To all the hard-working, Democracy loving, fiscally responsible people of Wisconsin,
You have been misled. Governor Scott Walker has completely misrepresented his budget and Wisconsin’s fiscal state. Before, during, and after debate on this budget, Walker has lied to you. His statement released after the Legislature’s budget passage continues these lies:
“I am proud of the work done by the Legislature, which passed a budget today that isn’t built on accounting gimmicks, use of one time money for ongoing expenses, or tax increases. The budget approved by the Legislature is an honest document that balancesWisconsin’s $3.6 billion budget deficit so that our children and grandchildren aren’t saddled with mountains of debt in the future.”
Moving forward, I plan on taking time over the next two weeks to review the changes made by the Legislature prior to signing the bill before June 30th.”
These lies were repeated so many times by Walker, GOP Legislators, and the media they have passed for conventional wisdom. As a service to the people of Wisconsin who may have fallen prey to Scott Walker’s budget hijinks, here are the lies in Scott Walker’s statement exposed:
Piece #1 – The “…budget today…isn’t built on…tax increases.” (see quote above) In a January 13, 2011 memo from LFB Director Bob Lang, the LFB specifies two significant tax increases. These tax increases affect poor, lower-income residents who rely on the Earned Income Credit and Homestead Tax Credit to simply make ends meet. Through this budget, the state is increasing the tax burden on the lowest wage earners by nearly $70 million over two years. In addition, fees will increase by over $100 million, targeted primarily at tuition increases for UW students, and vehicle title fees to segregated funds. A tax is a tax – it is a lie to consider these anything but what they are.
Piece #2 – “The budget…isn’t built on accounting gimmicks” Scott Walker promised, backed by GOP Legislators, to not raid segregated funds to balance the budget. This was a practice he slammed Jim Doyle over, and repeated this promise again and again. A June 14, 2011 memo, again from LFB Director Bob Lang, proves this to be a blatant lie. The memo itemized over $400 million in segregated fund “transfers”. Most of the raids transfer funds from General and Environmental Funds into Transportation Fund (to fund road construction boondoggles). The LFB memo confirms these funds are ”used for purposes other than…the funds have traditionally been used.” The fund raids themselves are gimmicks used to give the appearance of a “balanced” budget.
Piece #3 – “…our children and grandchildren aren’t saddled with mountains of debt…” In the biennial budget, Scott Walker has given huge tax breaks to corporations and the wealthiest individuals to make Wisconsin more “business friendly.” Regardless of the fact that tax breaks don’t create jobs (see item #3 of the link – includes charts!); there will be a significant price for our children to pay - long after Walker is out of office. The June 9, 2011 LFB memo from Rob Reinhardt itemized the long-term consequences of these tax cuts for large corporations and the wealthy. The total LFB projection in lost revenue over ten years – over $2.3 Billion. Yes – BILLION. Most of the revenue loss is due to the changes in Capital Gains and Combined Reporting, benefitting the highest income earners and largest corporations in Wisconsin. Scott Walker will be out of office long before this revenue loss impacts Wisconsin’s children.
Piece #4 – “…our children and grandchildren aren’t saddled with mountains of debt…” (part 2) The June 14, 2011 LFB memo from Fiscal Analyst Al Runde unveils the most disturbing lie about the Walker budget. Walker’s debt restructuring plan provides for longer term debt service, incurring greater interest costs for the state. The plan simply allows the Governor to delay debt service payments beginning in 2013. Scott Walker will delay debt payments, accruing higher interest, and literally ”kicking the can down the road.” The impact? The state standard for debt-to-revenue ratio is no greater than 4%, with a target debt ratio of 3-3.5% of General Program Revenue. Table 2 in the linked memo shows the debt-to-revenue ratio projections. THIS IS CRITICAL – Debt ratio grows from 2.28% this year, to almost 5% next year. In 2013-2014, it grows to OVER 5%, even with a generous 4% growth in revenue. A debt-to-revenue ratio of over 5% is higher than ANY budget under Jim Doyle. This literally saddles Wisconsin with increased debt AFTER Walker’s term is over.
Point #5 - This budget “…balances Wisconsin’s $3.6 billion budget deficit.” No, it doesn’t. The June 15, 2011 LFB memo specifies the fiscal condition of the Transportation Fund. The fund will operate in a deficit after this fiscal year. Through the raiding of the General Fund (see above), which is a one-time transfer, the Transportation Fund will be in a $244 million deficit for the 2013-2015 bienium. In addition, because of Walker’s method for debt restructuring (see above), the Transportation Fund will require higher levels of bonding to maintain equal levels. The total deficit, over the 2013-2015 bienium - $319 million. A deficit which will come due AFTER Walker is out of office, and after the Road Construction lobby has been paid – with money raided from the General Fund, and debt sold to our children.
Simply stated, Scott Walker has lied. He has raised taxes, raided funds, created a critical future revenue shortfall, sold debt to future generations, and created a budget deficit. Spread the word, share the facts, and make sure Wisconsin knows the truth about this fiscally (and socially) disastrous budget – which doesn’t work for anyone!
Thanks to all contributing legislators in sharing their research, time, and efforts in this unprecedented time. On Wisconsin!
Waukesha County – Prosser, Jensen, Nickolaus in Corruption, Inc.
In five months, the political powers in Wisconsin have co-opted all three branches of government to overturn nearly a century of Progressive political philosophy. The LaFollette idea of Wisconsin Government (called the “Wisconsin Idea”) states that government is responsible for doing the greatest good to the greatest possible number of citizens. Under Scott Walker (Executive Branch), the Fitzgerald brothers (Legislative), and David Prosser (Judicial) – the neoconservatives have colluded in a systematic dismantling of civil discourse and deliberative democracy. Instead of the “Wisconsin Idea,” we now have consolidation of power away from local governments and into the Governor’s office, a powerless Legislature (Act 21), Corporate tax welfare, slashed Public Education, increased taxes on working families, elimination of Public Worker’s rights (don’t worry private union workers – you’re next), and deficit spending. Wisconsin is politically unrecognizable from twenty years ago – and not for the better.
Right-wing talk shows (Sykes, Belling), op-ed pages, and bloggers have (ironically) been pointing the finger of blame for Wisconsin’s problems at Madison and Dane County for years. Madison is the seat of liberalism, rife with corruption and graft. Dane County is the source of blame for bad governance and wasteful spending, corrupt with patronage and corporate favors. These boisterous allegations deflect attention from the actual hub of political corruption in Wisconsin, and the source of GOP power - Waukesha County. The GOP has been consolidating power in Waukesha County for over two decades; creating a fortress for themselves and resulting in insulated single-party rule.
Since the early 1980′s, Waukesha County has become the perfect setting for GOP consolidation. The area has changed from being “cow county” to being one of the most affluent in the state. Population has steadily increased, as has income medians. From the above link, Waukesha county has become “…older (Wisconsin’s median age is 38; Waukesha County, 42), whiter (Wisconsin, 86%; Waukesha County, 98%), more families (Wisconsin, 64%; Waukesha County, 71%), fewer female-headed households with no husband present (Wisconsin, 10%; Waukesha County, 7%) and has more owner-occupied housing units (Wisconsin, 68%; Waukesha County, 76%).” The perfect target GOP demographic. The change can be seen in Gubernatorial Election Trends since 1982. In 1982, when Democrat Tony Earl won the Governorship, Waukesha County voted Republican by less than ten points. Thirteen Counties in the state had higher GOP vote margins. 1986 – 2006 saw Waukesha solidify its GOP fortress. Noteworthy is in 1994, even Dane County voted for Thompson. In 2006, Waukesha County was one of only three Republican voting counties. The Waukesha – based GOP powers now answer to a very narrow segment of wealthy, corporate interests - and it has been the difference in key elections, recently David Prosser.
When Kathy Nickolaus broke the news of finding thousands of votes, swinging the election in favor of Prosser, allegations of fraud immediately surfaced. The connection between Prosser and Nickolaus was easily made. Nickolaus had received immunity in exchange for her testimony in the Caucus Scandal that brought down Scott Jensen (Prosser’s former boss in the Assembly). Enter the Scott Jensen connection, and Waukesha County political corruption.
Scott Jensen was convicted on three felony counts of campaign fraud in 2006, and sentenced to 15 months in prison. The conviction was overturned on a “jury instruction” technicality in 2007. Jensen appealed the case, attempting a change in venue from Dane County to his home of Waukesha County, which the Appellate Court denied. The basis for his appeal was made possible by a new law passed for Jensen’s benefit – allowing campaign fraud trials to be held in a lawmaker’s home jurisdiction. The Supreme Court agreed to hear the case and in May, 2010, ordered a change in venue (with Prosser recusing himself). He had testified for Jensen (his former boss) at the trial, saying he was an “honorable” politician. Prosser’s fellow conservative, Patience Roggensack authored the opinion based on the new State Statute in a unanimous opinin from the Conservative Court. Jensen’s case was moved to Waukesha County, and based on Prosser’s recent behavior, can there be any doubt in spite of his recusal, that he carried a great deal of influence on the Court’s decision to even hear the case?
In friendly Waukesha County, Jensen was able to arrange a plea bargain with Republican DA Brad Schimel. In December, 2010, one month after Republicans secured the Governor’s office and the Legislature, Jensen walked away with a civil forfeiture of $5000, and $67,000 in repayment of attorney’s fees to the state. He served no jail time. Kathy Nickolaus continues uncontested to control elections in Waukesha County. Was the delivery of Waukesha County to Prosser payback for his years of loyalty to Jensen and the GOP?
In filing their complaint to the GAB demanding an independent investigation into Kathy Nickolaus and the Waukesha County election results, the Kloppenburg Campaign submitted the following email from DA Brad Schimel (whose office would be responsible for prosecuting any alleged fraud) to Kathy Nickolaus as evidence of impropriety:
Sent: Friday, April 8, 2011 8:24 AM
Kathy,
You handled everything as well as possible yesterday. I had several events last night, and everyone I spoke with was very understanding about how something like this could happen.
I think it will be ok. Hang in there and keep your chin up.
Brad
Jensen, Prosser, Nickolaus – just the beginning of the list. County Executive Dan Vrakas – running virtually unopposed faced a cocaine possession conviction, yet was “anointed” by Charlie Sykes as the best candidate for the job. Vrakas raised huge sums of money ($114,000+) in his election bids to the Wisconsin Assembly prior to becoming County Executive. Judge Linda VanDeWater faces disorderly conduct charges from March in Racine County involving a domestic dispute (she is a Walker supporter, and vice-versa). Jefferson Davis, former Menominee Falls Village President, was forced out of office as part of a plea for campaign violations (Mr. Davis is a frequent GOP campaign contributor).
The population in Waukesha County is insulated from the rest of the state by a well established GOP machine. Right-wing talk radio, big money, and corporate influence in a virtual single-party rule have created the perfect environment for run away power and corruption. There should be little question regarding motive, opportunity, or ability of the GOP machine in Waukesha County to do whatever it takes to achieve their desired outcome in an election.
For the conservatives reading this who claim Dane County is just as bad in its liberal leanings – I would point out one eye-opening fact. The Democratic Legislators whose trials remained in Dane County Circuit Court went to prison. Brian Burke received a six-month sentence and had to pay almost $88,000 in fines. Chuck Chvala served 9 months, with two years probation. In both cases, the “Liberal Dane County Judges’” sentences exceeded prosecutor recommendations. Scott Jensen walked.
The next time you hear the GOP call for moving the State Capitol, you will know where they would love to have it – Waukesha County. The real home of political corruption, patronage, and power in Wisconsin.
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Posted by Badger Democracy on June 28, 2011
http://bdgrdemocracy.wordpress.com/2011/06/28/waukesha-county-prosser-jensen-nickolaus-in-corruption-inc/