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Doyle warns of state job cuts

By ASSOCIATED PRESS   Wednesday, October 15, 2008 - 5:40 p.m.
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MADISON — Nothing, including cutting state government jobs and spending on education, will be off the table as Wisconsin deals with the national economic downturn that could put the state $3 billion in the red, Gov. Jim Doyle warned Wednesday.

"We’re going to have to make very deep cuts," the governor said at a news conference in his Capitol office. "We’re going to have to do a lot things that aren’t pleasant. ... To me, nothing’s off the table."

But Doyle said his goal was to avoid a tax increase and he remains committed to having the state provide two-thirds of school funding.

Doyle is in the middle of preparing the state’s next two-year budget, which he will deliver it to the Legislature in February. Despite current economic turmoil, Doyle said he was optimistic the state could make it through the rest of this year without emergency action.

However, Doyle said he ordered state agencies to cut 10 percent from their proposals for the budget that will take effect July 1. That’s after he already told them to cut millions of dollars in agency spending and not expect any increases over the next two years.

With so much uncertainty in the national economy, there’s no way to know for sure how severe the problem will be, Doyle said. Official revenue projections for the state will be released Nov. 20.

"This situation could be much worse than we think," Doyle said.

Sales, income and corporate tax collections were down in August, and overall tax collections were up only 0.4 percent in the first three months of the current fiscal year, he said.

The state has 13,000 fewer jobs now than it did last year, he said.

Even so, Wisconsin’s real estate market has remained relatively steady, and its banks are strong, Doyle said.




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(17)
dontthink2
Oct 16, 2008 at 8:07 p.m.
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greenst, With your thinking, if the state employed everyone in Wisconsin we would have no unemployment. What a great idea.

polert
Oct 16, 2008 at 12:49 p.m.
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Do you realize man kind has always had trickle down economics. Nature uses a trickle down system as well. There have been some bumps in the road but since the begin of time but I would place the score in favor of a trickle down system.

America has always had a trickle down system. Their was attempt one time to change this plan to socialism which dove America into a depression.

Why did America have a depression you ask? Because the human animal will not work hard to achieve the same amount that a person that is unwilling to work will get.

jviers77
Oct 16, 2008 at 12:01 p.m.
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polert
*
Like janesberg said, the small businesses will only see taxes increase if they make over $250k. Then, their tax share will go from 36% to 39%. The trickle-down economic plan of the last 8 years has not worked. The rich have gotten substantially richer while the other 80-90% of the people have either seen their incomes stagnate or reduce. I don't agree with all of Sen. Obama's economic plan, but it's a lot better than Sen. McCain's. There are some fresh ideas there to help the middle class become the driving force in this country again. I don't have a problem with taxes being raised as long as we all pay the same rate. Your tax rate shouldn't go down because you make more money.

spark
Oct 16, 2008 at 10:20 a.m.
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Doyle sucks.

Walker
Oct 16, 2008 at 8:56 a.m.
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Well atleast Doyle is not going to abandon us in the future, should he be offered a job in Washington!

see the last paragraph here
http://www.jsonline.com/story/index.aspx...

"Doyle also said he won’t escape the looming state budget crunch by taking a federal job, if Democratic presidential candidate Sen. Barack Obama is elected on Nov. 4."

janesvillecomments
Oct 16, 2008 at 8:16 a.m.
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At least Doyle is now praticed in telling out-of-work people where to go...
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Perhaps he is demonstrating his "hatchet-man" qualities to Obama.

greenst
Oct 16, 2008 at 8:06 a.m.
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How does cutting state jobs help the states economy? If we have 13000 fewer jobs in wisconsin now, how does adding more people to the list of unemployed help. I would think having wisconsin people employed spending their pay check in wisconsin would help the economy. Not adding people drawing from the unemployment fund.

thekai
Oct 16, 2008 at 5:29 a.m.
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janesvillean,
My hope is that my ignorance was so outlandish that it wouldn't be too difficult to pick up on my sarcasm ;-).

reader101
Oct 16, 2008 at 4:38 a.m.
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Doyle has been the worst governer in over 30 years. He continues to hire consultants at a cost of at least 18% more than if he used state staff, I forgot he cut those jobs already. If he wants to cut cost he should stop hiring his campaign contributors and hire permanant staff to do the job. At the DOT office in Waukesha there are consultants with permenant office spaces because Doyle would not approve hiring permanant staff to do the same job. Do the math. A consult engineer hired by the state costs equals the wage of the engineer + cost of consultant company's overhead + company allowed profit(3-5% of the total cost). An engineer hired by the state has no company profit and the overhead is very low. When Doyle, in an elction year, repealed the automatic gas tax increase of 0.1 of a cent ($0.001) per gallon per year, it cost the state 5% of the federal gas tax reimburment (@ $50,000,000) per year. An average driver driving 20000 miles a year with a 15 mpg vehicle would have paid @ $1.50 extra each year. Remembering also that out of state drivers filling up also paid the tax. Now it becomes only a burden on Wisconsin residences. Doyle also keeps cutting the prosectutors offices across the state. Even lawyers don't like him, unless they have class action lawsuits. Doyle keeps increasing the number of programs within and then wants to cut jobs and then goes and hires outside help at a higher cost and then says he running out of money. When will enough be enough.

janesvillean
Oct 16, 2008 at 2:48 a.m.
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thekai, does that apply to the federal dollars we are spending in Iraq? Or even just steaming the Big E around the Atlantic Theater? Do states get miles of Interstate determined by how much taxes they pay, or how important the transportation corridor is? So obviously there is no formula dictating that federal taxes are spent in the state where they are collected.
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In fact, it varies widely. Some states collect more due to higher entitlement populations, others because of greater numbers of federal facilities from Los Alamos to Cape Canaveral. It's really impossible to correlate it any better because of the variety of expenditures. Notoriously, some of the most shortchanged areas are in the urban northeast.
http://www.nemw.org/taxburd.htm
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Regarding the Wisconsin budget, though. There has been a marked decline in support for Keynesian economics, with McCain's call for a spending freeze the most notorious. Most economists -- but not politicians -- still believe government spending cutbacks would prolong a recession. It is, in fact, the conventional wisdom that we "worked our way out" of the Great Depression by ramping up military spending on the eve of World War II.
http://www.answers.com/topic/keynesian-e...

thekai
Oct 16, 2008 at 1:23 a.m.
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polert,
I'm wondering what the purpose of federal taxes is, compared to the purpose of state taxes. I thought for sure 100% of federal taxes were supposed to go back to the state where they came from....

polert
Oct 16, 2008 at 12:44 a.m.
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Janesberg where will that extra federal tax dollars that these small business owners go? They will not come back here to Wisconsin I hope you know.Where will that small business owner scrap that extra federal tax dollars from? The employee pay roll.

I know you think it is ok because it is not you being punished for hard work. But as you well know even though Obama claims now it is a tax for the rich. The bar for what is considered rich can be lowered at end time.

Just to let you know everyone that lives in Janesville is consider wealthy.

janesberg
Oct 15, 2008 at 11:43 p.m.
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The tax return per dollar is actually .86. And not all small business owners are effected. I am neither a Democrat or a Republican. But I have read the plans and Obama's plan increases only when a business owner starts making more than 250,000 dollars. To me, if someone is making 250,000 dollars they can help out. I am sick of hearing how it will cause the business to shut down.The fact is the business owner now can't buy a Escalade or worse Foreign SUV, or a 4,000 square foot house. Here is a link to read the facts of the 2 plans. http://www.taxfoundation.org/candidates0...

JohnDoe
Oct 15, 2008 at 9:30 p.m.
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Quite frankly...it's been quite some time since we've had a real choice.
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It's a sad commentary on what Wisconsin politics has become.

polert
Oct 15, 2008 at 7:08 p.m.
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Jim already knows under the spread the wealth program Wisconsin will not have that extra money being spread around by small business owners. Right now out of every dollar a small business owner pays in federal income taxes only $.75 is returned to Wisconsin. Under Obama that same small business owner will pay a additional minimum of $7,500 which will come right out of the employee payroll to cover this cost. This mean less income for Wisconsin residents as this money will be redirected to other areas of the country that have less wealth. How things are ran right now do not seem that bad when you realize what is about to come. Do you like having a good education standard, fairly nice parks, fairly nice public services. Now reduce that on a State budget by 3%.

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