Question No. 4: Gregg Underheim Response

Wisconsin is a high tax state. Our incomes are below the national average and our service provision is high; we tax our citizens at a high level compared to other states to provide those services.

What we have in Wisconsin is a revenue problem. We want services at a high level but we cannot and should not increase the tax effort we currently make. What we must do is find a way to increase our tax revenues without increasing our tax rates. We can do that by growing our economy and by retaining our wealthy citizens. Also, we must find efficiencies in government to save money.

First, let me address the revenue problem. We can grow our economy by making Wisconsin a more attractive place in which to do business. That means lower taxes, not higher taxes. Entrepreneurs and their friends look for environments in which they can make money. Currently Wisconsin does not fit the bill. Our high income tax rates and our regulatory environment discourage investment.

Furthermore, wealthy citizens leave this state because of the taxes. We all know people who now make Florida or Texas their home because of the low income taxes. Many of those people who leave would rather keep Wisconsin as their home. Unfortunately, it is just too expensive. When they leave we lose far more than their companionship. We lose their tax contributions, their charitable contributions, their civic contributions, and their investment contributions. There is an irony too delicious to ignore here. At one point WEAC, the teacher’s union, had on its web site instructions to its members on how to avoid Wisconsin taxes. One of the organizations that is most supportive of taxes increases was telling its members how to avoid paying the taxes it supported. (I would point out that WEAC is a strong supporter of my opponent, Mr. Hintz.)

Another goal that must be met is saving money by finding efficiencies in government. Let me provide some specific examples. There are too many school districts in the state of Wisconsin. Some small districts are very close to each other and very small. They should be combined. That would create savings in school costs. In Winnebago County Sheriff Brooks has advocated combining police services.

In healthcare there are saving to be made. In the purchase of drugs a more aggressive negotiating stance can be taken by the state. Provisions very similar to a bill I authored last session were incorporated in the state budget. Those provisions allow the state much greater power in negotiating with drug companies. To date those provisions have saved $16 million dollars. More can and must be saved.

In the Medicaid program a small percentage of the enrollees spend a huge percentage of the dollars. Many of those people have chronic illnesses. It is estimated by some experts that as much as $50 million is available to save. Tommy Thompson’s administration was not interested in the disease management programs that would make those savings available. Governor Doyle’s administration must step up to the plate and find those savings.

Wellness programs for state employees offer the potential for savings. Diabetes, high blood pressure, hip and knee replacements, heart attacks and strokes are all related to the epidemic of obesity. Wellness programs have the potential to provide significant savings of state dollars.

Finally, in corrections alternative-sentencing programs, when done correctly, can save money and not threaten public safety. However, those programs must be based on research tested and proven methods. It would be inappropriate to let each county create its own program when there are already programs that have been proven to work.

In conclusion, if we are to continue with our tradition of high service provision we must grow our economy, retain our wealthy, and find efficiencies in government in order to generate the revenue we need.