax-supported spending.) 

 

I noticed Senator Holperin never addressed Tiffany’s claim that the Senate Democrats added 21 policy items and 24 pieces of pork to their budget, which will cost Wisconsin taxpayers over $48 million.  I guess that must have been another one of those “only $48 million” items, right Senator?

 

One other little item that slipped its way into the budget battle was the repeal of the QEO.  No longer will school districts be forced to ask the taxpayers before they raise spending.  No longer will teachers’ unions be forced to live with a 3% increase in pay every year.  Can you say “hike my property taxes.”

 

Why is it that government bureaucrats can never manage to live within our means?  Remember how the Lottery was going to reduce property taxes?  Remember about 25 years ago when Wisconsin faced a similar budget situation?  I’m sure Senator Holperin does, as he was in the Assembly back then.  The Democrat solution then was to “temporarily” raise the state sales tax from 4% to 5%.

 

FUBAR financing.  Available wherever liberal Democrats control your government.