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Does The State Have A Balanced Budget Or Not?

Journal Sentinel sorts out a discrepancy, but it's a little confusing as to Democrats as to why the Republicans can even begin to say they balanced the budget.

Budgeting is tricky even on a personal level, but it's not rocket science. Right?

Well, if you look at the state budget, it may be balanced, but there's still a deficit (at least when the feds are asking).

An official in the governor's office said Walker's administration has been saying the GAAP deficit is about $3 billion for last year and this year's fiscal year. But on the other hand, Walker and Republican lawmakers say they balanced the budget.

So how does that happen?

According to a story by the Journal Sentinel, it works like this:

For example, a consumer may have money in his or her bank account, but if a looming credit card bill is even larger, then he or she would have a deficit under that method of accounting. This so-called GAAP deficit isn't new to the Walker administration - it goes back years in state government to past governors such as Democrat Jim Doyle who also have said they balanced the budget on a cash basis while the GAAP deficit remained.

The point become relevant to Democrats as they see Walker justifying dropping 53,000 people from state-funded insurance programs.

The 2010 federal health law requires a state to maintain health coverage levels and not drop people from coverage programs for the needy unless the state can show that it has a budget deficit. In that case, states can drop certain recipients with higher incomes - a group that in Wisconsin works out to around 53,000 people.

But Rep. Robin Vos (R-Rochester), told the Journal Sentinel: "We're trying to address the GAAP deficit over time."

Read more of the story by clicking here.

 

skinnyDUDE January 23, 2012 at 08:13 PM
If you use the standard the the liberal Journal states . Jim Doyle was in deficit every single year he was Governor. The standards Walker sites to balance the budget were the one Doyle sited and still had a 3.2 billion deficit . Its a little late to do apples and oranges. Doyle also borrowed millions from Minnesota , raided funds and raise every fee he could think of on his watch. Walker corrected those crimes on taxpayers.. Where was the Milwaukee Urinal articles on that? This article is a non story . No matter how you look at the books . Wisconsin is in far better shape now than we were under Doyle . END OF STORY! Typical bait and switch story which is designed to have citizens think the state isnt in better financial situation now than it has been in decades. But if we use the standards Doyle uses he was 3.2 billion in deficit and by those SAME standards were in surplus. Its laughable but one must expect this from another dying liberal paper.
Eric January 23, 2012 at 08:33 PM
Agreed Skinny! Where also was the Urinal when Doyle slammed through his budget with all those tax increases in less then 24 hours? A far cry from the supposed rushing through the budget repair bill. This is just another example of why people in the country no longer trust those in the media. Because the media has become highly partisan and untrustworthy. If they aren't careful there approval ratings will fall below congresses.

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