"In January 2011, before Scott Walker took office, the non-partisan Legislative Fiscal Bureau (LFB) sent their annual letter to Joint Finance Chairs Alberta Darling and Robin Vos (2011_01_31Vos&Darling LFB Memo ). When Walker took office, the LFB forecast a $56.3 million SURPLUS – after accounting for the $65 million statutory “minimum balance.” That’s correct – Wisconsin was poised for a surplus on the day Scott Walker took office."
"Simply stated – Scott Walker pushed off paying state debt in the amount of over $500 million to 2030. The interest paid will total over $156 million. This is all debt that should have been by the end of 2011-2012. It is critical to understand that the deficit Scott Walker created in 2011, and decrease in revenue collections from his fiscal policies are the very reason this debt is being pushed off over two decades – placing a higher burden on future generations. In a memo to Vinehout dated May 18, 2012, non-partisan State Fiscal Analyst Al Runde details the impact:
'Under each debt restructuring
transaction, the principal on the state’s existing GPR supported general obligation and commercial
paper debt would have been paid off from the general fund through sum sufficient debt service
appropriations, but is instead paid off with the proceeds from the issuance of additional debt. As a
result, that principal will now remain outstanding for a longer period of time and thus an estimated
$156.2 million in additional interest costs could be incurred by the state.'
The debt principal would have been paid off from the general fund – but is now being paid off by issuing further debt. An additional $156.2 million in interest will be paid by the state. To use an apt metaphor, Scott Walker placed the existing debt, which should have been paid this year, on a giant credit card – to be paid long after he is out of office."
'Under each debt restructuring
transaction, the principal on the state’s existing GPR supported general obligation and commercial
paper debt would have been paid off from the general fund through sum sufficient debt service
appropriations, but is instead paid off with the proceeds from the issuance of additional debt. As a
result, that principal will now remain outstanding for a longer period of time and thus an estimated
$156.2 million in additional interest costs could be incurred by the state.'
The debt principal would have been paid off from the general fund – but is now being paid off by issuing further debt. An additional $156.2 million in interest will be paid by the state. To use an apt metaphor, Scott Walker placed the existing debt, which should have been paid this year, on a giant credit card – to be paid long after he is out of office."
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