Wisconsin’s primary election campaign for governor wraps up Aug. 11 with a vote that has drawn national attention, especially on the Democratic side of the ballot, but mainly for reasons that involve surprise candidate drop-outs and federal issues that have little or nothing to do with running government in Wisconsin.
Articles 1, 4 and 6 of the U.S. Constitution plus its 10th Amendment outline what duties are reserved for the federal government and which affairs fall within the domain of the states. Calls to abolish ICE and raise the federal minimum wage may excite true believers, but they’re beyond the scope of state government to control.
Now is the time for the winning Democratic candidate and presumptive Republican nominee Tom Tiffany to debate issues that matter to Wisconsin – especially as they relate to state government’s role in the economy and managing its major institutions. Here are two of many examples.
Let’s rethink Wisconsin’s tax system
Wisconsin is flirting with a property tax rebellion. A chronic imbalance between state aid and local support has prompted record numbers of referenda and a declining approval rate at the polls. Are local schools and governments simply spending too much, as critics say, or does the revenue system need a reboot?
Wisconsin is 10th highest among the 50 states when it comes to property taxes. On the other end of the spectrum, about a dozen states are debating property tax repeals, rebates or swaps.
Some states are opting for higher local-option taxes, excise taxes or “sin” taxes to replace property taxes. Others are considering replacement taxes that focus on previously untouched categories, such as parts of the professional service economy.
There’s not much headroom for higher income taxes. Wisconsin already taxes income at rates beginning at 3.5% and rising to 7.65%, with its top rate being higher than all other Midwest states except Minnesota (9.85%). Nine of 50 states don’t tax income at all; 15 already have a flat rate or are transitioning to a flat rate.
A sub-category is state income taxes on capital gains, which if lowered could attract businesses from high-tax states such as California, Oregon, New Jersey and New York.
If not through income taxes, how do other states pay for state services, from roads to parks to schools? Sales taxes are one answer, with 31 states levying taxes higher than Wisconsin’s 5%. Major service industries in Wisconsin are not subject to sales taxes at all.
Opposition to taxing professional services would likely prompt full employment for Capitol lobbyists in Madison, but it would also force a debate.
It’s a time of change for the Universities of Wisconsin. Seize the moment
The search is on for a successor to Jay Rothman, who the Board of Regents fired as system president for murky reasons. The same is true for replacing UW-Madison Chancellor Jennifer Mnookin, who left for the ivy-covered walls of Columbia University. The next governor can appoint new UW Regents as terms expire, and 2027 will bring a fresh state budget debate.
In short, it’s an ideal time to consider modernizing the 1971 deal that created what was then called the University of Wisconsin System.
There’s a world of difference between the make-up and needs of a UW-Superior or a UW-Parkside and the UW-Madison. That’s not to throw shade on Wisconsin’s other four-year universities, but the UW-Madison competes at an entirely different level.
That’s true for other leading publics such as the University of Michigan, as well as top private universities (have I mentioned Columbia?) when it comes to research dollars, faculty and students.
The next governor should propose giving UW-Madison power to set its own tuition rates and grant some independent bonding authority so major projects don’t take half a generation. In exchange, UW-Madison should pledge to admit more bright students from Wisconsin, some of whom are passed over because students from other states and nations pay higher tuition.
Those are two of many issues elected state officials can address. As dysfunctional as the federal government may be, it’s beyond the direct purview of governors to fix it.
Still is past president of the Wisconsin Technology Council. He is an adviser to Competitive Wisconsin Inc., a non-profit policy group.
