I wrote an op-ed that I trust will appear in the papers before November 4th. Here it is: I’m honored to have received the endorsement from the editorial board of the Marshfield News Herald! Gannett also endorsed Rep. John Spiros, Sen. Jerry Petrowski, and Governor Scott Walker. When you clear away the fog of the campaigns and people sit down to listen to the plans and review the achievements of the last four years, there is a real record of accomplishment that is undeniable. Even so, politicians and talking heads continue to use big numbers to try to confuse you and me with big numbers without putting them in context. That’s why all of the numbers referenced in this article have percentages of the State’s annual revenue in parentheses next to them. There is still a lot of “mystery” and confusion about several issues that I’d like to clear up. As a member of the State Assembly, I have ready access to the non-partisan Legislative Fiscal Bureau (LFB) and the real numbers. I’ve been on the phone or visited the LFB in person more than a dozen times and have received answers to my questions. Let me walk you through what I have learned. Let’s start with the budget. We ended the fiscal year on June 30, 2014 with an actual surplus of $517 Million (1.47%). That is not a projection or an estimate, but an actual amount that comes from the Annual Financial Report that was released on October 15, 2014. June 30, 2014 is half way through the biennial budget cycle, and we should end up with money in the bank at the end of the biennium on June 30, 2015. So why are people running around as though their hair is on fire about a possible budget deficit? Especially a budget that (1) hasn’t been proposed by the Governor or been looked at by the Joint Finance Council, (2) doesn’t take revenue growth into consideration, which has averaged 2.9% over the last ten years, and (3) that ends more than 32 months from now on June 30, 2017. This is like someone telling you what the soup tastes like before you have had a chance to pick out the ingredients! Another misunderstood issue is Medicaid Expansion and whether or not Governor Walker should have accepted funding from the Federal government. I have met several times with the LFB and the Office of the Commissioner of Insurance. I learned that the Federal tax credits that people between 100% and 133% of the Federal Poverty Level (FPL) are a direct offset to the $184 Million (0.5%) that we are not “getting” from the Federal government in fiscal year 2014-2015. Those Federal tax credits offset as much as $50 Million per year, and will grow as enrollment in the exchanges grows. We have a unique approach to health coverage in Wisconsin. We cover pregnant women and children under 300% of FPL and everyone under 100% of FPL. This is much more generous than many other States in the US. I’ve written before about the Comprehensive Annual Financial Report (CAFR) that is prepared by the Department of Administration, Division of Executive Budget and Finance, State Controllers Office and audited independently by the non-partisan Legislative Audit Bureau. This report is prepared according to Generally Accepted Accounting Principles (GAAP) and is the true picture of what has happened in the past year. In conversations with the people who produce, audit, and study the CAFR, I know it removes and exposes the accounting gimmicks that are often employed by talking heads and politicians. As I review the CAFR, I continue to be impressed with the progress that has been made in the past four years. This progress includes the following: • Repaying over $200 Million (0.6%) that was owed to the Injured Patients and Families Compensation Fund due to a transfer made during the previous administration. (an insatiable need for more money and a lack of financial discipline in the previous administration) • We paid back the Federal Unemployment Trust Fund more than $1.4 Billion (4.0%) and we currently have a surplus of more than $200 Million (0.6%). This will save every employer from paying a surcharge in 2015 for the first time in years. • The “rainy day” fund now has $279 Million (0.8%) dollars in it compared to $16 Million (0.05%) in 2011. We have proven that putting money back in your pockets has led to budget surpluses. We’ve charted a course for a smaller, more efficient government that is more responsive to the citizens of this great State. I’m confident that trend will continue with steady hands at the helm of the State. We will continue to make investments in the workforce, education, and children and families. We’ll highlight the pathway to the American Dream for everyone that has the desire to achieve it! There is a lot of work left to be done in Madison for this District and the State. There are challenges ahead as well. I look forward to serving you there with honor, dignity, and respect. I will do that with intellectual honesty and curiosity, because that is what you continue to expect from me! Bob Kulp
Posted on: Mon, 27 Oct 2014 05:33:00 +0000
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