Saturday, December 30, 2006

Time to take away the credit cards

The Journal Sentinel reports today that Wisconsin is out of control financially.

The state's financial books show that Wisconsin ended the last fiscal year with a $2.15 billion deficit, under accounting principles that are standard for private companies, according to a report that the Wisconsin Taxpayers Alliance released Friday.

Alliance President Todd Berry said the report represented a truer picture of state finances than what was shown with the method mandated under the state constitution and favored by elected officials for years. Using the state's measure, Wisconsin posted a $49.2 million balance for the fiscal year that ended on June 30.

"It's safe to say we're in the worst financial position of any state in the country," Berry said.

As much as I dislike the thought of additional taxes to try to pay this off, it is inevitable. With the governor and legislators that were just elected, the next two years will be open season for tax increases in Wisconsin.

But can't they at least try to keep it from getting worse? Some basic financial planning advise should be heeded before any taxing authority in Wisconsin applies for another proverbial credit card. Do not get locked into additional spending until you pay off your current liabilities.

Wisconsin is not in adequate financial condition to begin another spending spree.

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