{"id":12827,"date":"2024-09-19T21:23:34","date_gmt":"2024-09-19T21:23:34","guid":{"rendered":"https:\/\/wifamily.news\/?p=12827"},"modified":"2024-09-19T21:58:24","modified_gmt":"2024-09-19T21:58:24","slug":"misers-v-big-spenders-and-where-the-badger-state-fits-in","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=12827","title":{"rendered":"Misers v. Big Spenders \u2014 and where the Badger State fits in"},"content":{"rendered":"<p>This post originally appeared at <a href=\"https:\/\/www.badgerinstitute.org\/misers-v-big-spenders-and-where-the-badger-state-fits-in\/\">https:\/\/www.badgerinstitute.org\/misers-v-big-spenders-and-where-the-badger-state-fits-in\/<\/a><\/p>\n<div style=\"height:2px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"707\" src=\"https:\/\/e74sq7k37a8.exactdn.com\/wp-content\/uploads\/2024\/09\/wi-spending-comparison-web2-1024x707.jpg?strip=all&amp;lossy=1&amp;ssl=1\" alt=\"Wisconsin flag set next to a field of U.S. currency bills.\" class=\"wp-image-53499\" style=\"width:346px;height:auto\" \/><\/figure>\n<\/div>\n<p>Ever interested in how Wisconsin can spend less on government, we found fewer examples of parsimonious politicians elsewhere in America than we\u2019d hoped.<\/p>\n<p>How does Wisconsin\u2019s spending compare to other states?<\/p>\n<p>It depends which ones you\u2019re looking at and what sort of spending counts.<\/p>\n<h4 class=\"wp-block-heading\">State spending<\/h4>\n<p>There are two ways to compare government spending in Wisconsin to other states: a comparison of state spending alone and a comparison of combined state and local spending, a method that takes into account the fact that government services paid for at the state level in one place can sometimes be paid for at the local level in another place, or vice versa.<\/p>\n<p>When it comes to expenditures at the state level alone, Wisconsin is below the national average. Data compiled by the Urban Institute &amp; Brookings Institution Tax Policy Center show that Wisconsin\u2019s per capita state direct general expenditure in 2021 was $5,149, ranked 31st in the country.<sup>i<\/sup> The national average was $5,336.<sup>ii<\/sup> Wisconsin\u2019s per capita spending is also just slightly less than the average of the other Great Lakes states of Illinois, Indiana, Michigan, Minnesota and Ohio, which was $5,158.<\/p>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure data-wp-interactive=\"core\/image\" class=\"wp-block-image size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"569\" height=\"728\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/e74sq7k37a8.exactdn.com\/wp-content\/uploads\/2024\/09\/wi-state-spending-per-capita-2021.png?strip=all&amp;lossy=1&amp;ssl=1\" alt=\"\" class=\"wp-image-53480\" \/><button class=\"lightbox-trigger\" type=\"button\" aria-label=\"Enlarge image\" data-wp-init=\"callbacks.initTriggerButton\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-style--right=\"context.imageButtonRight\" data-wp-style--top=\"context.imageButtonTop\"><\/p>\n<p>\t\t<\/button><\/figure>\n<\/div>\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure data-wp-interactive=\"core\/image\" class=\"wp-block-image size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"568\" height=\"686\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/e74sq7k37a8.exactdn.com\/wp-content\/uploads\/2024\/09\/wi-state-local-spending-per-capita-2021.png?strip=all&amp;lossy=1&amp;ssl=1\" alt=\"\" class=\"wp-image-53481\" \/><button class=\"lightbox-trigger\" type=\"button\" aria-label=\"Enlarge image\" data-wp-init=\"callbacks.initTriggerButton\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-style--right=\"context.imageButtonRight\" data-wp-style--top=\"context.imageButtonTop\"><\/p>\n<p>\t\t<\/button><\/figure>\n<\/div>\n<\/div>\n<p>Of the eight states without an income tax, Wisconsin\u2019s state government spends less than three \u2014 Alaska, Wyoming and South Dakota \u2014 and more than the other five. The average of all states without an income tax is $5,639. If we remove what could arguably be called outliers, Alaska and Wyoming, the average is $4,415. Alaska and Wyoming spend on average $9,922.<\/p>\n<p>We can also compare combined state and local governmental spending, since the two budgetary streams are interrelated in Wisconsin as well as elsewhere. According to the Tax Policy Center, the average for all states for combined state and local direct general government expenditures was $11,087 per capita in 2021.<sup>iii<\/sup> Wisconsin spent $10,340, less than the U.S. average and, again, less than the average of $10,527 for the Great Lakes states.<\/p>\n<p>Looking again at combined state and local expenditures, the average of all states without income taxes is $11,123 compared to Wisconsin at $10,340. In this comparison, only Alaska and Wyoming spend more, an average of $17,947. In this comparison, South Dakota joins New Hampshire, Florida, Tennessee, Texas and Nevada as states that spend less, an average of $9,173.<\/p>\n<h4 class=\"wp-block-heading\">What would it have been?<\/h4>\n<p>Although per-capita figures are a helpful means of comparison between states of different sizes, it is also important to look how much Wisconsin would spend if its per-capita spending were the same as other states.<\/p>\n<p>Examining state-level expenditures only, Wisconsin\u2019s direct general expenditure in 2021 was approximately $30.28 billion.<sup>iv<\/sup> If Wisconsin had spent the equivalent of the U.S. average per-capita expenditure, it would have spent about $31.4 billion. If the state spent at the average level for Great Lakes states, it would have spent $30.33 billion. If it spent at the average level of states without an income tax, it would spend $33.5 billion. If we omit Alaska and Wyoming \u2014 and instead include only South Dakota, Texas, New Hampshire, Florida, Nevada and Tennessee \u2014 Wisconsin would spend at a per-capita rate of $4,292 for a total expenditure of $25.2 billion.<\/p>\n<p>When local expenditures are factored in, Wisconsin again falls somewhat below the national average. Wisconsin\u2019s combined state and local expenditure in 2021 was approximately $60.8 billion.<sup>v<\/sup> If Wisconsin\u2019s per-capita state and local spending were equal to the national average, total spending would be as high as $65.2 billion. Spending at the Great Lakes average would increase total state and local spending to approximately $61.9 billion.<\/p>\n<p>For Wisconsin to spend at a per-capita rate similar to states without an income tax, spending would increase to $65.4 billion. If Wyoming and Alaska are omitted, the remaining zero-income-tax states (South Dakota, Texas, New Hampshire, Florida, Nevada and Tennessee) spend at a per-capita rate of $9,713 \u2013 a rate that in Wisconsin would translate into spending $53.9 billion, or about 11.3% less.<\/p>\n<p><em>Wyatt Eichholz is the Badger Institute\u2019s Policy and Legislative Associate. He has a master of arts degree in economics from the University of Alabama.<\/em><\/p>\n<p><em>Any\u00a0use or reproduction of Badger Institute articles or photographs requires prior written\u00a0permission.\u00a0To request permission to post articles on a website or print copies for distribution, contact Badger Institute President Mike Nichols at\u00a0<a href=\"mailto:mike@badgerinstitute.org\" target=\"_blank\" rel=\"noreferrer noopener\">mike@badgerinstitute.org<\/a>\u00a0or 262-389-8239.<\/em><\/p>\n<h4 class=\"wp-block-heading\">More on Wisconsin\u2019s income tax<\/h4>\n<p>This essay is adapted from the Badger Institute\u2019s recent policy brief on the trade-offs in eliminating Wisconsin\u2019s income tax. The full paper, which examines how states without income taxes raise revenue, is <a href=\"https:\/\/www.badgerinstitute.org\/policy-brief-could-wisconsin-eliminate-its-income-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">found here<\/a>.<\/p>\n<p>var gform;gform||(document.addEventListener(&#8220;gform_main_scripts_loaded&#8221;,function(){gform.scriptsLoaded=!0}),window.addEventListener(&#8220;DOMContentLoaded&#8221;,function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&amp;&amp;gform.scriptsLoaded?o():!gform.domLoaded&amp;&amp;gform.scriptsLoaded?window.addEventListener(&#8220;DOMContentLoaded&#8221;,o):document.addEventListener(&#8220;gform_main_scripts_loaded&#8221;,o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook(&#8220;action&#8221;,o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook(&#8220;filter&#8221;,o,n,r,t)},doAction:function(o){gform.doHook(&#8220;action&#8221;,o,arguments)},applyFilters:function(o){return gform.doHook(&#8220;filter&#8221;,o,arguments)},removeAction:function(o,n){gform.removeHook(&#8220;action&#8221;,o,n)},removeFilter:function(o,n,r){gform.removeHook(&#8220;filter&#8221;,o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&amp;&amp;(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&amp;&amp;(i=n+&#8221;_&#8221;+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&amp;&amp;((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){&#8220;function&#8221;!=typeof(t=o.callable)&amp;&amp;(t=window[t]),&#8221;action&#8221;==n?t.apply(null,r):r[0]=t.apply(null,r)})),&#8221;filter&#8221;==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&amp;&amp;(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&amp;&amp;i!=o.tag||null!=t&amp;&amp;t!=o.priority)}),gform.hooks[o][n]=r)}});<\/p>\n<div class=\"gf_browser_chrome gform_wrapper gravity-theme gform-theme--no-framework\" data-form-theme=\"gravity-theme\" data-form-index=\"0\" id=\"gform_wrapper_21\">\n<div id=\"gf_21\" class=\"gform_anchor\"><\/div>\n<div class=\"gform_heading\">\n<h2 class=\"gform_title\">Submit a comment<\/h2>\n<p class=\"gform_description\">\n<p class=\"gform_required_legend\">&#8220;<span class=\"gfield_required gfield_required_asterisk\">*<\/span>&#8221; 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} }]);                if (event &amp;&amp; event.defaultPrevented) {                return;         }        const gformWrapperDiv = document.getElementById( &#8220;gform_wrapper_21&#8221; );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( &#8220;span&#8221; );            visibilitySpan.id = &#8220;gform_visibility_test_21&#8221;;            gformWrapperDiv.insertAdjacentElement( &#8220;afterend&#8221;, visibilitySpan );        }        const visibilityTestDiv = document.getElementById( &#8220;gform_visibility_test_21&#8221; );        let postRenderFired = false;                function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            jQuery( document ).trigger( &#8216;gform_post_render&#8217;, [21, current_page] );            gform.utils.trigger( { event: &#8216;gform\/postRender&#8217;, native: false, data: { formId: 21, currentPage: current_page } } );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate &amp;&amp; !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv &amp;&amp; visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) =&gt; {                mutations.forEach( ( mutation ) =&gt; {                    if ( mutation.type === &#8216;attributes&#8217; &amp;&amp; visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ &#8216;style&#8217;, &#8216;class&#8217; ],            });        } else {            triggerPostRender();        }    } );} );<br \/>\n\/* ]]&gt; *\/<\/p>\n<p class=\"has-small-font-size\"><sup>1<\/sup> US Census Bureau Annual Survey of State and Local Government Finances, 1977-2021 (compiled by the Urban Institute via State and Local Finance Data: Exploring the Census of Governments. Accessed August 13, 2024. <a href=\"https:\/\/state-local-finance-data.taxpolicycenter.org\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/state-local-finance-data.taxpolicycenter.org<\/a>. <\/p>\n<p class=\"has-small-font-size\"><sup>2<\/sup> Ibid. <\/p>\n<p class=\"has-small-font-size\"><sup>3<\/sup> Tax Policy Center. \u201cState and Local Direct General Expenditures, Per Capita,\u201d July 10, 2023. <a href=\"https:\/\/www.taxpolicycenter.org\/statistics\/state-and-local-direct-general-expenditures-capita\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.taxpolicycenter.org\/statistics\/state-and-local-direct-general-expenditures-capita<\/a>.<\/p>\n<p class=\"has-small-font-size\"><sup>4<\/sup> US Census Bureau Annual Survey of State and Local Government Finances, 1977-2021 (compiled by the Urban Institute via State and Local Finance Data: Exploring the Census of Governments. Accessed August 13, 2024. <a href=\"https:\/\/state-local-finance-data.taxpolicycenter.org\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/state-local-finance-data.taxpolicycenter.org<\/a>.<\/p>\n<p class=\"has-small-font-size\"><sup>5<\/sup> Urban Institute. \u201cWisconsin.\u201d Accessed September 10, 2024. <a href=\"https:\/\/www.urban.org\/policy-centers\/cross-center-initiatives\/state-and-local-finance-initiative\/projects\/state-fiscal-briefs\/wisconsin\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.urban.org\/policy-centers\/cross-center-initiatives\/state-and-local-finance-initiative\/projects\/state-fiscal-briefs\/wisconsin<\/a>.<\/p>\n<p>The post <a href=\"https:\/\/www.badgerinstitute.org\/misers-v-big-spenders-and-where-the-badger-state-fits-in\/\">Misers v. Big Spenders \u2014 and where the Badger State fits in<\/a> appeared first on <a href=\"https:\/\/www.badgerinstitute.org\">Badger Institute<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post originally appeared at https:\/\/www.badgerinstitute.org\/misers-v-big-spenders-and-where-the-badger-state-fits-in\/ Ever interested in how Wisconsin can spend less on&#8230;<\/p>\n","protected":false},"author":127,"featured_media":12829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-12827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-badger-institute"],"_links":{"self":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/12827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12827"}],"version-history":[{"count":1,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/12827\/revisions"}],"predecessor-version":[{"id":12828,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/12827\/revisions\/12828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/media\/12829"}],"wp:attachment":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}