Here & Now

Nygren: Budget Is Disappointing

Zac Schultz:
Governor Evers also made the pitch for increased transportation funding, saying Republicans spent eight years kicking the can down the road on a long-term funding solution.

Tony Evers:
Were going to be increasing fees for titles and heavy trucks, and we do have to raise the gas tax. But as I promised all along, we’re sure as heck not going to raise the gas tax by a dollar.

[cheers and applause]

Tony Evers:
Gonna be less. It’s going to be less. We’re going to raise it eight cents a gallon, well below what they did over the river raising it by 20 cents in Minnesota and 18 cents in Ohio. But the good news is we’re also going to repeal a hidden tax that costs you 14 cents a gallon on gas. That means our plan actually makes possible for you to pay less at the pump than you do right now.

[cheers and applause]

Zac Schultz:
Last night, the budget took the next step forward when it was formally introduced to the Joint Committee on Finance. Earlier today I caught up with the Republican Co-chair of JFC, John Nygren.
Lets start with your first impressions of Governor Evers’ budget.

John Nygren:
First, I think the impression would be kind of disappointment. I mean he’s used a rhetoric about finding common ground, things that are non-divisive, yet we kind of had the insight of all the things that had been rolled out over the last several weeks. I would say it’s kind of a missed opportunity of being able to work with us. I mean there’s obviously from Republicans’ perspectives, there’s nonstarters in here. Significant tax increases, spending increases, but things such as, you know, driver’s card for illegal immigrants. Obviously that’s a very divisive issue, so it’s kind of counter to what the rhetoric he’d been using.

Zac Schultz:
Typically a governor uses their first budget to lay out their priorities. We’ve seen Governor Walker do that. Governor Doyle, Thompson. And then with the understanding that there’s going to be a lot of change in that budget. So why is it a surprise that he would lay out some of the things that even he may know he may not get but still wants to say this is what I believe.

John Nygren:
I think one of the biggest surprises is based on how the rhetoric he’s used. He’s not used rhetoric that’s been so divisive. He kind of campaigned as more of a moderate person. He campaigned that he wouldn’t raise taxes. Now he is. So I think, using his own words. You mentioned Governor Doyle. We’ve actually kind of gone back and looked at Republican reaction to Governor Doyle’s first budget. I think Tony Evers I think genuinely is a nice man, comes across as a very gentle man. But going back to looking at Republicans’ reaction and some of the things that Governor Doyle did in his first budget, this is even more, farther to the left than Governor Doyle is. So this is actually contrary to what he’s presenting himself as.

Zac Schultz:
So one of the big issues that we heard about first last night was transportation funding, eight cents a gallon increase in the gas tax. Republicans in your chamber have been looking for years to try and find a solution under Governor Walker. Are you still committed to the idea that more revenue is needed in transportation?

John Nygren:
Well, I think we’re still looking for — Republicans in the Assembly have, like as you said, historically been looking for a long-term funding solution. We still have — we are not a unicameral. We have two bodies of the legislature. We — reality check to Governor Evers, as majority leader pointed out last night. We still have a very conservative Republican members in both houses but specifically in the Senate that we have to be able to get support to pass anything. So, you know, I do believe that we’re committed to find a solution. I don’t know that the proposal that Governor Evers put out last night will meet that opportunity.

Zac Schultz:
He said he’s committed to the lowest amount of bonding for transportation that we’ve seen in a couple — or generation. Are you in line with that? Because it seems like Republicans have tried to limit bonding.

John Nygren:
My guess — if you go back, I don’t know the numbers off the top of my head, but I believe Governor Walker’s last budget was the lowest bonding in a generation. So I think that we’ve already demonstrated we don’t want to put this debt on and burden on our children. We want to pay for it now. So I think transportation, there’s some opportunity for us to find a compromise. But it’s not going to be a rubber stamp, that’s for sure.

Zac Schultz:
Now, what happens to the budget as a whole when you start removing things like Medicaid expansion or the elimination of some of the manufacturing tax credits that Republicans have said is a non-starter. Does the whole thing just kind of fall apart?

John Nygren:
Well, I mean where we start, I think, you know is obviously the biggest question right now. People have thrown out the idea of starting with a base budget. I think for me and you who have been around this building for a few years, maybe we understand that. I don’t think the general public necessarily understands that. So I think that’s more inside baseball. The question comes down to which pieces of Governor Evers’ budget are things that we can work together with him on. I mean, I think we’re going to focus on — we’re going to want to see a significant increase for K-12 education. Last budget had the largest one ever up to that point. Well this one is more than double that. So I think we have to be realistic. We can’t spend more money than we have. This budget increases the structural deficit by nearly $850 million, meaning we’re not going to have the money to pay for it into our next budget, increases the gap deficit by 75% after we had reduced it by nearly 60% over the last eight years. So the problem with this budget is sustainability.

Zac Schultz:
Governor Walker’s, one of his main budget priorities over eight years was keeping property taxes at or below where he came into office or 2014, depending on the moment in time we’re looking at. This has 1.7% increases in the first two years. $50 a year on the average — median taxpayers’ home. Is there expectation that some increase in property tax is okay or do you hold Governor Walker’s old line?

John Nygren:
Well I mean my understanding of the numbers my staff has put together, this is a working — we were up pretty late last night running the numbers. My understanding is it’s a $150 increase in property taxes on the median value home. So do I believe that we can continue to buy down property taxes throughout the state? I do not. Should we be buying down the growth of your personal — your home’s value? I think that’s a reasonable expectation, that as your home becomes more valuable, the tax burden could go up a little bit. I just don’t believe that the $150 number is appropriate.

Zac Schultz:
Governor Evers said last night we can’t afford to play politics with the budget. But the budget is inherently a political document. So is that naivety or is he playing to an audience out in the state that maybe doesn’t understand that?

John Nygren:
Well, it goes back to the comments I made about the rhetoric he’s using about working together. His proposal is anything but, anything but a unifying document. It’s actually very controversial, as we said, a number of things that are in it. Regardless where the public is on things such as in-state tuition for children of illegal immigrants, the driver’s cards, tax increases, marijuana. Those are all very divisive issues that if they’re going to be considered, they should be considered — we should have public hearings on them, separate, in a different document. So I think there’s a possibility with some of those more controversial items that we might maybe send them to a separate committee, the standing committees, and have them review those more in-depth.

Zac Schultz:
You have retained — Republicans have retained some of Governor Walker’s old budget writers. Some of the people have done that. How carefully will you be crafting the language you use with Governor Evers’ veto pen in mind?

John Nygren:
That’s the biggest concern in Wisconsin government, especially in split government, is the power of the veto pen. Now, while we’ve restricted that over the last ten years, I believe it’s estimated that the governor has the most powerful veto pen in the nation, still retains that. So that is definitely something that we will be watching. I don’t think you’re going to be seeing — while Democrats have complained about policy in the budget under Governor Walker, I would point out we pulled all those items out in the last budget. This has a number of policy initiatives in it. I don’t think you’re going to be seeing us looking to put more in. I think we’re probably going to be taking those out because those policy initiatives are the biggest opportunity for creative vetoing. I’ve got great staff. Some of them did work in the Walker administration in the budget office. So we’ve got a good expertise to help us out.

Zac Schultz:
Representative Nygren, thanks for your time.

John Nygren:
Good to be with you Zac.

Zac Schultz:
I spoke with Representative Nygren earlier today at the state capitol.