A liberal-leaning Milwaukee think tank is out with a new report blaming state budget program cuts and public worker paycheck reductions for exacerbating Wisconsin?s job struggles. The report from the Institute for Wisconsin?s Future says the reduction in take-home pay for tens of thousands of public employees is now hurting the private sector, as are the drastic state budget cuts for K-12 education. Steve Deller, an economics professor at UW-Madison, says that reducing spending during a deep recession can often make things worse, as this blog chart suggests.
“Economic modeling shows that the extreme cuts to state and local programs cost thousands of jobs and put Wisconsin in a weak position to create jobs,” says Deller, who appeared at the Capitol on Tuesday with Norman and Rep. Brett Hulsey, D-Madison, to introduce the IWF report.