Sounding Off On Republican State Budget

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Sunday's Janesville Gazette contained two over-assuming anonymous calls about the Republican State budget proposal.

JG Sound Off Excerpt:
On education funding: A letter to the editor Tuesday indicates that Republicans are cutting spending for education. This is not true. Under the Republicans budget, there will be an additional $62 million given to the education system in Wisconsin. -- anonymous

Wow – thank you for your generosity.

Differences in Budgets:
The differences between the two parties are stark on issues such as taxes and higher education. The Assembly Republican budget would slash $96 million from state universities' basic budgets plus other cuts while Doyle and Senate Democrats would increase spending on higher education by roughly $225 million -- a difference in priorities of well over $300 million.

And that’s only higher education. I’m just roughing it here but most school districts are looking need a minimum increase of 3.2% in the next budget just to make ends meet. During 2003-2005, schools cost the state around $9.5 billion, so 3.2% would work out to about a $304 million necessary increase in shared revenue, all things being equal. Assuming as much as the anonymous caller is, the Republicans generosity turns out to be short $238 million just to balance. I'd say that's a cut.

JG Sound Off Excerpt:
On Tax Credit: Why is the Wisconsin Homestead Credit being changed? According to information I received, any person older than 65 would be ineligible for the credit. I think anyone over 65 and single probably needs it worse than married couples over 65. --anonymous

For some reason, the Gazette lets this statement go uncorrected. The caller either misinterpreted the information or it was a misprint. Only the Republicans are tampering with the eligibility requirements of the Homestead Credit - not the Democrats. Here's the scoop.

Republican Homestead Credit proposal:
Cuts $106.6 million from the Finance Committee’s funding level for the Homestead Tax Credit program, primarily by eliminating eligibility for single, childless adults who are under age 65; and also by indexing only the upper income limit for inflation, and not other formula factors, such as the maximum credit.

Why they would discriminate against childless single people under 65 is anybodies guess. The Homestead Credit is not only based on your adjusted state income tax figures but it also includes total household income, qualifying for it is difficult. The "childless" connotation also seems deliberate to confuse and shrink citizen opposition, perhaps they meant "dependents." Nevertheless, when you’re low income – YOU'RE LOW INCOME.

Beginning in 2008, Wisconsin will no longer collect income tax on Social Security benefits. Just when Democrats fight to make Wisconsin a senior friendly state, republicans want to take it away. With Democrats it's two steps forward – with Republicans, seniors take one step back.

The Homestead Credit changes in the Governors budget calls for the credit to be indexed for inflation while leaving the eligibility requirements intact. Currently the formula has been the same since 1991. The real value of the credit has fallen 27% since 1985.

This is serious business for seniors but it applies to anyone who previously qualified for the credit. It’s very simple. If you are a home owner living on a fixed income – get on the phone now!! and call your state representative and tell them to index the formula for inflation and leave the Homestead Credit eligibility requirements alone.

Here’s a JS Online article from July 9th spinning Republican budget cuts into an expansion for choice.