Focus Newsletter
Focus Newsletter The policy and politics of proposed state tax reform
May 30, 2013 • Vol. 2013 No. 10
$2.50 per issue
A second-term state representative proposes major income tax simplification that would cut all tax rates, reducing general fund tax collections by $420 million; shrink the number of tax brackets to three; and eliminate a host of tax... Read More
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Focus Newsletter - May 20, 2013 • Vol. 2013 No. 9Federal health reform and the state’s difficult Medicaid choice (II)
The 2013-15 state budget decides how to provide Medicaid to the poor in the wake of the Affordable Care Act. One approach follows ACA, extends coverage to more uninsured adults at higher cost, and funds it with increased federal aid.... Read More
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Focus Newsletter - May 20, 2013 • Vol. 2013 No. 8Federal health reform and the state’s difficult Medicaid choice (I)
With the January start of the federal Affordable Care Act, Wisconsin must rethink its Medicaid program as part of the 2013-15 state budget process. To what degree should the state adopt the federal approach? Where should it be more or... Read More
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Focus Newsletter - April 30, 2013 • Vol. 2013 No. 7After the rush: Who pays the Wisconsin income tax?
Who paid what during the recent income tax filing season will not be known for months, but information from state returns filed during 2012 is suggestive. Half of filers (51.4%) had 2011 adjusted gross incomes below $30,000 and paid... Read More
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Focus Newsletter - April 19, 2013 • Vol. 2013 No. 6Spring cleaning checklist: Basement, garage, income tax
Whether it is dislike for burdensome regulation and complex tax law or an urge to do some “legislative housekeeping,” several state lawmakers are looking to clean up a state income tax complicated by years of tinkering. Tax... Read More
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Focus Newsletter - March 25, 2013 • Vol. 2013 No. 5State budget sticking points (II): Debt and deficits
With a Republican governor and legislature, intraparty disagreements over the pending 2013-15 state budget are to be expected. One such area is state debt, which more than doubled over the past decade and approached $13.6 billion (b)... Read More
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Focus Newsletter - March 15, 2013 • Vol. 2013 No. 4Fiscal improvement, secure majorities lead to budget sticking points (I)
Governor Scott Walker’s (R) second state budget faces a different environment than his first in 2011. A state surplus and secure majorities give Republicans, especially senators, more leeway to question administration proposals.... Read More
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Focus Newsletter - February 28, 2013 • Vol. 2013 No. 3A big-picture look at the state’s proposed 2013-15 budget
The governor’s proposed 2013-15 budget is now before the legislature. The two-year budget would spend $30.0 billion (b) from the general fund and $68.0b from all sources. General fund expenditures would grow 3.3% in both 2014 and... Read More
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Focus Newsletter - January 24, 2013 • Vol. 2013 No. 2State of the state (II): Jobs, firm creation, and wages
Wisconsin job growth lagged the nation over the last two years, though manufacturing and professional/business services outperformed. Long-term job growth relies on new business formation, an area where Wisconsin lags significantly. The... Read More
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Focus Newsletter - January 23, 2013 • Vol. 2013 No. 1State of the state (I): Job talk vs. job facts
Political leaders assess the health of their states each year. Gov. Scott Walker (R) and legislative opponents did so in mid-January, both emphasizing jobs. However, neither recognized that slowing employment growth is a long-term trend... Read More
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Focus Newsletter - December 31, 2012 • Vol. 2012 No. 26Cliffs, holes, and new budget peaks to climb
To improve its state financial health and sustainability, Wisconsin has to clear several fiscal peaks. So far, it has balanced the 2011-13 budget without a large carryover “structural deficit.” However, new financial... Read More
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Focus Newsletter - December 17, 2012 • Vol. 2012 No. 25Here come 2012-13 property tax bills (II)
With local property tax bills arriving for 2012-13, it is now possible to project that gross levies statewide will rise about 0.6% to $10.45 billion; net, after state tax credits, the increase is estimated at 0.7%. Last year, that... Read More
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Focus Newsletter - December 14, 2012 • Vol. 2012 No. 24Here come 2012-13 property tax bills (I)
As local budgeting for 2013 ends, the calendar turns to mailing property tax bills. How much they will rise or fall often depends on local conditions, but two clues are now available. Statewide, school taxes are rising 0.2% to $4.66... Read More
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Focus Newsletter - December 7, 2012 • Vol. 2012 No. 23Still tight: First look at the next state budget
Before every new state budget, the governor is required by Nov. 20 to recap spending requests and projected revenues for the coming two years. The latest report shows moderate revenue and expenditure growth in 2013-15. Nevertheless, the... Read More
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Focus Newsletter - November 27, 2012 • Vol. 2012 No. 22Nonpartisan messages from November voters
Surprisingly little changed as a result of partisan elections at the national or state levels. But referenda tell a different story. Of 38 school-finance-related measures, Wisconsin voters surprised many by backing over 70% of them.... Read More
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Focus Newsletter - November 13, 2012 • Vol. 2012 No. 21Wisconsin's coming choice - grasshopper or ant?
Over the past three decades, state officials of both parties have often budgeted to the brink, unable to maintain the reserves fiscal experts recommend as necessary protection in the case of severe recession. Entering the most recent... Read More
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Focus Newsletter - October 25, 2012 • Vol. 2012 No. 20Principles and plans for income tax reform
Comprehensive state tax reform has not occurred in decades. With state finances showing signs of improvement, a joint legislative committee is studying possible state income tax reform. At their invitation, WISTAX shared with committee... Read More
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Focus Newsletter - October 5, 2012 • Vol. 2012 No. 19New fed finance figures (II): Spending up
New Census figures show Wisconsin state-local spending rose 2.9% in 2010 and claimed 22.0% of personal income. That was 23rd highest among the states and the highest share of income since at least 1993. In 2009 and 2010, state... Read More
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Focus Newsletter - September 28, 2012 • Vol. 2012 No. 18New fed finance figures (I): Tax-hike fallout
New figures from the US Census show how state tax increases, particularly on business and tobacco in 2009, affected Wisconsin’s tax burden and rankings. State-local taxes rose from 11.2% of income, a modern low, to 11.7% in 2010.... Read More
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Focus Newsletter - September 18, 2012 • Vol. 2012 No. 17College and career readiness need work
An Iowa testing firm that administers the ACT college entrance exam reports that only 31% of Wisconsin’s 2012 high school graduates are prepared to succeed in four courses typically taken by college freshmen. The percentage is... Read More
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Focus Newsletter - September 12, 2012 • Vol. 2012 No. 16Canary in the school mineshaft?
The financial reserves a school district has—its fund balance—can help evaluate its fiscal health. Total fund balances statewide have been rising for years—from $1.20 billion (b) in 2003 to $1.86b in 2011. They now... Read More
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Focus Newsletter - August 22, 2012 • Vol. 2012 No. 15Q&A: Quadrennial clockwork and federal finances
Partisan rhetoric makes it difficult to know the truth about federal debt and the future of Medicare and Social Security. US debt held by the public reaches 73% of GDP this year vs. 35% in 2000. Medicare “outgo” has exceeded... Read More
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Focus Newsletter - August 10, 2012 • Vol. 2012 No. 14Property values skip recovery, drop for fourth year
For the fourth consecutive year, the total market (“equalized”) value of Wisconsin property fell, this time 3.2% to $471.1 billion. Preliminary data for 2012 from the Dept. of Revenue show residential values were off more... Read More
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Focus Newsletter - July 31, 2012 • Vol. 2012 No. 13Causes and cures of voter dissatisfaction
Public dissatisfaction with legislative performance may be at record highs, but a major change in the election calendar (an August 14 primary!), legislative redistricting, and increased influence by savvy political activists could... Read More
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Focus Newsletter - July 20, 2012 • Vol. 2012 No. 12The states and school spending in a recession
When tax revenues dropped during the recession, state aid for schools was cut in 40 states. Yet overall per pupil spending still increased in 2009-10, albeit slightly. Nationally, it was up 1.1%, though salaries (0.5%) and benefits... Read More