Join the team to get involved!
As Governor, Mark Neumann will cut government spending using proven, responsible and controlled methods. Those spending cuts will then be used to balance the budget, repeal the Doyle tax increases, and cut taxes for every citizen of Wisconsin.
When Mark was in Congress (1995–1999), he used the same plan to balance the budget and cut taxes. In fact, Mark fought so hard to cut spending that the leaders of his own party—the Republican Party—kicked him off the Appropriations Committee. Mark is a proven, dedicated waste fighter who is running for governor because he believes career politicians are leaving our children and grandchildren with an unsustainable debt.
Mark Neumann relates the story of being kicked off a committee for refusing to spend your money.
Mark Neumann will limit how much the government spends each year to a rate of 1% less than inflation. Every department will have to create its budget with these spending restrictions.
Mark Neumann will fix the $2.5 billion deficit in his first budget as Governor. Mark Neumann will require honest budgeting and standard business accounting models in order to prevent career politicians from raiding segregated funds, borrowing money, creating deficits, and depending on federal stimulus dollars.
A simple rendering of how the difference between the spending caps will result in tax cuts.
Click the image to enlarge.
Mark Neumann will cut government spending across the board to balance the budget.
In Mark Neumann's first proposed budget, he will responsibly cut taxes as spending decreases. Over 8 years, Mark Neumann will cut taxes by 24%. The first installment in this commitment is spelled out in his plan to eliminate property taxes in 2011 with the biggest one-year tax cut in Wisconsin history.
Wisconsin's Legislative Fiscal Bureau estimated that the 2012-2013 biennial budget will have a $2.5 billion deficit. 1 That is, the amount of money coming into the government through taxes and fees will be $2.5 billion less than the money spent by the government.
It seems that career politicians on both sides of the aisle will spend your money without a second thought. Most of them have never run a business, so they haven't had to make the hard decisions in order to keep the lights on. Every year they focus on 2–3 spending cuts, but every year the overall spending increases.
The number of well-publicized examples of government waste has been increasingly numerous during Governor Doyle's two terms. Failed computer systems, fraud in the state child care system, and under management of health care costs are just a few examples. 2 Even when Governor Doyle was furloughing state employees, there was no different treatment of efficient vs. non-efficient employees. 3
Every year, we pay more taxes — income, sales, property, and other taxes and fees are squeezing Wisconsinite's wallets to the breaking point. Wisconsin is worse than many other states — in fact, we were the only state in the Midwest to raise personal income taxes in 2009. 4
Neumann's plan will cut taxes by 24% over 8 years.
Every two years, the Governor submits a budget proposal to the legislature for the following two years. 5 Mark Neumann's first proposed budget will at a minimum reduce real spending by 1% less than the rate of inflation. Over the next 10 years, this plan will eliminate an estimated $57 billion in spending from the budget (see Table 3).
Balanced Budget = Reduced Taxes
The Wisconsin Constitution requires that the budget is balanced every year. This means that the money spent by Madison must equal the money coming into Madison (taxes, fees, etc.).
Revenues come into the government in the form of taxes and fees. In general, taxes are based on a percent of the cost of the item and fees are a set-cost. As the cost of items increase with the rate of inflation, the revenue generated from the taxes also increase. As the number of items purchased increases with the GDP growth rate, the revenue generated by the additional taxes and fees also increase.
Every year, 1 dollar is worth less than the previous year. How much less is determined by inflation. For example, if 2010 inflation is 3%, $1 dollar in 2011 is worth $1.03 in 2010. The cost of goods and services and the average income increase at a rate similar to the rate of inflation.
|Real Economic Growth|
The size of the U.S. economy is measured by the Gross Domestic Product (GDP). When the GDP increases, it means that more goods and services are produced, and more people are employed to make those goods and provide those services. Real Economic Growth is GDP minus Inflation, or how much the economy grows faster than inflation.
Mark Neumann will require each department to submit a budget that fits his plan. When every department grows at least 1% slower than the rate of inflation, the entire Wisconsin government will systematically decrease in size.
If a department needs to grow spending faster than Mark Neumann's restricted limit, the department administrator will need to find comparable spending cuts in other departments. Wisconsin business and families recognize this as simply prioritizing spending. Government must learn this same practice.
Mark Neumann explains that his department heads will need to make their budget — or Wisconsin will find someone who can.
For example, the segregated transportation fund has been raided by irresponsible career politicians for many years — similar to how Washington politicians have raided the social security fund. In order to complete critical transportation projects, the Department of Transportation may need to spend additional money, but that must be offset with spending cuts in other departments.
Mark Neumann's first budget will have to deal with a $2.5 billion deficit left by Jim Doyle. 6 Wisconsin's Constitution requires that the budget is balanced, but career politicians always seem to find new loopholes and new ways to pass the buck to future generations.
Career politicians use dishonest budget practices, raid protected funds, and accept stimulus money from the federal government in order to "balance" the budget each year. The career politicians are simply creating annual deficits and accumulated debt that future generations will have to pay for.
The time to fix those problems and return to honest government is now. Mark Neumann will stop these practices, return Madison to principled budgeting practices, and start to pay the debt that past politicians saddled us with.
Career politicians spend us into debt and avoid the tough decisions by using accounting gimmicks and raiding segregated funds like transportation funds.
No More Shell Games Wisconsin career politicians have routinely 'balanced' budgets through use of accounting maneuvers, timing delays, borrowing and billions in one-time money. Mark Neumann will return Madison to honest budgeting practices that count every dollar spent and committed.
Maintain Segregated Funds
Segregated funds are created by law for a specific purpose and are filled from state taxes, federal funds, and bonds. Career politicians have continually raided these funds to pay for their pet projects or to fill budget holes caused by dishonest budget practices. Mark Neumann will not allow any segregated funds to be raided in his budgets.
Wisconsin was once a leader in reform. But we have not focused on government efficiency since the SAVE Commission in 1995.
Mark Neumann will look at all government programs and find areas of waste, inefficiency, and out-of-date programs. He will develop a list of recommendations to streamline government, make this list available for public comment, and put it before the legislature.
Wisconsin has not focused on government efficiency since the SAVE Commission in 1995. 7 We were once a leader of government reform. We must return to becoming a leader in order for Wisconsin to become the best place in the world for business.
Career politicians often find 2–3 specific areas of government they will cut. They repeat these same sound bites over and over again to try to convince voters that they are fiscally responsible. What they forget to say is that they will increase spending in every other part of government.
The only true way to cut spending is by focusing on the bigger picture to make sure the entire budget reduces spending. This is the plan that Mark Neumann brought to Congress that balanced the federal budget, and it's the plan that he proposes for Wisconsin to fix our budget problems and lead to tax cuts. This plan worked in Washington and it will work again here in Wisconsin.
By proposing specific spending cuts, career politicians often look for publicity — not what is the best way to comprehensively shrink government. You will never find the CEO of a company look at the ins and outs of a specific department to find areas to cut. Rather, the CEO looks at the big picture and determines what direction to take the company. Mark Neumann understands this, and it's just one more reason why the next Governor of Wisconsin must be from the private sector. He knows we need to reduce the size and scope of government across the board—not just tinker at the edges.
As revenues grow and spending is reduced, a budget surplus will become available and can be used to cut taxes.
Mark Neumann's plan will result in about 3% annually becoming available for tax cuts. Mark Neumann will focus the tax cuts on across-the-board income tax reductions and repealing Governor Doyle's tax increases.
Mark Neumann explains precisely how his plan of controlling spending to cut taxes will result in a 24% reduction in taxes across the board.
Governor Doyle's less-than-honest budget practices have created a $2.5 billion deficit that must be filled before taxes can be responsibly cut. Mark Neumann's plan fills this deficit in his first budget, with a surplus left over for tax cuts.
Lower taxes encourage businesses to grow — creating the economic growth that increases tax revenue to the state. Even with lower tax rates, there will be more tax revenue as businesses keep, create, or relocate to Wisconsin. This increased revenue can facilitate further tax cuts.
See Mark Neumann's plan for THE LARGEST TAX CUT IN WISCONSIN HISTORY for a parallel plan to reduce taxes by $11 billion in 2011.
"[Neumann's] an absolute prophet of balancing the budget, brilliant and idealistic."
- Newt Gingrich, NY Times Magazine
November 3, 1996
Mark Neumann will aggressively push to ensure that combined reporting is no longer an option in Wisconsin's budgeting process. Combined reporting requires related businesses to pay Wisconsin taxes if they are located in Wisconsin and have operations outside of Wisconsin. In other words, our state government increases taxes on Wisconsin employers who have plants and businesses around America and headquarters in Wisconsin. Neumann understands that punishing businesses through higher taxes only encourages them to leave Wisconsin with all of their jobs.
Combined reporting also adds expensive administrative costs. Wading through this confusing legislation means employers have to spend more money on accountants in addition to paying increased taxes.
Taxes like combined reporting contribute to Wisconsin's poor job market. It is now well-known that companies like Harley-Davidson and MillerCoors are being punished by combined reporting. Neumann will always oppose overly complicated tax codes and regulations that no one — especially those creating and enforcing them — can truly understand. Wisconsin does not need more taxes, it needs less taxes.
Mark Neumann explains that he will start cutting taxes by repealing Governor Doyle's tax increases.
Mark Neumann rejects the Keynesian theory of increasing government spending to end a recession. He believes that the more money the people keep, the stronger our economy will be. He also understands that in a recession, market prices must be allowed to reset from their previous highs. Pure spending does not solve this problem; pure spending exacerbates it.
'Stimulus' money is not 'free money' — it comes directly from families all across Wisconsin and America. The 'Stimulus' money is spent on what politicians think is valuable, not what you think is valuable. This alone makes it uneconomic and counterproductive. 'Stimulus' spending is even more inefficient than regular government spending. 'Stimulus' spending is based on flawed economic theory that is more concerned with justifying government power than the underlying problems that exist in an economic depression.
End combined reporting to lower taxes.
Federal Stimulus Money is a Bad Idea
When times are tough, it is especially important that taxpayers are allowed to keep more of their own money. It is similarly important that employers have the resources to keep their doors open and to grow.
Wisconsin citizens pay a significant amount of taxes to the federal government. In fact, Wisconsin sends way more money to the federal government than we get back. Wisconsin is 48th in the U.S. in terms of per capita federal dollars received — we only get $0.86 back for every $1.00 we pay. 8 In addition to this money, the federal government borrows money that our children and grandchildren right here in Wisconsin will ultimately be responsible to repay and also be responsible to pay the interest on.
The federal government then decides to send some of that money out in an ill-advised stimulus program. If Wisconsin refuses to take the federal money, we would be at a competitive disadvantage with states with which we compete in attracting and keeping jobs. Also our children would unfairly be bearing the cost of other states' excessive spending.
Mark Neumann - "Stimulus does not work. People need to keep more of their own money."
Mark Neumann's Stimulus Policy
If there is another ill advised stimulus plan from the federal government, Wisconsin will take every dollar it can get, but the Neumann Administration will craft a tax cut plan and/or Wisconsin debt reduction plan in an amount equal to the dollars received. The tax cuts shall remain in place for the period of time of the stimulus money.
This policy returns as much money to Wisconsin taxpayers as possible without increasing the debt of future generations.
Example: Doyle's Stimulus Train
The federal government has allocated to Wisconsin $810 million of 'Stimulus' money to build a passenger rail line from Milwaukee to Madison. Service on the Milwaukee-to-Madison route would start with six round trips at 79 mph in 2013, increasing to 110 mph in 2015. Another $12 million in federal cash would be used to upgrade the Milwaukee-to-Chicago line. 9
As is increasingly typical, the federal government does not have $810 million dollars. The federal government is currently running a multi-trillion dollar budget deficit. Their checkbook is overdrawn almost 2 to 1.
The train is not economically sustainable. After the train is built with stimulus dollars, the taxpayers of Wisconsin will be stuck with the costs of maintenance and operation. Our state is steeped in debt, and the Wisconsin taxpayer has a hard enough time with our current tax levels. The federal application estimates state support for operating the rail at $7.5 million in 2013, plus $8.1 million for the Milwaukee-to-Chicago leg, with the combined annual total growing from $15.6 million to $28 million by 2022. 10 The "support" money comes directly from taxpayers all across Wisconsin.Mark Neumann will stop this project in its tracks.
"If this project was economically viable, someone from the private sector would have built it already."
As a home builder, Neumann understands the concept of 'sunk costs,' and has ended construction projects when it was still much better to walk away than to have a continuing drain on resources. In other words, it is better and more responsible to take a smaller, short term loss than to sustain a much larger, long term loss.
Neumann is opposed to all unfunded liabilities when it comes to state funds and taxpayer dollars. Neumann will fight against adding more debt to our children and grandchildren's future.7T Doyle's Stimulus Train is the epitome of an unfunded future liability.
All of the data used in the following tables, graphs, and examples are projections based on historical information. Of course, the future will likely be different. We could come out of this recession strong, or we could see another dip.
Mark Neumann is committing to this proposed plan, but he expects to do even better. If it can responsibly be done, Neumann will cut spending more than this plan calls for.
|Year||Real Economic Growth
GDP Growth - Inflation11
|Inflation CPI Annual Average12|
|AVERAGE YEARLY INCREASE||1.79%||2.54%|
Everything else being equal, revenues to the government would have increased an average of 4.33% (1.79% + 2.54%) every year for the past 10 years. If Mark Neumann's plan had been implemented in 2000, spending increases would have been limited to an average of 1.54% per year (2.54% minus 1%), which is a real-dollar spending cut of 2.79% per year (4.33% revenue increase minus 1.54% spending increase).
See the shaded line in Chart 1 for a visual representation of the projected revenue increase and the associated spending cut for the next 10 years.
|Fiscal Years||Wisconsin Total Revenues||Revenues from Federal Sources||Revenues from Wisconsin Sources|
|AVERAGE YEARLY INCREASE18||4.39%||5.89%||3.94%|
Revenues to the Wisconsin government have actually grown faster than the rate of inflation plus the growth in the economy (by 0.06%).
Many economic and government factors influence the taxes and fees collected. As long as the revenues increase by more than 1% under the rate of inflation, Mark Neumann's plan will result in a surplus that can be used to fix the mistakes of past politicians, cut taxes, and create a rainy day fund.
If Mark Neumann's plan had been implemented in 2002, and everything else would have remained the same, spending would have been cut of 2.85% per year (4.39% revenue growth minus 1.54% spending growth). The total savings would have been $25.5 billion.
|Year||Mark Neumann's Spending Plan||Revenue Increase: Inflation + GDP (see Table 1)||Revenue Increase: Historical Rates (see Table 2)|
(Doyle's last budget)
|$61.85 billion||$61.85 billion||$61.85 billion|
|2012–2013 (projected)||$63.38 billion||$66.02 billion||$66.08 billion|
|2014–2015 (projected)||$65.37 billion||$71.86 billion||$72 billion|
|2016–2017 (projected)||$67.37 billion||$78.22 billion||$78.46 billion|
|2018–2019 (projected)||$69.46 billion||$85.14 billion||$85.51 billion|
|2020–2021 (projected)||$71.62 billion||$92.67 billion||$93.18 billion|
|AVERAGE YEARLY INCREASE20||1.54%||4.33%||4.39%|
Table 3 shows how much spending Mark Neumann's plan will cut if implemented in the next 5 budget cycles. Using standard projections, this plan will save approximately $57 billion for Wisconsin taxpayers over 10 years.
Wisconsin ranks 48th in federal spending per capita—which means we send more money to the federal government than we get back. Because of this, the "Revenue from Federal Sources" column in Table 2 may grow faster than in the past, creating an even larger difference between spending and revenue.
Graph 1 visually shows Table 3's data in yearly spending instead of biennial spending. The space between the lines represents the
spending cuts under Mark Neumann's plan that will allow for fixing the budget deficit, paying off Wisconsin's debt, cutting taxes,
and creating a rainy day fund.
Click the image to enlarge.
Mark Neumann Credentials on Cutting Taxes and Spending:
Mark Neumann's budget plan that he brought with him to Congress balanced the federal budget without raising taxes by capping the growth rate of spending. The following groups and coalitions endorsed or supported Mark Neumann's plan — America's Contract With Our Children:
When Mark Neumann was in Congress, he instituted a legislative program known as "Operation Clean Sweep" which was dedicated to cutting wasteful and unnecessary spending. Examples include gutting spending for sending Russian monkeys into space, moving a highway in New York to preserve condo views, ending the wasteful use of Air Force jets instead of commercial flight for military officers, and so on.
When Mark Neumann was in Congress he fought so hard to cut spending that he was kicked off the Appropriations Committee for voting against Republican spending bills.
While in Congress, Mark Neumann fought against a Republican spending bill because the political class could not explain where they would find the revenue. Republican leaders told him he had to vote for it or his political career would be over. Neumann said he didn't care about having a political career and he voted against it.
The next day, the Chairman of the Appropriations Committee Bob Livingston pulled Neumann aside and informed him that he was kicked off the Appropriations Committee. Neumann decided to write a letter, explaining his actions, and delivered it to every member of Congress. The letter explained, "if I come to Washington and vote with my conscience what I believe to be in the best interest of the future of the United States of America, and I'm getting kicked off this committee, then I'm sorry I only have one committee to get kicked off of." With this in mind, the other 25 freshmen Republicans decided to vote 'present' on every bill until Mark Neumann was restored to his committee. In the end, Neumann was put back on the Appropriations Committee and was even placed on the Budget Committee. It is the only time in the history of the United States that a first-term Congressman was put on those two committees.
New York Times21
On Sept. 29, Representative Mark W. Neumann, a freshman Republican from Wisconsin, voted to defeat the $243 billion military appropriation ... As punishment, Mr. Livingston removed Mr. Neumann — The result was a brief, but pointed revolt.
The freshmen took their complaints over the treatment of Mr. Neumann directly to the Speaker. After threatening to withhold their support of the agriculture appropriations, they forced a compromise in which their previously chastised colleague emerged with a highly prized seat on the Budget Committee.
Wisconsin State Journal22
Unlike the other GOP plans, Neumann's caps spending at close to the current level — $1.5 trillion in 1995 to $1.6 trillion in 2000.
During that time, according to Neumann's plan, projected increases in federal revenues would offset the deficit, leading to a balanced budget by 2000 — two years earlier than either the Senate or House plan.
The other difference in Neumann's plan is that, instead of reductions in specific programs, Neumann would let congressional committees decide which programs to cut. To help, the plan includes a detailed menu of suggestions.
In Washington, Rep. Mark W. Neumann (Wis.) is well known as a fire-breathing fiscal conservative, one of the leaders of the 1994 freshman class of GOP revolutionaries who make House Speaker Newt Gingrich (R-Ga.) seem wimpish when it comes to cutting government.
Wisconsin State Journal24
Neumann has taken an exceptionally conservative line on fiscal issues since he arrived in Congress last year, and he stuck to it last week even while most Republicans scrambled to the political middle.
The freshman lawmaker from Janesville was one of just 37 in the House who voted against the final budget plan last Saturday. He complained that the extra spending meant more borrowing, which he described as spending "our children's money."
And while some have suggested that the Republican leadership the past 18 months has been too conservative, Neumann said that, on the contrary, they are too committed to higher spending.
For Republican Rep. Mark W. Neumann, on the other hand, the ticket to re-election in his up-for-grabs district in southeastern Wisconsin is . . . good government.
"I can't go to pork-barrel spending knowing that it's pork-barrel spending that has led to $5 trillion in (national) debt," he said. "It's morally and ethically unacceptable."
Wisconsin State Journal26
In an emotional appeal to defy the leadership, freshman Rep. Mark Neumann, R-Wis., pleaded with Republicans not to repeat the mistakes of past Congresses in promising deficit reduction in the future while allowing deficits to rise in the present.
"I came to this city because I knew the Congresses had to be different if we were actually going to balance the budget," he said. "I ask my colleagues to have the courage of their convictions."
When the recession hit the home industry and spread to the rest of the economy, Mark Neumann had to do what everyone else in the private sector did; he lived within his means to stay above water. Mark Neumann had to cut his companies' expenditures by more than 15% in order to stay in business. This is because private companies must take in more revenue than they spend' or they go out of business.
Mark Neumann believes government should be held to this standard as well. People from the private sector understand what it takes to earn a dollar, and they understand that the most efficient use of money is done by the individual.
1 Bob Lang, 2009-11 and 2011-13 General Fund Budget, Legislative Fiscal Bureau at 5, http://www.legis.state.wi.us/lfb/Misc/2010_07_09_WI%20Leg.pdf (table 5).
2 Thomas Hefty & John Torinus Jr., Getting Ahead: Eight Steps to Reinvigorate the Ravaged Wisconsin Economy After a Decade of Decline, 19 WISCONSIN INTEREST 1, March 2010.
5 Scott Graff, Wisconsin Legislature Briefing Book 2009-10 at 2, available at http://www.legis.state.wi.us/lc/publications/briefingbook/08statebudget.pdf(". . . Governor to deliver the biennial budget message to the Legislature on or before the last Tuesday in January of the odd-numbered year . . .").
6Bob Lang, 2009-11 and 2011-13 General Fund Budget, Legislative Fiscal Bureau at 5, http://www.legis.state.wi.us/lfb/Misc/2010_07_09_WI%20Leg.pdf (table 5).
7 Thomas Hefty & John Torinus Jr., Getting Ahead: Eight Steps to Reinvigorate the Ravaged Wisconsin Economy After a Decade of Decline, 19 WISCONSIN INTEREST 1, March, 2010.
9 Larry Standler, Walker, Neumann Wary of High-Speed Rail's Operating Costs, MILWAUKEE JOURNAL SENTINEL , Feb. 28, 2010, available at http://www.jsonline.com/news/wisconsin/85788762.html.
11 Table 1.1.5: Gross Domestic Product, U.S. Department of Commerce: Bureau of Economic Analysis, http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&ViewSeries=NO&FromView=YES&Freq=Year&FirstYear=2000&LastYear=2010. Real Economic Growth is the rate GDP grows minus the rate of Inflation.
12 Consumer Price Index: All items, U.S. Department of Labor: Bureau of Labor Statistics, ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.
13 Statistics: State and Local Finance, Wisconsin Bluebook 2001-2002 at 815.
14 Statistics: State and Local Finance, Wisconsin Bluebook 2003-2004 at 818.
15 Statistics: State and Local Finance, Wisconsin Bluebook 2005-2006 at 829.
16 Statistics: State and Local Finance, Wisconsin Bluebook 2007-2008 at 827.
17 Statistics: State and Local Finance, Wisconsin Bluebook 2009-2010 at 833.
18 To get the total percentage increase, take the 2008-2009 number, subtract the 2000-2001 number, divide by the 2000-2001 number. To get the average yearly increase, divide the total percentage increase by 8, since there are 8 years between 2002 and 2009 (inclusive).
19 2009 Act 28 at 17, enacted June 29, 2009 (2009-2010 appropriations total 30,882,928,300 and 2010-2011 appropriations total 30,968,547,000).
19 The chart represents biennial budgets. The increase from one biennial budget to the next will be more than the average yearly increase, since each biennial budget contains two yearly increases.
20 Jerry Gray, Freshman Challenge GOP Elders, NY TIMES, Oct. 21, 1995, available at http://www.nytimes.com/1995/10/21/us/freshman-challenge-gop-elders.html.
21 Karen J. Cohen, GOP Leaders Tell Neumann His Budget Plan Will Get Vote: Wisconsin Congressman Overjoyed, WISCONSIN STATE JOURNAL, May 12, 1995.
22 Eric Pianin, House Budget-Slasher Trims His Rhetoric in Senate Bid, WASHINGTON POST, Sept. 2, 1998, available at http://www.washingtonpost.com/wp-srv/politics/campaigns/keyraces98/stories/wi090298.htm.
23 Stephen J. Seigel, Neumann Keeps to Fiscally Conservative Line: Janesville Republican Bucks GOP Trend, WISCONSIN STATE JOURNAL, Oct. 6, 1996.
24 Capitol Times, Neumann's Hands not in Cookie Jar, CONGRESSIONAL QUARTERLY, Aug. 7, 1996.
35 David Skidmore, House GOP Rebels Join in Passing Budget Plan, Wisconsin State Journal, June 13, 1996.
Mark wants to hear from you!
Message Mark directly:
Thank you. Your message
has been submitted.
With your account, you gain insider access to the campaign. You can also create your own blog, plan and attend events, invite
your friends, get customized candidate
information, and much more!
Join the team today.
Fill out your information and create a password.
By creating your account, you accept the terms and conditions specified in the User Agreement.
You can also connect using Facebook Connect:
Connecting to Facebook...
Send your Tweet directly from www.markforgov.com!
Loading QR Code for this page below:Close