On November 4th, the people of Wisconsin will be asked if they want to “protect” the state’s transportation fund. The motivation, proponents say, is the $1.4 billion “raid” on the transportation fund during the Doyle administration. The implication is that the people who pay gas taxes have been shortchanged and that their interests need to be protected with a constitutional amendment.
The problem is, proponents of this amendment have used misleading language. It is true that Jim Dolye used some budget voodoo to allow the state to issue general obligation bonds to fund the operation of schools and other non-capital items. But it would be a mistake to assume that Wisconsin’s motorists have suffered an injustice.
In fact, it turns out the opposite is true: As we sit here today, the state is on course to have a 12-year net transfer of $300.8 million from General Purpose Revenue to the Transportation fund. Last weekend, Assembly leader Robin Vos suggested much of the $680 million “shortfall” projected for the next state transportation budget would be addressed by diverting more general purpose revenue into highways. Want to see the proof?
The first thing to look at is the Legislative Fiscal Bureau’s paper on the use of transportation funds. Check out item 24 for the 12-year net:
You can see from the top line where the so-called raid occurs, but if you look at the next two lines, the big picture becomes clear: Between the $1.3856 billion of General Fund-Supported Bonds and the $361 million of reverse transfers, the 12-year net (see rightmost column on bottom row) stands at $300.8 million from general purpose revenue to transportation.
But just to make things even clearer about how well payers of the gas tax have been served by the state, check out this graphic from WISDOT’s 2012-2013 budget trends report:
That upper blue line is the Highway Construction budget. If there was really a raid, what you would expect to see is a $1.4 billion crater during the Doyle Administration years(2002-2010). But instead, there is a massive peak in 2009 that exceeds the spending during every year of the Walker administration. Where did that peak come from? The Stimulus! And remember, that stimulus money was borrowed from the general federal fund.
So my fellow Wisconsin motorists, do you feel threatened enough to warrant passing a constitutional amendment?
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