Fri March 1, 2013
Governor Walker Unconcerned About Sequester
Wisconsin's top Republicans say they're not worried federal sequestration will hurt the nation's economy, or ultimately, Wisconsin's state budget.
The budget Governor Scott Walker just introduced presumes that for the next two years, the economy will grow, and with it, grow tax revenue for state government. But if the economy slows, that could mean a budget out of balance.
Some economists are warning that the federal budget cuts brought on through sequestration could do just that. But Governor Walker says he's not concerned.
“No, because any way you slice it, there's going to be an impact in the terms of the economy. I mean the President and others have said this would have a negative impact on the economy, but the flip side of that is, taking more money out of the private sector through higher taxes obviously would have an impact as well.”
Walker says leaders ought to come up with a better package of cuts than the one scheduled to go into effect at midnight tonight. But he thinks cuts are the answer.
Assembly Speaker Robin Vos sounded a similar note, saying he did not expect the state budget would take a hit. “There's a much bigger impact on the expiration of the payroll tax deduction than there ever would be from sequestration.”
In addition to a general economic slowdown, the White House has warned that sequestration could mean a direct loss to Wisconsin of more than $41 million for K-12 education and $13 million in military spending.