Gov. Scott Walker said Monday taxpayers have saved $1 billion since his budget reforms took effect last spring, a claim that drew both praise and criticism from politicians around the state.
Walker said in a statement the $1 billion in savings was “just the start.”
The savings are largely due to spending cuts in areas like state employee benefits and the public education system implemented as part of Act 10, according to UW-Madison Economics Professor Andrew Reschovsky. However, Reschovsky warned, “One has to be very careful with interpreting [the numbers]” saying the announcement is primarily a talking point for Walker’s recall campaign and nothing new.
When Walker came into office, Wisconsin faced a $3 billion budget deficit and, according to Reschovsky, Walker had the choice to raise taxes or cut government spending to heal the deficit. Walker stuck to his platform and cut spending.
Even with the savings, Walker’s policy has been controversial with public employees around the state, who have had to pay more money out of pocket for benefits like health insurance and pensions as a result of Act 10. Backlash to the budget plan led to the recall efforts against Walker and four Republican state senators.
Reschovsky also said Walker only mentioned the savings in his announcement and not the spending cuts.
“He’s clearly highlighting those [positive] parts of the budget and not highlighting other parts like his reduction in the state funding of the UW system,” Reschovsky said.
Politicians around the state applauded and criticized Walker’s announcement. State Sen. Mary Lazich, R-New Berlin, praised the Walker Administration’s work balancing budget, saying the “results speak for themselves.”
“This is a milestone for Wisconsin taxpayers,” Lazich said.
But current Milwaukee mayor and leading Democratic opponent to Walker Tom Barrett disagreed, arguing Walker was trying to cover up his record of “failures” as governor.
“This isn’t a record to brag about – it’s a record that causes failed governors to be tossed from office,” Barrett said.
