Big Numbers Drive Budget Decisions
Which 5 programs account for 84% of state budget? And when was the beer tax last increased?
Cash. (CC0 Creative Commons).
Gov. Tony Evers will give lawmakers his proposed two-year state budget on Feb. 21. To put some of those numbers in that budget in perspective, here is a version of Trivial Pursuit – State Government Edition.
Our first question: State’s government’s general-fund account (its checkbook) gets what percentages of revenue from just two taxes — the personal income and 5% state sales tax? The personal income tax brought in 44.8% ($9.21 billion) of general fund revenues and the state sales tax 34% ($6.97 billion) in the last budget year.
What is the third biggest source of general-fund income? The corporate income tax brought in 14.4% ($2.96 billion) of revenues last year.
What were the five most expensive general-fund programs last year? Aid to schools (Department of Public Instruction), $7.22 billion; health care (Department of Health Services), $4.43 billion; aid to local governments/property tax relief, $2.55 billion; prisons and community supervision, $1.3 billion; and the UW System, $1.19 billion.
Those five programs account for what percent of all general-fund spending? About 84%.
Evers and Republican legislators vow to cut personal income taxes, a tax that can fall with national economic downturns, leaving the state with less money. How many times in the last 30 years have Wisconsin income taxes fallen? Four. (In 2001-’02, 2008–’09, 2009-’10 and 2013-’14).
When did Wisconsin raise its state sales tax from 4% to 5%? In 1982, the governor and Legislature raised the sales tax to 5% as a “temporary” change; 5% was made permanent one year later.
What are the state sales taxes – not including local government taxes – in Wisconsin’s neighboring states? Iowa, 6%; Illinois, 6.25%; Minnesota, 6.875%; and Michigan, 6%.
Evers has said he is willing to consider giving local units of government one-fifth of revenue from the 5% state sales tax. How much does each 1-cent of the 5-cent state sales tax raise? $1.39 billion a year
How many Wisconsin counties levy a local-option sales tax of 0.5%, on top of the state 5% sales tax? 68 of the 72 counties. Which four counties do not levy that local-option sales tax? Manitowoc, Waukesha, Racine and Winnebago.
How many Wisconsin adults and children got health care through the Medicaid program for low-income residents last year? 1.36 million, a 29% increase in five years. (Another 1.25 million residents get health care through the federal Medicare program.)
Which state tax is bringing in less money than it did 10 years ago? The beer tax, which raised $9.24 million in 2011-’12 and only $8.87 million in 2021-’22. When was Wisconsin’s 6.5-cents per gallon beer tax last increased? 1969.
What is Wisconsin’s tax on liquor and wine with alcohol content of more than 21%? $3.25 per gallon. When was that liquor and wine tax last raised? 1981.
What is Wisconsin’s tax on a pack of cigarettes and when was it last increased? $2.52 per pack, increased from $1.77 per pack in 2009.
For years, elected officials fought over how to pay for highways, bridges and other transportation programs. Registration fees for cars, SUVs and trucks were raised in 2019, and the fee for a vehicle title more than doubled – from $69.50 to $164.50. Is the Transportation Fund finally in good shape? Yes, thanks to those increased fees and $200 million more per year in pandemic cash from the federal government not scheduled to end until 2026.
Are owners of hybrid and ell-electric vehicles (whose cars use less gas and thus pay less of the state gas tax) paying their fair share to use our highways? You decide. In addition to the $85 state registration fee for cars (not including local wheel taxes), owners of hybrid cars pay $75 more and owners of ell-electric cars, $100 more per year. (Hybrid vehicles makeup 1.9% of the state’s vehicle fleet; all-electric vehicles, 0.2%.)
Spending on prisons and community supervision programs will cost the general fund $1.3 billion this year, more than the UW System’s $1.19 billion. What does it cost to house adult prison inmates per year? Last year, taxpayers paid between $72,105 (Boscobel) and $47,856 (Green Bay) to house male inmates in maximum-security prisons. The average per-inmate cost at the Taycheedah prison for women was $53,271.
Did you get at least one of those questions right? If so, give yourself a Wonk of the Month prize.
Steven Walters started covering the Capitol in 1988. Contact him at stevenscotwalters@gmail.com
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