New data released Monday by the Department of Public Instruction (DPI) show yet another increase in the percentage of students meeting the income requirement to receive free or reduced-price school meals in Wisconsin's public schools – marking the eighth consecutive year that the percentage has increased. The DPI data for the 2011-'12 school year show that 353,339 students in the state were identified as being eligible for free- or reduced-price meals – an increase of 7,155 students or 2.1 percent compared to the previous school year.
We’ve note on many previous occasions that Census Bureau data show that child poverty has been growing in Wisconsin for a number of years, but the most recent Census data is from 2010. The school meal statistics were collected in October 2011, and although they don’t conclusively prove that poverty is still growing, they certainly reflect the long increase in economic hardship and indicate that it does not appear to be abating.
Monday, March 19, 2012
Friday, March 16, 2012
Another Look at Wisconsin’s Job Trends (and the Potential Political Implications)
Journal Sentinel Article Charts the WI, National and Midwest Job Trends
In case you haven’t seen today’s Journal Sentinel, it has a very good article by Craig Gilbert about the employment trends in Wisconsin – including some great graphs comparing job trends in our state with our neighbors and the national data. It shows very dramatically how Wisconsin has trailed the rest of the nation in job creation over the last year, and also the rest of the upper Midwest.
Thursday, March 15, 2012
"The Case of the Missing $96 Billion in Corporate Taxes"
A blog post yesterday by Citizens for Tax Justice (CTJ) noted that the U.S. Treasury Department’s latest monthly statement contains the startling news that Treasury has slashed by 28 percent the amount that it expects to collect in corporate taxes in 2012, from $333 down to $237 billion.
“With such a dramatic revision, one might expect that lagging corporate profits or a sudden economic disruption is to blame. In reality however, corporate tax revenue continues to limp in spite of the fact that corporate profits have rebounded to record highs. If corporate profits are not behind this $96 billion drop in expected corporate tax revenue, then what is?”
CTJ cites two explanations – the practice of multinational corporations to move profits offshore, and corporate tax breaks for accelerated depreciation. It’s important to understand the corporate tax trends and underlying factors before the President and Congress tackle corporate tax reform and potentially pass up an opportunity to use those reforms to reverse the sharp drop in this important but dwindling revenue source.
Read more in the CTJ blog post.
Monday, March 12, 2012
Revised Proposals for Changing BadgerCare Would Save $36.5 Million GPR
JFC Meets Wednesday to Review Modifications to Cost-cutting Plan
The Joint Finance Committee (JFC) is scheduled to meet this Wednesday to review revisions that the Department of Health Services (DHS) has recommended in its plans for cutting the cost of BadgerCare. The changes to the plan approved by the JFC in November were made by DHS as a result of the negotiations it is engaged in with federal officials in the state’s effort to get a waiver of provisions in the federal health care reform law requiring states to maintain current eligibility standards, procedures and premiums.
The new summary and analysis released late today by the Legislative Fiscal Bureau indicates that the revised plan would reduce state General Fund spending by about $36.5 million GPR. Although that is substantially less than the $90.2 million GPR estimated savings from the initial DHS plan, it is more than enough to close the Medicaid shortfall after it was revised downward in January. (The cost-savings projections noted above do not include the potential savings from a separate DHS proposal that would create a new BadgerCare coverage plan, with reduced benefits and much higher co-pays.)
Read more about the proposed BadgerCare changes in today’s WCCF Blog post.
Jon Peacock
The Joint Finance Committee (JFC) is scheduled to meet this Wednesday to review revisions that the Department of Health Services (DHS) has recommended in its plans for cutting the cost of BadgerCare. The changes to the plan approved by the JFC in November were made by DHS as a result of the negotiations it is engaged in with federal officials in the state’s effort to get a waiver of provisions in the federal health care reform law requiring states to maintain current eligibility standards, procedures and premiums.
The new summary and analysis released late today by the Legislative Fiscal Bureau indicates that the revised plan would reduce state General Fund spending by about $36.5 million GPR. Although that is substantially less than the $90.2 million GPR estimated savings from the initial DHS plan, it is more than enough to close the Medicaid shortfall after it was revised downward in January. (The cost-savings projections noted above do not include the potential savings from a separate DHS proposal that would create a new BadgerCare coverage plan, with reduced benefits and much higher co-pays.)
Read more about the proposed BadgerCare changes in today’s WCCF Blog post.
Jon Peacock
Thursday, March 8, 2012
Wisconsin on Pace to Create 250,000 New Jobs by 2056
Wisconsin’s economy is growing so slowly it could take the state nearly half a century to create the 250,000 new private sector jobs that Governor Walker pledged -- if job growth continues at the average rate since the end of 2010.
New figures released today show that between December 2010 and January 2012, Wisconsin gained a paltry 6,000 jobs in the private sector. To be on track to create 250,000 jobs over four years, Wisconsin would have had to gain jobs at a pace eleven times that fast. The chart below shows how far off pace Wisconsin is from the goal of creating 250,000 new private sector jobs.
New figures released today show that between December 2010 and January 2012, Wisconsin gained a paltry 6,000 jobs in the private sector. To be on track to create 250,000 jobs over four years, Wisconsin would have had to gain jobs at a pace eleven times that fast. The chart below shows how far off pace Wisconsin is from the goal of creating 250,000 new private sector jobs.
Credits for “Angel Investors” Could Be Expanded, but the Devil is in the Details
Should the state give special tax breaks to investors who sink money into start-up businesses? That’s a question the state Assembly is scheduled to take up next Tuesday, when it will consider a bill that would extend an income tax credit currently in place for “angel investors.”
Right now, angel investors get a state income tax credit of up 25 percent of the investments they make in new business ventures in Wisconsin, as long as the businesses meet certain requirements. Angel investors seek higher returns on their money than is available from traditional investments. These investors often bridge the gap between the self-funded stage of a business and the phase at which venture capitalists become involved.
Currently, the state has set aside $47.5 million in tax credits to be available to angel investors. At the current rate of use, that money will run out in 2013. The state Assembly is considering legislation (AB 601) which would increase the amount of credits available for investors. An amendment to the bill has been offered which would cap the amount of credits available at $100 million, up from the current level of $47.5 million.
Right now, angel investors get a state income tax credit of up 25 percent of the investments they make in new business ventures in Wisconsin, as long as the businesses meet certain requirements. Angel investors seek higher returns on their money than is available from traditional investments. These investors often bridge the gap between the self-funded stage of a business and the phase at which venture capitalists become involved.
Currently, the state has set aside $47.5 million in tax credits to be available to angel investors. At the current rate of use, that money will run out in 2013. The state Assembly is considering legislation (AB 601) which would increase the amount of credits available for investors. An amendment to the bill has been offered which would cap the amount of credits available at $100 million, up from the current level of $47.5 million.
Wednesday, March 7, 2012
A Budget Issue on Which the President and Wisconsin Republicans Can Agree
Earmark Transparency Bill Passes Easily in WI Senate, Moves to Assembly
In an unusual display of broad, bipartisan agreement, the Wisconsin Senate voted 30-3 Tuesday in favor of a bill that would require biennial budget bills to be accompanied by reports listing all the earmarks in the bill. SB 114, which now moves on to the Assembly, also prohibits budget conference committees from adding earmarks. At the national level, President Obama has pushed for similar legislation.
Earmark transparency is the kind of "good government" issue that often draws rhetorical support from lawmakers and citizens across the political spectrum, but which is likely to run up against a wall of unspoken resistance that protects the status quo. That's not to suggest that there aren't some legitimate questions and concerns about whether this seemingly straightforward requirement will always be practical and effective, but there's growing sentiment for allowing more sunlight to shine on the budget process.
In an unusual display of broad, bipartisan agreement, the Wisconsin Senate voted 30-3 Tuesday in favor of a bill that would require biennial budget bills to be accompanied by reports listing all the earmarks in the bill. SB 114, which now moves on to the Assembly, also prohibits budget conference committees from adding earmarks. At the national level, President Obama has pushed for similar legislation.
Earmark transparency is the kind of "good government" issue that often draws rhetorical support from lawmakers and citizens across the political spectrum, but which is likely to run up against a wall of unspoken resistance that protects the status quo. That's not to suggest that there aren't some legitimate questions and concerns about whether this seemingly straightforward requirement will always be practical and effective, but there's growing sentiment for allowing more sunlight to shine on the budget process.
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