Rick's Tax Mix Nixed (Too Quick?)

Regressive Tax Swap Idea Dies a Speedy Death; Why Don’t I Feel Happy?

At a public forum last week, Rick Chandler, a member of the Governor-elect’s transition team, floated the idea of increasing the sales tax by at least two cents – as part of a plan to pay for significant reductions in income and property taxes. The idea was declared dead by the Governor-elect and other lawmakers almost before the public even got wind of the proposal.

In a new post on the Wisconsin Budget Project blog, Jon Peacock expresses relief that the the regressive tax shift was rebuked. However, that relief is tempered by disappointment that it now appears that any plan to shift or reform taxes, even in a revenue-neutral way, could be immediately denounced before there can be deliberative consideration of the merits of the proposal.

Read more here.

DREAM Act: Let’s keep our home grown talent here

Senator Harry Reid has announced that he will again bring the DREAM Act up for a vote in the US Senate after Thanksgiving. The Act, authored by Senators Orin Hatch (R-Utah) and Richard Durban (D-IL), provides a pathway to legal status for undocumented youth who entered the U.S. as children, graduated from U.S. high schools, and attend college or enter the military. For all intents and purposes, these children are American. Raised in the United States, they share more in common with their U.S.-born peers then with their parents' generation. They tend to be bi-cultural and fluent in English. Each year, tens of thousands of this generation of kids graduate from primary or secondary school, often at the top of their classes. Many have the potential to be future scientists, business owners, doctors, nurses and teachers. Yet through no fault of their own, their lack of status may prevent them from attending college, joining the military or working legally. The DREAM Act would provide an opportunity for kids to live up to their full potential and make greater contributions to their Wisconsin communities. To learn more about the DREAM Act go to the DREAM Act Fact Check.

Food Security in Wisconsin

With Thanksgiving two days away, the mind naturally turns to food. So here at the Wisconsin Council on Children and Families we are contemplating important food-related public policy issues, such as whether it’s better to put the stuffing in the bird or roast it alongside. Also: will the new legislature have the courage to address the long-unsettled issue of cranberry sauce made from a can vs. homemade?

On a less tasty (but also less fattening) note, we also wanted to draw your attention to new numbers on food insecurity in Wisconsin. A USDA report released earlier this month shows that the share of Wisconsin households with any food insecurity increased from an average of 8.9 percent over the 2004-06 period to 11.4 percent in 2007-09, a statistically significant jump. The percent of Wisconsin households with very low food security was 4.4 percent. 

Senate Approves TANF Extension, but Ends Contingency Funds

The U.S. Senate unanimously passed legislation Friday that would extend the basic federal welfare program, known as Temporary Assistance for Needy Families (TANF), through Sept. 30, 2011. The one-year extension is a stop-gap measure, in lieu of a 5-year reauthorization. The House is expected to concur in the bill during the lame duck session.

Unfortunately, the bill does not revive the TANF emergency contingency fund (ECF) and it cuts off funding for the regular Contingency Fund. The ECF, which was passed as part of the 2009 Recovery Act, enabled states to place adults with private employers and youth in summer jobs programs. The termination of both the ECF and the regular Contingency Fund will make it more difficult for the state to finance the sharp increase in W-2 participation that has occurred over the past two years.

Read more in a new Wisconsin Budget Project blog post.

Jon Peacock

Catch 22? Wisconsin Supreme Court on Contributing to the Delinquency of a 17 year-old

In a decision released this week, the Wisconsin Supreme Court held that a defendant, who provided a 17-year-old girl with Oxycodone, causing her death, was rightfully convicted of first-degree reckless homicide by delivery of a controlled substance and contributing to the delinquency of a child. The defendant argued that it was legally impossible to contribute to the delinquency of a 17-year-old. Why? Because in Wisconsin, for the purposes of investigation and prosecution, a 17-year-old is considered an adult. The court, however, rejected the defendant’s argument and held that the 17-year-old victim was a child in this context. The court further opined that proscribing the act of contributing to the delinquency of a child is “meant to protect children from those who would encourage them to become delinquent…[and] to protect children from harm by shielding them from the dangers of breaking the law.” 

In responding to the Court’s decision, Attorney General Hollen said, “[d]rug abuse often leads to tragic consequences, especially for younger users…I’m gratified that our supreme court held [the defendant] fully accountable” for the death of 17-year old Tanya S.. This does not address the question of how, on the one hand 17-year olds are considered adults yet in this context, the victim “was a child”. Things that make you go hmmmmm?

Interested in working to ensure that all 17-year olds are treated as children in the State of Wisconsin? Join the WCCF by signing our Justice for Wisconsin Youth Statement of Agreement available on our website: http://wccf.org/justice_statement.php.

How Big Is the Hole?

New estimates were released today on the size of the budget deficit Wisconsin faces over the next biennium.

The good news is that the figures are somewhat lower than other recent estimates.

The bad news, and there's always bad news, is too long to list here. Check out the newest post on the Wisconsin Budget Project blog instead for more about the size of the budget deficit, what that number includes and doesn't include, and how Governor-elect Walker's policies may change the size of the deficit.

BadgerCare Plus Growth Cushions Loss of Employer Coverage: Wisconsin Approaches National Average in Medicaid Participation

The Great Recession has caused a sharp drop in employer-sponsored insurance and a significant increase in public coverage, especially in Wisconsin. According to a report issued on November 16 by the Economic Policy Institute (EPI), the percentage of Americans with employer-sponsored insurance (ESI) fell in 2009 – for the 9th year in a row. Their analysis of data from the Census Bureau’s Current Population Survey (CPS) found that an estimated 7.2 million Americans below age 65 lost their employer coverage between 2000-01 and 2008-09.

Wisconsin started the past decade with a considerably higher level of employer coverage than most other states, but it has declined a little faster. The EPI report shows that about 318,000 Wisconsinites lost their ESI coverage since 2000-01 – a drop from 78.1 percent to 68.9 percent. The good news is that BadgerCare Plus picked up most of the slack last year and Wisconsin continues to have one of the highest rates of employer coverage (tied for 6th highest according to the EPI analysis).

Against the Conservative Tide, Many School Referendums Pass

Voters in Wisconsin yesterday were in a decidedly conservative mood when it came to choosing their governor, senator, attorney general, and other elected representatives. That created a difficult political environment for school funding referendums on the ballot, but in fact voters approved tax increases in slightly more than half the K-12 districts that were seeking increased school spending, as well as a large referendum for Madison Area Technical College.  

Read more in today's Budget Project blog.

HHS Announces New Federal Aid to Help States Implement Health Care Reform

The U.S. Department of Health and Human Services (HHS) took a couple of additional steps today to facilitate the state-level implementation of health care reform.  HHS announced two measures to help states assure a simple and seamless enrollment experience for consumers who qualify for Medicaid or who are shopping for health insurance in the Exchanges under the Affordable Care Act (ACA).

New Study Casts a Different Light on the Lament that Consumers Don’t Bear Enough of the Costs for Their Health Care

Is higher cost sharing an effective strategy for reducing health care spending? A new study published today in Health Affairs illustrates one of problems with the theory that increasing co-pays and deductibles will lead consumers to make more cost-effective choices about their health care. It suggests that decreasing co-pays may be the better policy choice for some types of health care treatments, in order to increase adherence to the appropriate treatment regime.