Is our state budget balanced, or not?

By GREG PECK ( Contact )   Tuesday, January 31, 2012 - 2:38 p.m.

It’s a fair question: Did Gov. Scott Walker balance our state’s biennial budget, or didn’t he?

If you consider the state’s “structural” deficit, Walker’s budget erased a $3.6 billion gap. However, if you consider "generally accepted accounting principles,” or GAAP, the state still has a deficit of about $3 billion.

How do you draw that distinction between a “structural” and a GAAP deficit, and why is it important?

We’ll do our best to explain in our editorial Wednesday.

Greg Peck can be reached at (608) 755-8278 or gpeck@gazettextra.com. Or follow him on Twitter or Facebook

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(31)
tedmlewis
Feb 2, 2012 at 3:30 p.m.
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The Gazette editorial exemplifies why many people have ended their subscriptions, and why many object to the clear right wing editorial bias of the Gazette. The editorial is a blatant rationalization of a broken promise and at best deceptive rhetoric. The Governor explicitly promised to use Generally Accepted Accounting Principles to balance the budget when he campaigned. Now in office, he abandons GAAP when talking about balancing the budget, but selectively uses it for the purpose of dumping poor people off of health care. Even supporters of Governor Walker, like you, should hold our chief executive to keeping campaign promises and straight talk. Those of us who have objected to his cuts do not seek to ",,,have it both ways." We simply expect the Governor to have better priorities (boosting highway construction and corporate gifts while slashing education!!??); keep promises; and be consistent. Your contortions to defend the Governor on this issue are very telling.

hdonlybob
Feb 2, 2012 at 2:46 p.m.
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Once again all you folks want to do is spew your same old banter.
Simple question of mine still not answered:
USING THE SAME BOOKWORK THAT DOYLE USED FOR THE BUDGET FIGURES WHEN HE WAS IN OFFICE, IS IT NOW BALANCED OR NOT?
I don't understand what is so complicated or political about this.
Just give me an answer...

fearandrhetoric4dummies
Feb 2, 2012 at 12:49 p.m.
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Bob- pretty pathetic. "well this is what Doyle did, so...." Will that be your anwer for everything that Walker is failing at and breaking promises about? He explicitly promised to balance the budget based on THESE(GAAP)accounting principals. This is a huge fail, and on top of that to projest the rhetoric that the budget is balanced to score political points with blind followers is just wrong!!
To contnue to make excuses for Walker and using Jim Doyle as a stepping stone, is the EXACT same thing that we have all been told we cannot do when comparing Obama and Bush! So which is it?
http://www.politifact.com/wisconsin/prom...

Olderandornrier got it completely right, and I know he is a conservative, comment of the thread IMO-""NO. GAAP or not if the state is borrowing money to pay bills calling a budget balanced is a joke""

My largest question is , when will you and others start to hold your elected officials accountable for not telling the truth? Ill wait....

hdonlybob
Feb 2, 2012 at 11:15 a.m.
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Hey PoopShoot,
So please answer my question/statement on the budget based on what I said, not what your continued ranting always says.
Here was my question in case you didn't even read it:
"USE THE EXACT GUIDELINES THAT DOYLE USED"

Olderandornerier
Feb 2, 2012 at 7:35 a.m.
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NO. GAAP or not if the state is borrowing money to pay bills calling a budget balanced is a joke.

MooShoo
Feb 2, 2012 at 5:32 a.m.
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Hobbob, the unbalanced budget is your Governor's budget. Walker made a campaign promise balance the budget. So why is it not balanced...because he lies. When are conservatives going to see through this guy? He is flawed, dishonest, and nothing more than a career politician. Ask yourself, where is his balanced budget, 250,000 jobs, honest government? He is too busy with other things like boot licking for out-of-state campaign contributions.

DavidG
Feb 1, 2012 at 8:49 p.m.
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Simple. The governor and his legislative friends are deciding what counts. Not being an accountant, I can't comment but it should be easy to look up how other states do their math.

It would be a surprise that revenue from things like sales tax are increasing in the state. We have a state legislature that chooses to send teachers out in the cold and put their future at risk. How many of them are buying cars? Same with other state employees? Bringing down the average income in the state is not going to help the bottom line.

Kleej
Feb 1, 2012 at 8:44 p.m.
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Sad that most of the people complaining about the government not being able to balance a budget, are the same people who can't balance their own budget in their own home. Be the change you wish to see.

mruglyhands
Feb 1, 2012 at 7:37 p.m.
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I understand what you're saying and I'm still looking forward to voting for Scott Walker again. The progress he has made fixing what Doyle left for him is phenomenal. Obama could learn a few things here from Walker on how to get it done.

hdonlybob
Feb 1, 2012 at 4:43 p.m.
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Answer to me is simple.
Use the exact guidelines that Doyle used.
It is a no brainer that way.
A wise man once told me to beware of figures, because figures can lie , and lair's figure.
Perfect example here.

baegucb
Feb 1, 2012 at 4:11 p.m.
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meh. McCallum kicked the can down to Doyle (whom I disliked) who then played accounting tricks transferring around funds. And then the can got kicked to Walker who seems to be playing accounting games. It's been going on for the past decade.

fearandrhetoric4dummies
Feb 1, 2012 at 12:43 p.m.
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I expect Mr Peck to leave some things out as he did when breaking down the Marquette law school poll.

fearandrhetoric4dummies
Feb 1, 2012 at 12:42 p.m.
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EXCELLENT , at least the myth has been dispelled. Because for months that is all we heard from conservativce bloggers. Now Scott will have to run on a different fib, or just keep lying.
Nicksmom, couldnt agree more!!

nicksmom
Feb 1, 2012 at 10:23 a.m.
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Regardless of political party affiliation I find it best to take everything that comes out of a politician's mouth with a grain of salt. So no, I don't think the budget is balanced.

MadCityDad
Feb 1, 2012 at 10:01 a.m.
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"I thought Republicans understood accounting and finance"
.
Nothing could be further from the truth, MooShoo. If they did, we would never have had Reaganomics or the trickle down theory, NAFTA, recession in 1982, or our current depression. They only care about making the rich richer.

come_on_people
Feb 1, 2012 at 8:29 a.m.
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...With the attention focused on him, Walker won't be able to wheel, deal or steal the way Doyle did....

This comment actually made me chuckle. Really janesvillecomments? How did you type that with a straight face? Walker is a wheeler, dealer and stealer who doesn't care about the citizens of Wisconsin. I don't know how anyone can think that he's a fair, upstanding guy.

MooShoo
Jan 31, 2012 at 7:15 p.m.
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I thought Republicans understood accounting and finance. Too bad you elected a dishonest Governor, college drop-out, and career politician who gives you lip service for BIG CONTRIBUTIONS. His management experience is an office of two in the Assembly and a very incompetent and corrupt Milwaukee County Executive's Office.
*
Disgusting.

Zoom
Jan 31, 2012 at 6:48 p.m.
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The accounting method used by the State hasn't changed. That's the real problem. Walker promised to use GAAP principles in the budget process, but hasn't.

My guess is that Greg will explain the two accounting methods (cash vs. GAAP), but fail to point out that Walker hasn't fulfilled a campaign promise, and used the most poltically convenient methods when speaking to the public vs. the Federal government.

MooShoo
Jan 31, 2012 at 6:17 p.m.
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Usaret, don't be so quick to judge, Walker has not yet been indicted or recalled. But you are right, we are talking about soon to be the previous Governor, Walker.

usaret
Jan 31, 2012 at 6:06 p.m.
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MooShoo: You shouldn't speak ill of the previous Governor.

MooShoo
Jan 31, 2012 at 5:56 p.m.
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The unbalanced budget is a symptom of an unbalanced Governor.

MadCityDad
Jan 31, 2012 at 5:01 p.m.
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Think of it this way saxcat. Your checkbook balances and your family budget is tight, but you've figured out how to pay for gas and groceries this month. But not included is that $1500 big screen TV you bought for "90 days same as cash". Sure you're balanced now but what happens when the 90 days is up? You got the TV and agreed to pay for it so it's a legitimate debt and yet where will the money come from in 3 months? But it doesn't show up on this month's balance sheet so it's all good, right?

youkillme
Jan 31, 2012 at 4:19 p.m.
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"No more deficit spending as usual the way the budget was handled..."

But if Walker insists they have a budget deficit and increased state spending by $1.1 billion ...isn't that deficit spending as usual.

westorbust
Jan 31, 2012 at 4:06 p.m.
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Yes, we have a deficit. Republicans can play with the numbers all they want, but to deny the manipulation of the "perceived" deficit by the Governors administration which sole purpose was to entirely push forward social conservative policy and garner support for reducing the influence of public employee unions on the Democratic party, is ignoring the giant pink elephant sitting on your couch chugging that PBR.

janesvillecomments
Jan 31, 2012 at 4:04 p.m.
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I don't know if the budget is balanced or if Walker will be able to pay off the deficit, but at least he has everyone's attention focused on the issue now. No more deficit spending as usual the way the budget was handled during the Doyle mismanagement and malfeasance era.

With the attention focused on him, Walker won't be able to wheel, deal or steal the way Doyle did. If the Republicans lose control of the Senate, Wisconsin might actually have honest legislation for a term or two, or at least the two parties will have to cooperate to do their swilling at the public trough.

saxcat70
Jan 31, 2012 at 3:09 p.m.
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to me, a balanced budget means that you will take in as much as you spend over a certain time period. Any debt, will have the same balance at the end of the time period as it was in the beginning. someone will have to tell me if that is the case (can of worms opened).
The little reading I did on the GAAP makes me skeptical of it. reminds me of "seasonally adjusted".

garyprimer
Jan 31, 2012 at 3:05 p.m.
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Republicans are using budget deficits as a means
to pursue conservative social agendas.
Perhaps that was their plan in creating these deficits
from Ronald Reagan to George W.

youkillme
Jan 31, 2012 at 2:46 p.m.
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I don't think it matters how anyone draws the distinction except for the Walker Administration. They sent a letter to federal health secretary Kathleen Sebelius certifying that Wisconsin will have a budget deficit through 2013. You are going to argue with that?

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