Hintz Opposes Fiscal Recklessness
Contact: Representative Gordon Hintz
May 14, 2008
608-266-2254
Budget Band-Aid is No Cure
Hintz Opposes Fiscal Recklessness
MADISON– On Wednesday, the State Assembly passed the March Special Session Assembly Bill 1, the Budget Repair Bill, by a vote of 51-46. Representative Gordon Hintz (D-Oshkosh) voted no on the bill.
“The failure to provide stable revenue to fund existing programs in the original budget has been made worse by the decision made in today’s budget repair,” said Hintz. “Instead of addressing our shortfall responsibly, we have pushed off tough decisions into the future and continued a bad habit of borrowing, using one-time money, and accounting gimmicks. In less than a year, a new budget will be introduced and considered, but the same problems will remain.”
The actions taken in the budget repair bill actions include:
* Borrowing an additional $209 million against the state’s tobacco settlement
* Transferring $57 million from the Budget Stabilization Fund to the General Fund
* Delaying an additional $125 million in school aid payments
“Fiscal responsibility is not cutting taxes while increasing spending or borrowing and piecing together money to get through the year. In almost every case, raising revenue or cutting spending would be a more fiscally responsible approach to governance than what was done today. “
The original budget and budget repair included a hospital assessment supported by the Wisconsin Hospitals Association and Wisconsin Manufacturers and Commerce that would have brought in $125 million of new revenue to help fund increasing medical assistance costs and increase reimbursement rates to physicians. This ongoing revenue would have reduced the structural deficit and provided a stable revenue source for one of the state’s fastest growing programs.
Assembly Republicans killed the hospital assessment proposal used by more than 20 states. Despite their calls for cutting spending, not a single program cut was identified by Assembly Republicans during the budget repair bill process.
“Spending future money on present expenses ends up destroying our long-term stability. When we need to make investments in the future, we won’t have the money to do so.”
May 14, 2008
608-266-2254
Budget Band-Aid is No Cure
Hintz Opposes Fiscal Recklessness
MADISON– On Wednesday, the State Assembly passed the March Special Session Assembly Bill 1, the Budget Repair Bill, by a vote of 51-46. Representative Gordon Hintz (D-Oshkosh) voted no on the bill.
“The failure to provide stable revenue to fund existing programs in the original budget has been made worse by the decision made in today’s budget repair,” said Hintz. “Instead of addressing our shortfall responsibly, we have pushed off tough decisions into the future and continued a bad habit of borrowing, using one-time money, and accounting gimmicks. In less than a year, a new budget will be introduced and considered, but the same problems will remain.”
The actions taken in the budget repair bill actions include:
* Borrowing an additional $209 million against the state’s tobacco settlement
* Transferring $57 million from the Budget Stabilization Fund to the General Fund
* Delaying an additional $125 million in school aid payments
“Fiscal responsibility is not cutting taxes while increasing spending or borrowing and piecing together money to get through the year. In almost every case, raising revenue or cutting spending would be a more fiscally responsible approach to governance than what was done today. “
The original budget and budget repair included a hospital assessment supported by the Wisconsin Hospitals Association and Wisconsin Manufacturers and Commerce that would have brought in $125 million of new revenue to help fund increasing medical assistance costs and increase reimbursement rates to physicians. This ongoing revenue would have reduced the structural deficit and provided a stable revenue source for one of the state’s fastest growing programs.
Assembly Republicans killed the hospital assessment proposal used by more than 20 states. Despite their calls for cutting spending, not a single program cut was identified by Assembly Republicans during the budget repair bill process.
“Spending future money on present expenses ends up destroying our long-term stability. When we need to make investments in the future, we won’t have the money to do so.”
posted by Cheryl Hentz at 7:32 AM
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