Thursday, January 24, 2008

Doyle pushes tax incentives, warns of spending cuts

Steven Walters, Stacy Forster and Patrick Marley report in today's Milwaukee Journal Sentinel on last night's State of the State address by Governor Doyle. The article includes this background.
Historically, Capitol politicians have been unable - or unwilling - to control spending.

General-fund spending will grow by $1.2 billion - or 9.4% - over a two-year period ending in mid-2009, according to the Legislative Fiscal Bureau. That is three times the 3% assumed growth in state income and sales taxes this year.

The relevant comparison would be with assumed growth over the same two-year period, but the deficit is there. By my calculation, continuing 9.4% biennial increases would double general-fund spending in 15 years.

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