More bad news for Wisconsin Taxpayers

FOR IMMEDIATE RELEASE

Contact Shannon Stone, Campaign Manager, (920) 737-3546

The taxpayers of Wisconsin received more bad news on Friday, June 4. The Wisconsin Department of Workforce Development through Director John Dipko announced that Wisconsin had to borrow $1.42 billion from the federal government to make up for the insolvency in the Unemployment Reserve Fund. The previously received $134 million in stimulus funds wasn’t enough to offset the accumulating deficit.

The jobless receive $290 per week in Wisconsin, funded by employer payroll taxes, and with the jobless rate climbing, the projected deficit for Wisconsin’s unemployment fund will be nearly $3 billion by the end of 2011. There is no interest due on the borrowed funds in 2010, but beginning in 2011 the federal government will be charging 5 percent which means the interest alone could amount to $100 million. If the loans aren’t repaid, the federal government will tax Wisconsin employers for repayment furthering the devastating effects of an already anti-business climate in the state.

Dipko was quoted as saying, “We are coming out of the worst national economic times since the Great Depression. Unemployment insurance has been a critical lifeline for many workers who are out of work through no fault of their own.” But by borrowing from the federal government facing its own gargantuan national debt in the trillions, Wisconsin is now at the top of a list of shame as one of the highest unemployment fund debtor states in the nation.

This is just one of the many examples of the lack of leadership and foresight from our state Representatives, Senators, and Governor that has increased state spending 7.9 percent during a looming recession. The increase in spending forced taxes to increase approximately $4.5 billion and includes such taxes as combined reporting, increased download fees, cell phone fees, and a litany of other fees.

Companies such as Newpage, Polaris, and Briggs & Stratton are leaving for other states due to the high cost of doing business in Wisconsin. Harley-Davidson is also cutting employees and considering other locations for its manufacturing business. Miller Coor is threatening to move production out of Milwaukee due to an over 50 percent increase in water rates proposed by the Milwaukee Water Department serving under Mayor Tom Barrett. Mayor Barrett is the Democrat Gubernatorial candidate. Manufacturing jobs add a huge amount of money to the Unemployment Reserve Fund. But it’s the taxpayers who contribute to the fund for state employees; it’s easy to extend the lines on where this is going.