"Walker's Wisconsin budget forecast looks rosy"

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    Nov 20, 2012 11:38 PM GMT
    http://www.cbsnews.com/8301-505245_162-57552678/walkers-wisconsin-budget-forecast-looks-rosy/

    "Gov. Scott Walker's administration told the Legislature on Tuesday that modest economic growth coupled with "frugal management" means Wisconsin is poised to end the two-year budget cycle in June with a net $283 million surplus.

    Two years ago at this time, as Walker prepared to come into office, the state faced a roughly $3 billion budget shortfall. This year the state has a net $277 million surplus, the largest since 2001, Huebsch said."
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    Nov 20, 2012 11:47 PM GMT
    This is probably still true.

    http://www.factcheck.org/2012/04/the-whole-truth-in-wisconsin-air-wars/
    Partial Truth: “We wiped out a $3.6 billion deficit.” — Walker in a campaign ad.

    What’s Left Out: That’s true if you use the cash accounting method. However, using Generally Accepted Accounting Principles (GAAP) accrual accounting methods, there is a $3 billion deficit in Wisconsin’s budget in each of the next two years. While it’s perfectly legitimate for Walker to cite the cash accounting figure, that may confuse some folks who may remember that Walker used the GAAP figures to argue for cuts in state health programs.
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    Nov 21, 2012 12:50 AM GMT
    Are the GAAP figures available for comparison to Walker's current accounting method?
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    Nov 21, 2012 1:25 AM GMT
    http://sunshinereview.org/index.php/Wisconsin_state_budget

    http://www.politifact.com/wisconsin/promises/walk-o-meter/promise/561/require-use-of-accepted-accounting-principles-to-b/We examined Walker's first budget, the 2011-13 biennial budget, to see if he lived up to his promise to balance the budget using GAAP.

    There's a chart every two years in the state budget demonstrating the bottom line under GAAP. The chart in the Walker administration's Budget in Brief shows that the 2011-13 budget was not close to balanced by that standard.

    In fact, the document shows that based on GAAP accounting, the state would have been left with a deficit of $3 billion by 2012-13 under Walker's budget. That compares to the $2.9 billion GAAP deficit he inherited at the end of Doyle's term, the state's financial statements show.


    "Do as I say, not as I do."
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    Nov 21, 2012 12:10 PM GMT
    q1w2e3 saidhttp://sunshinereview.org/index.php/Wisconsin_state_budget

    http://www.politifact.com/wisconsin/promises/walk-o-meter/promise/561/require-use-of-accepted-accounting-principles-to-b/We examined Walker's first budget, the 2011-13 biennial budget, to see if he lived up to his promise to balance the budget using GAAP.

    There's a chart every two years in the state budget demonstrating the bottom line under GAAP. The chart in the Walker administration's Budget in Brief shows that the 2011-13 budget was not close to balanced by that standard.

    In fact, the document shows that based on GAAP accounting, the state would have been left with a deficit of $3 billion by 2012-13 under Walker's budget. That compares to the $2.9 billion GAAP deficit he inherited at the end of Doyle's term, the state's financial statements show.


    "Do as I say, not as I do."


    Which is to say that the budget if looked at from a GAAP perspective originally would have been so much worse - so this progress is in fact, progress.

    I would agree though that all governments should move towards GAAP but then if they did so, it would be absolutely apparent to all how unsustainable many of these entitlements are - from social security to medicare.
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    Nov 21, 2012 12:35 PM GMT
    Which is to say that the AP article in the OP is quoting the same wrong talking points by Walker's administration regarding comparing apples and oranges with the $3 billion and $277 million.
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    Nov 21, 2012 12:40 PM GMT
    q1w2e3 saidWhich is to say that the AP article in the OP is quoting the same wrong talking points by Walker's administration regarding comparing apples and oranges with the $3 billion and $277 million.


    Again, given the cuts that he made and you apparently oppose, the deficit would have been so much worse. As even the left leaning Politifact points out:

    The state budget, under the Wisconsin constitution, must be balanced. But the cash accounting method the state uses allows gimmicks to bring the budget into balance. For instance, the state has in years past shifted payments to local governments into the next fiscal year in order to make the budget appear balanced in the present, said Robert Lang, director of the non-partisan Wisconsin Fiscal Bureau.

    Walker balanced the budget, and in a way that eliminated the state's structural deficit, under the manner the state has long used.


    So yes, let's use apples to apples.
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    Nov 21, 2012 12:48 PM GMT
    Comparing apples to apples, the day Walker took office, Wisconsin was scheduled to have a surplus of $56.3 million.

    http://bdgrdemocracy.files.wordpress.com/2012/05/2011_01_31vosdarling1.pdf


    And yes, by law Wisconsin is supposed to have a balanced budget, which Doyle did as well. icon_lol.gif
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    Nov 21, 2012 12:52 PM GMT
    And here's to deferred payment about making books look better:

    http://jakehasablog.blogspot.com/2012/05/walker-has-given-wisconsin-bigger.html
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    Nov 21, 2012 12:54 PM GMT
    q1w2e3 saidAnd here's to deferred payment about making books look better:

    http://jakehasablog.blogspot.com/2012/05/walker-has-given-wisconsin-bigger.html


    Oh so are you saying the link you posted to Politifact was wrong?
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    Nov 21, 2012 12:58 PM GMT
    riddler78 said
    q1w2e3 saidAnd here's to deferred payment about making books look better:

    http://jakehasablog.blogspot.com/2012/05/walker-has-given-wisconsin-bigger.html


    Oh so are you saying the link you posted to Politifact was wrong?


    No, I'm saying that the way Walker balanced the budget with the cash accountingl method relies on borrowing which defers payment to future budgets.

    And do you agree that the $3 billion deficit (by GAAP) and the $277 million (by cash accounting) are apples and oranges? If so, we have no argument here.
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    Nov 21, 2012 1:52 PM GMT
    q1w2e3 said
    riddler78 said
    q1w2e3 saidAnd here's to deferred payment about making books look better:

    http://jakehasablog.blogspot.com/2012/05/walker-has-given-wisconsin-bigger.html


    Oh so are you saying the link you posted to Politifact was wrong?


    No, I'm saying that the way Walker balanced the budget with the cash accountingl method relies on borrowing which defers payment to future budgets.

    And do you agree that the $3 billion deficit (by GAAP) and the $277 million (by cash accounting) are apples and oranges? If so, we have no argument here.


    Looking at the link as you provided, links for instance to
    http://bdgrdemocracy.files.wordpress.com/2012/10/2012_05_18-vinehout.pdf - as evidence that Walker has borrowed funds in order to break even. Except, the problem here is that it's not.

    If you actually read the text they have restructured the pre-existing debt - so it's not a "gotcha". Also looking at the links you provided, shows that Walker did make significant changes to public pensions and benefits which reduced the structural deficit from primarily a GAAP perspective but also from a cash accounting standpoint.
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    Nov 21, 2012 2:45 PM GMT
    Let's just face it, Walker has been fixing the previous mess left by Doyle.
  • jock_1

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    Nov 21, 2012 5:57 PM GMT
    Doyal was a douchebag who took the state down the road to ruins like many other democrat governors have done with thier states. Doyal raided funds to pay off all his buddies and pay for programs he couldnt fund all the while raising taxes. Walker has cleaned up most of it in about 2 years. Fact is he has done a great job and he is a conservative and democrats can't stand that. So what else is new?
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    Nov 21, 2012 7:09 PM GMT
    jock_1 saidDoyal was a douchebag who took the state down the road to ruins like many other democrat governors have done with thier states. Doyal raided funds to pay off all his buddies and pay for programs he couldnt fund all the while raising taxes. Walker has cleaned up most of it in about 2 years. Fact is he has done a great job and he is a conservative and democrats can't stand that. So what else is new?


    Doesn't your pregnant girlfriend get annoyed that you spend so much time on a gay site?