Frederica Freyberg:

Following the budget address, we spoke with Jason Stein, research director of the Wisconsin Policy Forum for his take on the budget numbers. What stands out in this address?

Jason Stein:

I mean really the really substantial funding increase for a whole variety of priorities. You start with schools, health care, things like that. Things we would traditionally be expecting but then you throw in more than $290 million for Miller Park, $240 million for family medical leave, $750 million for broadband. It’s even those non-traditional priorities easily above a billion dollars just those three.

Shawn Johnson:

How does this compare to previous budgets?

Jason Stein:

It’s unlike anything we’ve ever seen before in our numbers going back 40 years so it’s really unprecedented. It does allow for both parties to think big, whether that’s on the tax cut side or on the spending side. At the same time, a lot of substantial increases here that will lower the state’s reserves substantially which is appropriate but I think the spending that is happening may be difficult to sustain in the next budget.

Frederica Freyberg:

As to the tax cuts, the governor regards them as tax cuts for the middle class opposed to what we understand Republican budget writers are interested in which may well be a flat tax. How do these two plans compare?

Jason Stein:

The first thing is the governor has a mix of both tax increases that would primarily fall on upper income earners and tax decreases that would be primarily be for low and middle income earners. Whereas the Republican plan is essentially putting forward a very large tax cut that also would be difficult to sustain in future years. It would over a four year phase in eventually ramp up to $5 billion a year.

Frederica Freyberg:

Do you feel like there’s more compromise to be had in this budget?

Jason Stein:

The governor’s big signature proposals you would not expect them to go through as passed but in areas like aid for local governments which we call shared revenue, in perhaps Miller Park or the Brewers stadium, now American Family Field, in some of those areas repealing the personal property tax you could expect to see some give and take and maybe an ultimate compromise proposal.