Republican State Lawmakers Say $1B Saved From Act 10 Is 'Welcome News'

Updated at 3:40 pm to reflect new input from the Governor's office regarding Racine County.

A state lawmaker who represents a good part of Racine County is praising Gov. Scott Walker’s announcement that the state’s controversial budget repair law has resulted in $1 billion in savings. Act 10 - the budget repair bill - significantly limited public unions in collective bargaining.

State Rep. Robin Vos, R-Rochester, released the following statement after Walker appeared in Manitowoc Monday morning where the governor made the announcement:

“The fiscal reforms are paying off for Racine County and the entire state.  The $1 billion in savings is just the beginning of the benefits from the smart choices that were made for the financial future of the state.

"We are changing the way we do business in Madison. We're paying off our old bills and paving the way for future balanced budgets at the state and local levels.

"Our reforms helped us eliminate a $3.6 billion deficit in the state budget without major layoffs, massive tax increases or a decrease in important government services.  Also, for the first time in more than a decade, property taxes for the median-value homeowner decreased. 

"The savings announced today include savings from the state, school districts and local governments. For school districts in my area, the savings are estimated to be more than $26 million.

"It's important to remember that the savings go well beyond contributions to healthcare and pension contributions. Many examples can be seen at the county level.  Racine County Executive Jim Ladwig has used the reforms to save taxpayers a significant amount of money.

The $1 billion in tax savings was made in less than a year from when the law went into effect, according to a news release from Walker’s office.

"This is a great day for the hardworking people of this state who pay for the expenses of government," Walker said in a news release.

Melissa Baldauff, WisDems research director, responded to Walker’s announcement in a memo to reporters, saying that Walker’s numbers do not add up.

“Like pretty much everything else Scott Walker says, this claim is a distortion of reality that is a blatant attempt to distract from Walker’s real record of failure and dishonesty,” Baldauff said in the memo.

Milwaukee Mayor Tom Barrett, who is running in the recall election against Walker, also commented about Walker’s announcement in this statement:

"Gov. Walker is desperate to distract attention from the fact that under his failed leadership Wisconsin lost 4,300 private sector jobs last month, and lost more jobs than any state in the country last year. What Walker isn't telling the people is that he made the deepest cuts to education in Wisconsin history, our state lost nearly 1,500 teacher positions over the past year, and we still have a $140 million budget deficit even though Walker raised fees on the people of Wisconsin by $110 million. This isn't a record to brag about – it’s a record that causes failed governors to be tossed from office."

In a news release to follow up on its original announcement, Walker's office pointed specifically at Racine County and how reforms have helped here:

Under the Governor’s reforms, Racine County implemented changes that benefit both tax payers and jail inmates.  A new program previously blocked by union leaders, allows the county to offer non-violent jail inmates the opportunity to volunteer to mow medians, in exchange for a reduced sentence.    

“The program’s fantastic, really, to me.  It’s a winner.  We didn’t lay off employees as a result, but what we did is we improved the image of the community,”  said Jim Ladwig, Racine County Executive.  “As a result of Act 10 passing, we are able to utilize that creative solution, where if that had not occurred, we would not have been able to.”

In Racine County, pension contributions alone saved taxpayers about $1.5 million.  They also saved by making changes to overtime rules.  This year’s budget held the line on taxes.