My Fellow Citizens, Let's Be Careful Out There

Job programs threatened

Federal cuts would curtail operations of employment, training services

While Republicans contend that curbing government spending ultimately will stimulate job creation, critics say jobs will be lost if the spending bill becomes law. One program that will take a hit is the Workforce Investment Act, which provides funding for employment and job training activities.

Jim Golembeski, executive director of the Bay Area Workforce Development Board, (Among the services provided by Bay Area Workforce Development are computer competency classes, assistance on unemployment insurance issues, aid to workers involved in mass layoffs, retraining for unemployed workers and companies, such as Marinette Marine Corp., which need to upgrade its workers skills in a hurry, and job-skill training for young workers), says he would have to shut down his operation if the cuts are approved.

Spokesmen for Sean Duffy and Reid Ribble say that while the Workforce Investment Act programs mean well, they are among those cited in a recent Government Accountability Office report as examples of government duplication and waste. The report found the government spent $17 billion last year on 45 job training programs that generally do the same thing.

It’s worth noting that 94.7 percent of the dislocated workers Bay Area Workforce Development assists get jobs.

So what’s the problem?  Too many are being trained or too many jobs are being created?  Oh, that’s right, the budget.

“The congressman recognizes there is way too much waste in government, and we are focused on cutting it," a spokesman for Ribble said.

Waste?  Getting people trained and back to work is wasteful?

“The bottom line remains that everyone has to share in the fiscal belt-tightening necessary to bring about full economic recovery,” Ribble’s spokesman stated.

Now, where have I heard that before?  Government workers and Medicaid recipients (Medicaid covers one in three children in the United States, making it the largest insurer of children) have certainly heard that before.

Wisconsin Governor Scott Walker signs tax cut bill into law

Businesses get break for moving into Wisconsin

Companies that relocate to Wisconsin won't have to pay income taxes for two years under a bill signed into law Monday by Gov. Scott Walker.  The measure joins three others Walker has signed in his first month in office that he said will send a message that Wisconsin is more business friendly.

Aid to public schools, the University of Wisconsin System, local governments and Medicaid programs were expected to be big targets for cuts in the Walker budget.

Walker's been focused on spending money through tax cuts. Two tax cuts he's already signed would add about $117 million to the state's budget problem over the next two years.

Today, Walker proposed that the state borrow $75 million to build a museum.  Borrow.  Oh, that’s right, the budget.

I’m privileged to have been befriended by many smart people.  One is an entrepreneur in the Chicago area.  He wrote to me:

Taxes are just one consideration when thinking about where to start / move a business.  You also have to factor in the following depending on type of business:

1.) Proximity to skilled labor force (we use a lot of computer programmers, graphic designers, etc. - there tends to be more talent in larger cities).

2.) Proximity to customer base and potential shipping / transaction costs (a huge consideration for manufacturing companies who have to ship product).

3.) Proximity to suppliers (similar to #2, how can you cost effectively get raw materials).

4.) Relocation costs (hard costs associated with moving, time associated with and ability to replace work force, etc.).

There are many other factors, but these are some key ones.

In the ‘80s, I used to watch “Hill Street Blues”.  My favorite part was when Sgt. Esterhaus would warn, “Hey, let’s be careful out there.”

What Makes a Fact a Fact?

{Photo Credit - Gannett Wisconsin Media}

I guess if you say something often enough, it becomes fact.

At a February 17^th news conference, Governor Walker claimed, “I campaigned on this.”

On February 21^st, Walker stated, "The simple matter is I campaigned on this all throughout the election.”

Time and again, throughout this budget battle, Walker has echoed the same, “If anyone didn’t know what’s coming, they’ve been asleep.”

I guess if you say something often enough, it becomes fact.

Yesterday, a CNN reporter challenged a capital protester with “Governor Walker campaigned on this.” 

It’s now fact…I guess.

My ten-year-old son asked the other day, “Dad, are grown-ups allowed to lie?” 

Kids are so cute.

On Walker’s website, http://www.scottwalker.org/, it reads the following in regards to education and families: “School districts are often steered off track by one-size-fits-all mandates that suppress innovation. Once we eliminate outdated and unnecessary rules, schools will have the freedom to set high standards and the ability to meet them…

 We will also create a new class of highly qualified, well-paid teachers who will be given the opportunity to advance in their career…

  I understand that Wisconsin families are struggling to make ends meet.”

Would “outdated and unnecessary rules” refer to collective bargaining? 

Walker’s website continues: “The following set of reforms will help put state government back on the side of the people:

·         Start the state budget at zero.

·         Require the use of generally accepted accounting principles.

·         Strip policy and pork projects from the state budget.

·         End the practice of raiding segregated state funds to pay for other programs.

·         Restore Wisconsin’s reputation for clean and honest government.

 Of course, he did not campaign on this.  It wasn’t until after he was elected (December 7^th, 2010 to be exact) did he reveal the details of his plan. 

  "Anything from the decertify all the way through modifications of the current laws in place," Walker said.  "The bottom line is that we are going to look at every legal means we have to try to put that balance more on the side of taxpayers and the people who care about services."

  I will admit, in Walker’s defense, that we’ve “been asleep.”

 During the Tommy Thompson years, 1996-2001, pay freezes for teachers were enacted. (In order to compromise, the unions agreed to the pension and benefits packages that Wisconsin teachers have today).

  Thompson (Republican) targeted teachers' compensation, demonized their union and succeeded in passing revenue caps that limited how much school districts could increase spending, termed a Qualified Economic Offer. 

 (For this reason, less money is spent on children and a greater proportion of allotted money is devoted to deferred compensation packages.)

  Despite these cuts, the state’s debt rose by $1.8 billion during the Thompson years despite the nation-wide economic prosperity of this time and growth in state revenues.  In fact, the state’s structural deficit is often credited to Thompson.   

Thompson then resigned to become a member of President Bush’s cabinet. 

Yes, we should have seen this coming

    - The Thompson era was the proper preface.

 

Yes, we’ve been asleep

    – half of the voting age population participated in the last gubernatorial election.   

  

On Saturday, one hundred thousand people protested at the capitol.

  It certainly looks like people are awake now.

Families Just Looking to Survive

Today, JSOnline reported that 2 out of every 5 children in this state will qualify for subsidized lunch programs. 

  To be eligible for free lunch, a student must come from a family (say a family of four as example) earning $28,655/year or less. 

  Reduced-price lunches are available to students whose families have incomes which amount to $40, 793 for a family of four.

  Statistically, it's reported that the average public school teacher earns $49,000.

  (I have a family of five and for starters will lose $630/month from my family’s income as a result of Governor Walker’s cuts.) 

  After Walker’s cuts and without collective bargaining to help the average worker empower themselves, the average Wisconsin teacher’s kids will qualify for free or reduced lunch.

  Does it appear the families of Wisconsin teachers have too much?

Wisconsin governor defends budget bill as opposition persists 
By the CNN Wire Staff

"The state's Legislative Fiscal Bureau -- similar to the federal government's Congressional Budget Office -- reported last month that tax cuts passed late last year by Wisconsin's newly elected, Republican-led legislature had helped add more than $200 million to the state's budget shortfall."

State Legislature Passes $67M Tax Cut

By WTMJ Radio

Story Updated: Jan 27, 2011

 

 MADISON, Wis. (AP) -- Republican Gov. Scott Walker scored more victories Thursday, signing a major lawsuit reform bill into law and watching as the Legislature approved a tax cut for businesses that he says will create new jobs.

   Walker had promised swift action to show that Wisconsin, in his words, is "open for business." Even though most of his measures have received some support from Democrats, critics argue they are largely symbolic and will do little to actually create jobs or improve the state's economy.

   Senate Democrats said the latest tax cut measure, expected to cost the state $67 million over two years, was too expensive given the projected $3 billion shortfall in the two-year budget. They also said the tax bill, which would give businesses deductions worth $92 to $316 per job, wouldn't be enough by itself to get businesses to hire more people.

   That bill is the third tax cut the Legislature has passed this month. Walker has already signed into law a measure that eliminates income taxes on contributions made to health savings accounts. Another bill awaiting his signature would eliminate corporate and personal income taxes on companies that relocate to Wisconsin.

  The average worker in the private sector is not faring much better.  Yes, today’s average worker has it tough.

  In the state of Wisconsin, a single person making just over $20,000 pays 6.5% in income tax.  A single person making over $150,000 pays 6.75% of his income to the state in the form of income tax. 

  Does that seem fair to anyone?  

  A married couple in the state of Wisconsin making just under $27,000 pays income tax at a rate of 6.5%.  If this married couple has three children, this figure is just $2,000 over the poverty level.  A married couple making over $201,000 pays state income tax at a 6.75% clip. 

  Does that seem fair?

  Today’s battle in Wisconsin is not about unions per se – it’s about fairness – it’s about families struggling to survive.