Gov. Walker’s administration announces economic growth, job creation failures

Republican Gov. Scott Walker got a bunch of bad news earlier today, as his administration announced tax collections for the fiscal year that ended in June were $281 million less than Walker’s administration had anticipated, leaving the biennial budget on pace for a $115 shortfall.

Walker’s administration also announced on Friday that private sector job growth was just a lackluster 1.3% from March 2013 to March 2014.

Wisconsin Gov. Scott Walker tried Friday to put a positive spin on the one-two punch of lackluster job numbers and a drop in tax collections that will likely put the budget in the red next year, while Democrats said the news shows that his policies are failing.

Walker’s administration reported Thursday that tax collections were $281 million less than anticipated for the fiscal year that ended in June. That puts the two-year budget on pace to be at a $115 million shortfall by June 30.

Adding to the bad news, the state Department of Workforce Development reported late Thursday that private-sector jobs grew just 1.3 percent during the 12-month period ending in March. State-by-state comparisons won’t be available until Sept. 18, but the slow growth is on par with Wisconsin’s last quarterly report when the state ranked 37th nationwide for 2013.

Predictably Gov. Walker downplayed the importance of his administration’s announcement of lackluster tax collection and job creation, saying the problems his administration created could be rectified by controlling expenditures and continued economic growth.

The real problem with Gov. Walker’s “solution” of controlling expenditures and continued economic growth is that Walker’s administration has tried to use “controlling expenditures” as a means of shoring up the state’s budget, but despite those efforts (efforts Walker has been touting in campaign ads no less) here we are with a hundred million dollar hole in the state’s budget. What’s more, relying on “continued economic growth” isn’t a solution, because the less-than-anticipated tax collections are a very real result of poorer than expected economic growth.

The fact of the matter is that what we’re now seeing is the end result of the policies enacted by Gov. Walker and his Republican rubber stamps in the Legislature, and the only way to “right the ship” is to start enacting policies that put more money into the hands of the poor and middle class residents of the state, instead of into the pockets of big corporations and the wealthiest Wisconsinites.


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5 thoughts on “Gov. Walker’s administration announces economic growth, job creation failures

  1. I’m sure Scott is working on his excuse for more poor results from his 3+ years and counting austerity campaign. Or maybe he will continue to blame the recall and the big-gubmint union bosses for his woes. Let’s send this carpet bagger packing come November and we can help start to heal the wounds to our fine state.

  2. So let’s see, we can’t give poor people tax breaks because they’ll just spend that extra money on food and housing, but rich people deserve tax breaks because they’re going to create jobs and pump money into the economy (and contribute to Scotty’s coffers). What happened? Seems like Scotty’s pals need to get with the program. Assuming there was a program to begin with.

  3. Controlling expenses. Continued economic growth. Really? Handing out deals to companies with a license to pollute or to cut half their WI workforce isn’t austerity. Selling away future generations in the bond market to pay for tax giveaways is the definition of fiscal irresponsibility. Destroying the purchasing power of the public employee sector spreads to small businesses, tourism, and eventually agriculture and the marketplace begins to collapse while companies hold wages down for everyone (right to work would finish WI off – nothing but chicken processing plants and low-end retail coming here once it’s passed). Refusing to invest in and accept investment from the Federal government in technology, alternative energies and transportation, education, citizen healthcare, etc., dampens job growth and leaves Wisconsin, its workers, and our children without the ability to compete. Walker isn’t pro-business, pro-prosperity, pro-marketplace, pro-austerity or pro-growth. But he sure is pro-Walker!

  4. We are indeed seeing the results of Walker’s insane adherence to Tea Party dogma. His first big mistake was turning down the federal stimulus money for high speed rail, which was compounded by his scuttling the Milwaukee operation of Spanish high speed rail car manufacturer Talgo.

    His other huge blunder was, of course, his union busting “budget repair bill” Act 10.
    Those things get discussed.

    Nobody, however, talks about the elephant in the room…the hacked voting machines that saved his sorry ass from the 2012 recall election.

  5. Anybody have any thoughts on the MJS editorial this morning? Are they hinting at a Burke endorsement? They seem to be doing a 180 on Doe. I can see them spreading out their chips because while there may be national rage on Obamacare, immigration and ISIS, it’s all about the poor state economy and scandals here and they seem to be cutting bait. Not all the way – the editorial ran on a Saturday after all. But someone over there seems to be merrily sawing away at the line. If that happens I must remember to tune into WTMJ radio.

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