ksena32 / Depositphotos.com
CONLEY COMMENTARY (WSAU) – Could Governor Tony Evers and Republican legislative leaders try again? What are the chances that they might try to negotiate a new deal, to build on the proposal that was rejected in the state senate.
It’s doubtful.
Would just changing the numbers work? I’d said before that a $300 tax rebate is too small. I favor $500 or $600 for individual filers. Democrats would likely insist on similar proportional increases in school aid. Just the bigger numbers alone will spend nearly $2.3-billion of the state’s $2.6-billion surplus. There would still be $300-million remaining for the next governor and legislature to fight over. That isn’t chump change. And the state’s rainy day fund remains full.
Why won’t that work? Because increasing the payouts is still a one-time event. It won’t be repeated next year.
Both republicans and democrats want long-term structural changes. Two years ago republicans suggested a two-budget plan to eliminate the state income tax. Tom Tiffany should bring back that plan, and say that the entire state surplus is the slingshot needed to get it out of the starting gate. Democrats would howl. Why? Because so many of their voters are so poor that they don’t pay income tax. There’s nothing in it for them. To which I say, “so what” – the surplus was built up by taxpayers, you and me, being overtaxed. Why shouldn’t we get the benefits when it’s spent down?
Democrats want to spend it all. They’re not interested in tax reform at all. Their plan would involve phasing in school funding increases. Eventually they’d like the state to cover two-thirds of special education costs, even if that means higher taxes than what we pay today.
There’s another reason why there won’t be a deal. Democrats are hopeful that they’ll win the governor’s race, and will flip both the house and the state senate. If so, they could do whatever they want without GOP input. Remember the full effects of redistricting in the state senate haven’t been seen yet. Numerous republican senators aren’t running again, and others are facing more challenging districts.
I think Deal 2.0 is unlikely. Your vote this fall will determine what happens to the surplus.
Chris
Comments