• WisBusiness

Tuesday, September 21, 2010

Economic growth is vital part of efforts to reduce state budget deficit

By Tom Still
Some political wonks are questioning how Wisconsin’s candidates for governor can even think about investing in economic development strategies when the state is facing budget deficits of more than $1 billion a year.

A better question is: How can Wisconsin’s next governor hope to reduce the deficit without specifically encouraging the private sector to create more jobs?

Controlling state spending must be a part of any state deficit-cutting strategy, but there’s little chance the $1.3-billion deficit projected for the budget year beginning July 1, 2011, can be eliminated on cuts alone. Unless Wisconsin citizens are willing to accept Draconian reductions in high-profile programs such as prisons, transportation, K-12 education, higher education, Medicaid and state aid for local governments, the next governor and Legislature won’t slash their way to a balanced budget.

“Even if spending for all state programs was absolutely frozen for two years and we had normal revenue growth, the budget gap would still be $778 million” over two years, wrote former Revenue Secretary Rick Chandler in an analysis for the Wisconsin Policy Research Institute.

“Normal” revenue growth of 3.2 percent per year – the Wisconsin average in the 10 years preceding the 2008 recession – is no longer good enough. Wisconsin must aspire to join a highly competitive cohort of states that have driven revenue growth at nearly twice that rate and eventually grow its way out of the deficit.

How can Wisconsin transform itself from a state that has been losing market share for decades to a place where robust economic activity is creating jobs, opportunity and tax revenues? By embracing an economic development strategy built on innovation.

Making strategic investments in Wisconsin’s global innovation economy, encouraging the entrepreneurial culture so more young companies are created, capitalizing on the state’s research and development strengths and aligning investments in education with the state’s strategic economic plan are strategies that will pay dividends over time.

A recently released study commissioned by Competitive Wisconsin Inc. and other partners noted that Wisconsin lags the U.S. average in per capita income and job creation, a situation that hasn’t really changed for decades during Republican and Democratic administrations alike.

Since 1994, Wisconsin’s population, jobs and gross domestic product have declined as a share of national totals, according to the Wisconsin Taxpayers Alliance. State per capita income almost matched the U.S. average in the late 1990s and early 2000s, but has slipped back to roughly 6 percent below the national norm.

It’s no coincidence that during that same period the state invested sparingly in economic development. In fact, the consultants noted, some U.S. counties spend more each year on economic attraction than the entire state of Wisconsin.

Policies that improve Wisconsin’s economic standing would help close state budget deficits because higher economic output leads to more tax revenue – without raising tax rates on income, property, sales or companies.

Some solid policy choices have been made in recent years. They include building on the state’s research and development foundation, standing by investors who stand by homegrown companies, and working to awaken an entrepreneurial culture that was all but dormant. But more must be done to improve access to investment capital for entrepreneurs, build a more educated workforce, create a stronger business climate and speed technology from the lab to the marketplace.

There must also be a commitment to position Wisconsin to compete in a world where the challenges to prosperity are just as likely to come from Shanghai or Mumbai as they are Chicago or Minneapolis.

That’s why both major-party candidates for governor, Democrat Tom Barrett and Republican Scott Walker, have talked about economic incentives as well as spending cuts. While their economic plans reflect different priorities, and contain varying levels of detail, it’s clear both candidates see economic development as a priority.

So do others. The Wisconsin Economic Summit series will conclude Oct. 5 in Milwaukee with presentation of a “prosperity strategy” developed over the past two months by a wide-ranging group of business, education and labor leaders. It’s a bipartisan plan that could be embraced by either candidate.

As the Nov. 2 election draws closer, voters should pay close attention to the growth strategies outlined by Barrett and Walker. Without a clear commitment to economic growth, which brings good-paying jobs, wealth and reinvestment, Wisconsin will be doomed to chronic budget deficits for years to come.

-- Still is president of the Wisconsin Technology Council. He is the former associate editor of the Wisconsin State Journal. Learn more about the Wisconsin Economic Summit series at http://www.wiroundtable.org/summit/


Comments: 9

At February 5, 2018 at 8:57 AM, Blogger cyberdots said...

good post
tutuapp download
tutuapp apk

K-Lite Codec Pack Free Download
K-Lite Codec

kingroot app download
kingroot apk download
thanks admin

At March 9, 2018 at 3:31 AM, Blogger DorthyRTorres said...

frp bypass tool apk app is useful for your android devices to bypass google verification.

At April 12, 2018 at 11:55 PM, Blogger Neil Jakson said...

I am so grateful to find your particular post. I have bookmarked this website and I will keep visiting you for further such interesting posts.

At July 31, 2018 at 3:23 AM, Blogger Bruno Araujo said...

Everytime you need a help with your homework you need to visit this site. It is so easy to do it!

At February 13, 2019 at 3:29 PM, Blogger Robert Price said...

You were definitely right about it. Now check persuasive essay service. Try it out!

At February 26, 2019 at 6:47 AM, Blogger Julia Ozon said...

Introduction is one of the main part of the paper. Navigate here https://essaydragon.com/blog/research-paper-introduction to learn some new tips.

At March 25, 2019 at 4:14 AM, Blogger Naru Shah said...

Much obligated copious in spades for the simplest quality and results-arranged encourage. i will not ought to embrace your web site post to anyone United Nations organization like and desires bolster connected with this house.
Good Friday Captions for Instagram
Captions for Facebook DP

At May 18, 2019 at 3:18 AM, Blogger Yakru45 said...

This is really an amazing blog. Your blog is really good and your article has always good thank you for information.

โปรโมชั่นGclub ของทางทีมงานตอนนี้แจกฟรีโบนัส 50%
เพียงแค่คุณสมัคร Gclub กับทางทีมงานของเราเพียงเท่านั้น
สมัครสล็อตออนไลน์ >>> goldenslot
สนใจร่วมลงทุนกับเรา สมัครเอเย่น Gclub คลิ๊กได้เลย

At May 18, 2019 at 3:22 AM, Blogger Madoo said...

Great post ! I am pretty much pleased with your good post.You put really very helpful information

เว็บไซต์คาสิโนออนไลน์ที่ได้คุณภาพอับดับ 1 ของประเทศ
เป็นเว็บไซต์การพนันออนไลน์ที่มีคนมา สมัคร Gclub Royal1688
และยังมีหวยให้คุณได้เล่น สมัครหวยออนไลน์ ได้เลย
สมัครสมาชิกที่นี่ >>> Gclub Royal1688


Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed

wisbusiness.com Social News

Follow Us

Site Sponsors


· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications