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One stop shop: Wisconsin's GAAP debt/deficits

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One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Wed Feb 06, 2013 11:32 am

(updated 3-23-14)

In short, Walker has increased Wisconsin's Long Term Debt from $12.9 billion on July 1, 2011 (the day before his first budget went into effect) to about $16.5 billion by the end of the 2015 fiscal year (6-30-2015) in his new 2 year budget, barring any payments on the debt. Walker took out $558 million in loans for the 2011/12 budget as listed in this post (he deferred all the payments on the 2011/12 loans & restructured them off to the future), then borrows $2.05 billion more in the 2013/15 budget: http://host.madison.com/news/local/writ ... f887a.html

The two-year, $70 billion state budget signed in July authorizes an additional $2.05 billion in borrowing...
~$2.05 billion in new borrowing plus an estimated $740 million in interest.

Official figures from Wisconsin's Legislative Fiscal Bureau (LFB) showing that Walker borrowed $558 million in 2011/12 with $156 million in added interest for a grand total of $714,398,748: http://bdgrdemocracy.files.wordpress.co ... nehout.pdf

Loan payments:
2013-14- $98.431 million
2014-15- $98.426 million
2015-16- $83.630 million
2016-17- $83.619 million

2018-19 62.206 million
2019-20 52.255 million
2020-21 41.777 million


... with payments gradually dropping each year until it's down to $472,500 in 2030/31

Walker Admin. tells the Feds Wisconsin has an annual GAAP deficit and $3.02 billion debt for 2012/13, which is up from $2.7 billion when he took office: http://www.wha.org/Data/Sites/1/medicai ... -11-12.pdf
In the Budget in Brief that accompanied the Governor's 2011-13 budget message the administration projected that the GAAP deficit for the state would be $2.99 billion in 2011-12 and $3.02 billion in 2012-13.


Wisconsin's Annual GAAP Deficit was $2.7 billion in October 2010 shortly before Walker took office (Oct. 16, 2010): http://www.jsonline.com/business/105115159.html Paragraph 17
“Doyle inherited a $3.2 billion deficit that now stands at $2.7 billion.”
Note that Doyle reduced Wisconsin's debt by $500 million, and that Walker has increased it by $320 million so far.

Forbes: http://www.forbes.com/sites/rickungar/2 ... t-deficit/

"Will Gov. Scott Walker Ever Come Clean On Wisconsin's Budget Deficit?"
In a letter sent by Mike Huebsch, Walker’s Administration Secretary, to the U.S. Department of Health & Human Services just two months ago, Huebsch disclosed that the state of Wisconsin would have an ‘undisclosed deficit’ from January, 2012 through June, 2013.

... it was necessary for the Walker Administration to tell HHS that his state is running a deficit... so he can hold onto the opportunity to place more than 50,000 Wisconsinites in danger of losing their only access to health care.

... There is the “cash method”— the one utilized by the Wisconsin legislature and Gov. Walker... (that) does not take into account the reality (of) upcoming obligations... As a result, cash accounting rarely presents a true picture of an organization’s finances...

GAAP (Generally Accepted Accounting Practices) accounting takes into consideration the money expected to come in and the money committed to going out in order to work out where an organization actually stands.


Walker broke an explicit promise from his 2010 gubernatorial campaign to “require the use of generally accepted accounting principles to balance every state budget.” http://web.archive.org/web/201012300612 ... ent-reform

Wisconsin's Long Term Debt up $1.3 billion since June 30, 2011, the day before Walker's 1st budget went into effect

Wisconsin's long term debt as of June 30, 2011 ~ Table 8 at the top of page 33 under "2011 total":
ftp://doaftp1380.wi.gov/doadocs/2011CAFR_Linked.pdf

$12.9 billion

Wisconsin's long term debt as of December 15, 2012; Page 19, Table 10: http://legis.wisconsin.gov/lfb/publicat ... suance.pdf

Table 10: Outstanding Principal on State Bonding
Programs
Outstanding Debt...
Total $14,197,603,521


The LFB says that both the June 30, 2011 and December 15, 2012 Long Term Debt figures are calculated using the same parameters. According to the LFB, the Long Term Debt figures include:
the total of state general obligation debt, state revenue obligation debt, and state appropriation obligation debt.


Annual GAAP deficits from the LFB. Page 33: http://www.doa.state.wi.us/debf/pdf_files/bib1315.pdf
2012/13 ~ $2.056 million

2013/14 ~ $2.359 million

2014/15 ~ $2.645 million


*edit for update on Long Term Debt total in 1st paragraph
Last edited by jonnygothispen on Sun Mar 23, 2014 9:48 pm, edited 6 times in total.
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Wed Apr 10, 2013 10:32 am

Walker seeks to borrow another $2.1 billion with an estimated $800K in interest...
http://www.jsonline.com/blogs/news/201128821.html
Madison -- Gov. Scott Walker is asking for more than $2.1 billion in new borrowing as part of his two-year budget proposals.

That bonding to build roads and new state buildings would amount to nearly 16% of the state's existing debt levels, according to an analysis from the Wisconsin Taxpayers Alliance.

Walker is requesting $1.03 billion as part of his 2013-'15 budget for the state's ongoing operations, essentially road and bridge building, and an additional $1.15 billion for building capital projects such as new buildings.

That would add to a trend of rising total debt for the state since 2002, the taxpayers alliance report found. The total state debt has risen to $13.6 billion in 2012 from $5.8 billion in 2002.
(Wisconsin's Long term Debt is actually $14.2 billion as of 12-15-2012)
Unbelievable...

Not to mention the amount of debt Walker added to the June 30, 2011 GAAP Long Term Debt figure of $12.9 billion since he and the GOP legislature passed 5 corporate tax breaks in early 2011 that is included in that total: http://www.politifact.com/wisconsin/sta ... ax-breaks/
The group says the $2.3 billion in tax breaks over 10 years is part of the 2011-2013 budget that was proposed by Walker and modified and adopted by the Legislature. But the fiscal bureau reached its projection by considering tax breaks not only in the budget, but in five other business-related measures that were adopted by the Legislature early in 2011.


So there were 5 "business related" tax breaks that are included in the June 30, 2011 Long Term Debt figure of $12.9 billion. The total for 4 of them is $142 million...

Last paragraph: http://www.factcheck.org/2011/03/walkers-tax-cuts/
Lang says there is a fourth bill — AB4 and SB4 — that would add $25 million to the Economic Development Tax Credit program, bringing the total cost to about $142 million.

So Walker has added $1.44 billion in debt ($1.3 billion from June 30, 2011 to December 15, 2012 plus at least $142 million in early 2011 that is included in the June 30, 2011 $12.9 billion debt figure). And he's poised to add another $2.9 billion in debt for a grand total of $4.34 billion in additional debt due to his policies.

(updated with a correction to the June 30, 2011 Long term Debt figure, so that the increased debt accurately reflects what Walker has actually added)
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Wed Apr 10, 2013 12:54 pm

In summary...

Wisconsin's 6-30-2011 "Outstanding Debt" total ~ $12.922 billion

Wisconsin's 6-30-2012 "Outstanding Debt" total ~ $13.490 billion

Wisconsin's 12-15-2012 "Outstanding Debt" total ~ $14.2 billion


"Outstanding Debt" for June 30, 2011 & June 30 2012 -Table 8, page 34: ftp://doaftp1380.wi.gov/doadocs/2012%20CAFR_Linked.pdf

"Outstanding Debt" as of December 15, 2012 - Table 10 on Page 19:
http://legis.wisconsin.gov/lfb/publicat ... suance.pdf
Last edited by jonnygothispen on Wed Oct 16, 2013 1:45 pm, edited 1 time in total.
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby Woofer » Wed Apr 10, 2013 4:32 pm

Don't forget this little gem of a hit piece from the aborted 2006 campaign. So Doyle "lied" when he said he'd balanced the budget when GAAP indicated a $2.12 billion deficit. So what's Walker doing? Let's don't even get started on the "standards of integrity" bit...
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Wed Apr 10, 2013 5:22 pm

"Higher Standards" indeed!
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Mon Jul 08, 2013 8:36 pm

Page showing links to the CAFRs (Comprehensive Annual Fiscal Reports) back to 1995...

http://www.doa.state.wi.us/category.asp ... &locid=167
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Tue Jul 09, 2013 1:25 pm

The LFB's "State Level Debt Issuance" reports show an increase in Wisconsin's Outstanding General Obligation Debt of $1.2 billion from December 15, 2010 ($6.8 billion) to December 15, 2012 ($8 billion). This is consistent with the $1.3 billion increase shown by

The LFB releases it's "State Level Debt Issuance" report every 2 years..

Outstanding General Obligation Debt for 2010:Table 4 on page 13: http://legis.wisconsin.gov/lfb/publicat ... suance.pdf

Outstanding General Obligation Debt for 2012: Table 4 on page 13: http://legis.wisconsin.gov/lfb/publicat ... suance.pdf
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Thu Aug 29, 2013 7:41 pm

K Vinehout's latest on Wisconsin's debt: http://www.newiprogressive.com/index.ph ... &Itemid=56

Budget Myths Abound in Wsconsin

The budget increases borrowing by more than $2 billion...
... New borrowing only adds to the debt. As a result state debt reaches an all-time high of $14.7 billion
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Fri Feb 07, 2014 12:17 pm

Wisconsin's Taxpayer Alliance says that Wisconsin's total debt will be (got this in an email reply)...

Thus, we would use the $13,706,608 figure reported in the 2013 CAFR. The governor asked for $2.167 billion of bonding, the budget authorizes $2.049 billion in borrowing. Thus, the state would have $15.7 billion in outstanding debt at the end of 2015, less any amounts paid down....
That's a 2.8 billion increase in debt from the $12.9 billion on 6-30-2011 reported by the state in the 2011 CAFR (Comprehensive Annual Fiscal Report)

Wisconsin's 6-30-2011 "Outstanding Debt" total ~ $12.922 billion

"Outstanding Debt" for June 30, 2011 & June 30 2012 -Table 8, page 34: ftp://doaftp1380.wi.gov/doadocs/2012%20CAFR_Linked.pdf

It's also interesting to note that the CAFR reports, created by Walker appointees, shows a Long Term outstanding Debt increase of $800 million from 6-30-2011 to 6-30-2013, while the nonpartisan LFB shows a $1.2 billion Debt increase from 12-15-2010 to 12-15-2012.
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Mon Feb 10, 2014 7:03 pm

This is sort of interesting. Try a google search for news articles on the $2.049 billion in new borrowing approved for Walker's 2013-15 budget and this is what comes up... The $2.049 billion budget deficit for 2011-13.

http://www.google.com/search?client=saf ... 8&oe=UTF-8

Are they that clever?

Anyway, here's the DOA's June 30, 2013 CAFR debt total in table 8 on page 34: ftp://doaftp1380.wi.gov/doadocs/2013%20CAFR_Linked.pdf

$13,706,600,000

The LFB found an Outstanding Debt total of $14.2 billion as of 12-15-2012 - Table 10 page 19: http://legis.wisconsin.gov/lfb/publicat ... suance.pdf

The LFB alleged that they just started using the same method for outstanding debt as the DOA does in the CAFR. If that's true, then it looks like Walker's DOA may be manipulating total debt figures, since if they actually used $500 million to pay off the debt, they wouldn't have been shy about it. Gonna try to get some clarification on that and wrap this up, for now...
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Re: One stop shop: Wisconsin's GAAP debt/deficits

Postby jonnygothispen » Sun Mar 23, 2014 7:45 pm

http://urbanmilwaukee.com/2013/09/10/mu ... 1-51362897

The Debtor Governor
Figures from non-partisan Legislative Fiscal Bureau figures show Walker’s debt level the worst since 1970.

... Walker issued new debt in order to pay off $558 million in debt payments* that were due in 2011 and 2012. “It’s just taking one credit card to pay off another credit card,” says Fiscal Bureau analyst Al Runde. This, in turn, pushed the principal payments some 20 years into the future, which will add another $156 million in interest costs.

... under Walker the level of indebtedness has jumped to “5.26% in 2013-14 and 4.88% in 2014-15...

No governor, Republican or Democrat, has ever driven borrowing up this high. Going back to 1970, the Fiscal Bureau told Kertscher, the level of indebtedness was always below four percent. Typically the level was below three percent.

... Vinehout’s point was that it was “a myth” that the state eliminated the debt under Walker, as some have claimed. “This is false. In fact, state debt reaches record levels in the 2013-15 budget,” she wrote.

Once again, her statement is completely factual. Yet Kerstcher and the Journal Sentinel distort what she said in order to turn Vinehout into the issue,


* The $558 million in Debt payments is from $558 million Walker borrowed in 2011/12. It's not carried over from Doyle. And by restructuring it again, the interest increases even more: http://bdgrdemocracy.files.wordpress.co ... nehout.pdf

http://host.madison.com/news/local/writ ... f887a.html
The two-year, $70 billion state budget signed in July authorizes an additional $2.05 billion in borrowing, with $1.64 billion of it paid for with general fund revenues.
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