GDP report- Is Obama Recovery running out of steam?

A few thoughts from the surprisingly-low GDP figure of 1.2% growth for the 2nd quarter of 2016.

This graph from Econbrowser gives a good breakdown of how we ended up at that figure. As you'll see, consumer spending actually was quite strong between March and June, adding over 2.8% to GDP last quarter. But inventories shrank by a lot (the pink line), and the rest of the economy also stagnated.



What's also concerning with this release is that after 6 straight quarters of 2% growth or more, we now have had 3 consecutive quarters of lower growth, as Q4 2015 was 0.9% and Q1 2016 was 0.8%. This cuts the year-over-year growth rate to just over 1.2%, which is the lowest in 3 years, and is less than half of where we were at the start of 2015.



Also interesting to note is that government spending declined for the first time since the end of 2014. The government sector had actually boosted GDP in the previous 5 quarters after having a significant decline between 2010 and 2014, and if the economy is truly slowing, you wonder how that'll be reflected with the availability and use of government expenses.



But in all, the economy is still growing, albeit at a slower pace (as you will see by the growth rate leveling off at the end). This means the Obama Recovery is still continuing in the Summer of 2016, now at 7 years and counting.



But 7 years is quite a while to go without recessions, and with U.S. unemployment now below 5%, unemployment claims at the lowest levels since the 1970s, and a strong dollar holding down exports, I have to wonder how long these good times are going to last. It almost seems like we either are heading toward a late-game Bubble in housing and/or stocks (the frequent Rocket Mortgage and "pre-approved" ads should give chills to anyone who remembers what happened in the 2000s), or that the slowdown might turn into something that starts to lead to job losses in areas other than oil drilling and manufacturing.

Don't get me wrong, we're a helluva lot better than we were when Obama took office in January 2009, and that should never be forgotten. But I do think it is appropriate to wonder where things go from here.

Walker highway funding fiasco growing more insane

It's bad enough that Scott Walker is living in a Fantasy World where he refuses to raise taxes or fees to pay for the state's huge needs for road repairs, but now we find out his delusion is even worse than we knew. As Jason Stein and Patrick Marley accurately pointed out in a big Sunday article, Walker wants even more building, while claiming to hold the line on spending and taxes. In a classic example of “watch what he does and not what he says,” Walker was telling reporters up North one thing while doing another behind the scenes.

This month, Walker told a Northwoods television station the state is going to focus more on outstate roads and "not going to do, in the foreseeable future, any big projects, particularly in the Milwaukee area." He's made similar comments elsewhere.

But in a May 13 letter, the GOP governor told the Federal Highway Administration that his administration wants to kick off an $850 million project to widen an east-west stretch of I-94 between the Marquette and Zoo interchanges from six lanes to eight.

"I support the advancement of this project and believe there is a reasonable expectation our 2017-2019 budget will be passed with the appropriate level of highway funding needed to advance the state's highest priority needs," Walker wrote to Michael Davies, an administrator at the federal agency.

As with most highway projects, it would be funded jointly by the state and federal governments, which both heavily rely on gas taxes to pay for roads.

The state already has years of work ahead to finish two other megaprojects: the Zoo Interchange connecting I-94 eastbound to I-41 northbound; and the north-south section of I-94 between Milwaukee's south side and the Illinois border.

So explain to me how there won’t be any new funds for new Megaprojects in Southeastern Wisconsin (and remember that the I-94 and Zoo Interchange projects will be continuing through that 2017-19 budget), and yet you're planning on putting a whole new lane on I-94 in the middle of the state's largest city?

More remarkable is that Walker was begging the Feds for money to pay for that I-94 project, and then proceeded to rant at the GOP convention about how “liberal Washington” is overbearing and that the states should be relied on more for decisions and funding for projects. The I-94 road work is also not the only time the Walker Administration has been asking for a DC handout on high interstate projects in Wisconsin roads this year, as we found out last month that WisDOT is taking advantage of $40 million in federal money to help speed along expansion work on I-90 near Janesville.

Even worse is that the I-94 expansion in Milwaukee may not even be needed. Read this report that aired on Channel 12 from 2014, where residents near Miller Park and then-Milwaukee Common Council president Michael Murphy opposed the I-94 expansion, with Murphy saying it would be wiser for the state to use funds to fix local roads than widen the interstate.

A similar theme was sounded last year by a group of “smart-growth” activists known as the “Coalition for More Responsible Transportation” (CMRT), who said that traffic studies show the I-94 expansion is unnecessary,. In addition, they noted that a Transportation Fund already drowning in debt from prior projects could use some relief and flexibility to pay for alternative forms of transportation.

CMRT believes that the overbuilding of highways is not only drastic and expensive, but unnecessary. WisDOT justifies the proposal to add more lanes to I-94 by projecting a 23 percent increase in traffic near the Miller Park by 2040. But an analysis by 1000 Friends of Wisconsin conducted last October shows traffic has actually decreased by 8 percent along that stretch of highway.

Because there is no need to widen I-94, the development will divert taxpayer money from projects that would have more economic impact. A report by WISPIRG, Sierra Club and 1000 Friends of Wisconsin found that by scaling back highway expansion projects, the state could save taxpayers nearly $500 million in the coming biennium. The savings could then reduce the state’s reliance on bonding and spending money on interest payments, and instead be spent on local priorities like road repair, transit and bike/pedestrian infrastructure. “Wisconsin needs a responsible transportation budget,” said Elizabeth Ward, Sierra Club John Muir Chapter. “We should invest our limited transportation funds in the most critical priorities while looking for savings wherever possible. And we have to take a particularly hard look at multibillion-dollar investments in major highway expansion projects, especially since Wisconsinites are driving less.”

CMRT also believes that the development of I-94 will have a negative impact on businesses around the Milwaukee area. More funding for highways means less funding for fixing local roads and less accessibility for public transit, which can impede people from reaching their place of employment, school, and medical care. As veteran Capitol reporter Matt Pommer has written, “fifteen years ago, 40 percent of the state transportation fund was returned to municipal and county governments. Now, less than one-third of that fund returns to local governments.” That has had a negative impact on all local roads, but particularly in metro Milwaukee. He notes a 2013 study which found “more than half of the roads in the Milwaukee area were in poor condition. It suggested that road conditions cost Milwaukee-area drivers an average of about $700 per year in vehicle repairs.”

And as someone that has traveled that stretch of I-94 numerous times in my life, I concur with that analysis. The section Walker is proposing to expand is the one part of east-west I-94 in the Milwaukee metro area that has the least amount of rush-hour issues, because many drivers heading from Waukesha County to the airport or points south use I-894, and I-43/I-94 takes up another part of the traffic that goes north-south. Plus, given that the area of the expansion has been built up with housing and other structures for decades (along with the cemetery just west of Miller Park), the roadway is already tight and there is little room to add on, making an expansion project even more of a problem.

Let’s also note another bit of irony, where Walker is asking for hundreds of millions of dollars in federal aid to expand an interstate near Milwaukee, and is offering to have state taxpayers put up a sizable amount of the rest of the cost. But that same Governor turned down over $800 million in funds from “liberal Washington” to allow people to use high-speed rail between Madison, Milwaukee, an Chicago, a project that would not have required one dime of state money, and would have reduced the need for the expanded capacity on I-94 that Walker now says we need.

And oh yeah, Scotty also still has no explanation how he’s going to pay for this extra highway project, as the state battles with a $939 million shortfall for roads BEFORE this I-94 expansion is accounted for. The question of “HOW ARE YOU GOING TO DO THIS/PAY FOPR THIS” is quite reminiscent of how I felt watching the non-racist parts of Drumpf’s RNC speech. And you wonder why I say today’s GOP is unfit for office, and shouldn’t be trusted to run a hot dog stand, let alone a state or country?

Luke in Limbo

Went to the Brewers game last night with a large group. Good times, great weather, and a nice win for the Crew. But obviously the bigger story is off the field, as the team agreed to trade All-Star catcher Jonathan Lucroy to the Cleveland Indians, only to see Lucroy veto the trade. Here are my thoughts on it.

1. Luke's decision to turn down the trade seems to be based on playing time and money. He's got a cheap (by MLB standards) $5.25 million contract for 2017, but then gets a chance to cash in as a free agent after that year. The Indians said that they weren't planning to have Lucroy catch full-time next year (when their younger, high-prospect catcher comes back from injury), and Luke felt his stats and playing time might suffer, which would hurt his desirability on the free agent market. When Lucroy couldn't get the Indians to then void the last year of his contract and make him a free agent after THIS year, he told them to fuck off. I can't blame him for thinking about what this trade would have done to his future earning ability, although it does blow up Luke's complaints this off-season about being OK with being traded out of Milwaukee because he wanted to play for a contender (the Indians are 4 1/2 games in first as I type this).

2. This is you build certain things into contracts when you negotiate them. Luke gave the Brewers a significant discount when he signed a 5-year contract extension in 2012, but he got the freedom to turn down trades to places he didn't want to go to (and/or have his family go to). He's got that leverage, even if you disagree with his choice to push it there. It seems like the Brewers get this (General Manager David Stearns seemed pretty cool with it, and indicated he would move on and see what happens from here), and it's probably less unusual than we think- we just don't often see it play out in public like this.

3. The Brewers don't need to take a subpar offer for Lucroy- keep him around if someone doesn't give you a huge deal. All-Star catchers don't exactly grow on trees, and while the Brewers aren't contenders this year, they're doing better than many of us thought. Why not keep Luke as a piece to build around for that future, or a piece to trade in the off-season when there should be a better market for him, (given that more teams will know their needs and the Brewers won't be pressured by the trade deadline)? Ryan Braun seems unlikely to be traded in the next 2 days, given that Braun is both hurt and is set to be paid big money for the next 3 years, so I think the off-season is the best time to re-evaluate where the team is, and to see what other teams might be willing to give.

4. The Brewers are in an entertainment industry, and I don't know how they could sell the last 2 months of the season to their fans if Lucroy (aka "The Face of the Franchise") and Braun were given away with no immediate help coming. Yes, they're playing good ball right now (6-3 in this current homestand), but I'd still anticipate a whole lot of small crowds the rest of the year if there were no major stars to come to see from the home team. I think Brewers fans have been remarkably patient and understanding that the Crew is in a long-term rebuilding project after last year's disaster, but you're going to have to start contending in the next 2-3 years, or else the fans will give up and stop coming.

I find the whole last 12-18 hours in Brewer-land interesting more than anything else. The team is holding Luke out of the lineup again today (so they don't get caught in a strategic disadvantage if he's traded during the game), and we'll see if Luke gets sent to the Dodgers or Mets in the next 24 hours. But if it doesn't happen, I have full confidence Luke will continue to be a pro and continue to play hard for the Crew.

Very quietly, state shifting another $1 billion in debt

Because I’m a nerd, I occasionally look at the Wisconsin Department of Administration’s Capital Finance page, to see if any new debt is being offered by the state, and also to see if there are any updated budget items I can latch onto. If you click on that page, now you’ll see these three items.

$598 million of General Fund Refunding Bonds
$317 million of General Obligation Refunding
$93.7 million in GO Bonds (new money)

That’s over $1 billion in debt that’s being put out by the State of Wisconsin, so I wanted to see how this was all put together, and if it was a (further) sign of bad budget times to come. I’m no expert in all of the mechanism of these bonds, but in looking through the debt offering document for the $598 million in "refunding” (basically refinancing), it looks like this influx of money goes to pay off old debt that was first sent out in 2003, 2008, and 2009 to pay the bills in those deficit-addled years. This is done to keep from waiting until those bonds mature in later years to pay out the $1,000 face value, and just like with a car or a house, refinancing in itself isn’t necessarily a bad idea (especially given how low post-Brexit interest rates have been), and it can take a lot of near-term debt payments off of the books.

And if I’m reading the preliminary bond statement document correctly, $417 million of these bonds would come due in 2018, and would hit the next budget. This refunding would seem to be a nice way to avoid some budget pressures looming for the next session. The interesting question becomes what interest rate the bonds are offered at. A look at the recently-closed sale of $93 million offered interest rates ranging from 0.80% to 5.0%, and if this new refunding pulls such a high rate that investors are willing to pay more than face value (in exchange for taking in higher interest rates in future years), the state benefits because it doesn’t need to borrow as much in the future, or it can pay off more outstanding bonds if it’s a refunding. This will likely improve the state’s budgetary bottom line for this year and the near future.

But the problem with this refunding is that it also pushes interest costs into years that we weren’t slated to pay them, given that these bonds are paid off as late as 2037, and if 4% and 5% interest costs are above what regular interest rates would be, we would pay more than we need to. It would also tie the hands of future budgets, since we’re not only paying higher interest costs, but the face value of that debt matures at some later point as well. This might be a smart gamble to make if you think inflation and/or interests costs will eat away at those concerns over the next 10-20 years, but it also makes it intriguing to see what happens to our debt service projections, and see if that crowds out spending on more pressing issues. (if you want to take a cynical view of things, the ALEC crew is fond of schemes that tie government’s hands from spending to solve problems- easier to privatize that way).

Also of interest are the statements on another $317 million of refinancing that was bid on last week, as it gives an update on the state’s overall indebtedness. You’ll see that this number is back on the rise after leveling off between 2012-2014, with last year having the largest increase in debt in 4 years ($267 million).

GO Debt, Wisconsin
July 1, 2008 $5.235 billion
July 1, 2009 $5.362 billion
July 1, 2010 $6.015 billion
July 1, 2011 $6.730 billion
July 1, 2012 $7.279 billion
July 1, 2013 $7.492 billion
July 1, 2014 $7.261 billion
July 1, 2015 $7.449 billion
July 1, 2016 $7.716 billion

This figure includes the $101 million “scoop and toss” maneuver that Gov Walker’s office pulled in May, which has added to the debt payments due in this Fiscal Year as well as the 7 years afterwards. It makes me wonder if perhaps some of this refunding is to even out the higher payments that resulted from that move and a similar “scoop and toss” in 2015.

We probably won’t get much of an idea about where the state stands on its future indebtedness until we see budget requests come back in September, and then we get to see the final FY2016 picture with the Annual Fiscal Report in October. But I find it intriguing that the state continues to try to deal away large amounts of current-year debt in exchange for the hope that it’ll be easier to take care of things in later years. Either that, or the Walker Administration is trying to pass the buck and dump the problem onto the next unlucky governor who’ll have to clean up the mess. I suppose we’ll find out in the near future which answer it is.

A few Dem convention thoughts

The best speeches on the final night were Rev. Barber and Khizr Kahn back-to-back. Barber showed that moral decency and demanding equality of rights and opportunity should be American values, but that these days, it is only progressives that follow them. Rev. Barber was further vindicated yesterday when race-based voting restrictions in his home state of North Carolina were struck down, and followed shortly by similar Jim Crow-like suppression getting the boot in Wisconsin.

And when Mr. Khan did this and said “Mr. Trump, you have sacrificed nothing,”…GAME OVER.



Those guys represented and spoke to the America I believe in, and know that we can become, if we have the guts to choose it.

Hillary’s speech was really good, especially once she got out of the wonky weeds and drew the contrast between GOP hate and Dem inclusion. And also drew the contrast between her steadiness and intelligence, and Drumpf’s weakness, stupidity and horrible temperament. Drumpf and his pathetic followers are now on an island, and look like the diminished, shriveldicked fools they are.

Sure, this thing’s not over- catastrophes could hit that drive up the fear prospect which makes people vote foolishly (Drumpf’s only chance), but the Dems couldn’t have run things better and set themselves up better, given how things looked at the start of this week. They have now taken command of military competence and done so with an inclusionary message of respect and hope that fits the 21st Century- what Reagan Republicans claimed to be 30 years ago (even if they never really lived up to it).

My biggest complaint- WHERE WAS THE MESSAGE TO VOTE DOWNTICKET? The biggest problem with the DNC and the Party in general for the 2010s is too much concentration on DC and the Presidency, and not enough attention to more local races. They should have hammered Congressional GOPs for their obstruction, and ripped GOP governors for their failed policies and hateful fundie social laws (did you hear about North Carolina’s “bathroom bill” or the anti-public education policies of ALEC? I didn’t). Where’s the message of “Give us a Democratic Congress, and put Democrats in charge at the state level, and you will see this country move ahead.” I didn’t hear enough of that.

But it still was a great event if you support Dems or if you’re frightened by the prospect of a Drumpf Administration ending this country’s democracy, and it feels like things are more in control and settled down in this country than they were last week. But being complacent is nowhere near good enough- we need Dems to DOMINATE in the elections and slam Republicans into dust, if we truly want to take a big leap forward after 2016. And that goes far beyond merely putting Hillary Clinton in the White House.

Pence rally, journalist ejection show WisGOPs staying in Bubble

For a bunch of people who use the word “freedom” a lot, today’s Republicans sure don’t like the 1st amendment when it comes to reporting on reality. Take a look at this now-notorious story from here in Wisconsin last night, where a Washington Post reporter was banned from Mike Pence’s first headlining rally as Donald Trump’s Vice-President, even as a member of the general public.

Post reporter Jose A. DelReal went to cover Pence's rally at the Waukesha County Exposition Center, but he was turned away by volunteers at a press check-in table before entering.

DelReal then tried to go through the general-admission line, as reporters who were banned from Trump's events last month have generally been able to do in the past, the Post reported. Again, he was stopped there by a private security guard who told him he couldn't enter the building with his laptop and cellphone.

When DelReal asked whether others attending the rally could enter with their cellphones, he said the official replied, "Not if they work for The Washington Post."

DelReal placed his computer and phone in his car, returned to the line and was detained again by security personnel, the Post reported. This time the the security personnel summoned two county sheriff's deputies who patted down DelReal's legs and torso, seeking his phone, the reporter said.

But why would we be surprised by this? Scott Walker was the main greeter for Pence at this event, and we know how allergic to the public Gov “Unintimidated” is, given how he pre-selects the audiences at his taxpayer-funded “listening sessions.”

By the way, WisPolitics has a good rundown of the other top WisGOP officials who showed up at this (allegedly poorly-attended) Pence event, and why they supported the Indiana governor (because he has passed laws harming public schools and women’s reproductive rights). The image of Scott Fitzgerald blubbering "Trump-Pence" is really disturbing.

Wispolitics also has some jaw-dropping quotes from the handful of dopes that did go to this train wreck of an event.

Debbie Gorichanaz said she remains a big Scott Walker fan and also likes Paul Ryan and has noticed Ryan "speaks very highly of Pence." She said she is most put off by Clinton's "email scandals."

Asked if she was troubled by Walker's own email allegations, she replied, "No, because that was not a real email scandal."…

Brad Wilkins, of Waukesha, says he's been a Trump supporter for 20, 30 years.

"We need somebody who can manage money," he said.

Yes, the millionaire’s son with multiple bankruptcies is absolutely a person who knows how to manage money (about as well as Scott (27% credit card) Walker, come to think of it). And apparently Scott Walker’s secret campaign server in Milwaukee County (and Madison?) that resulted in actual criminal convictions is somehow better than Hillary Clinton’s having a separate server, and zero criminal convictions. This is how things roll in the 262. Instead of listening to others and admitting the failures of both Trumpism and Walkerism, these guys choose to try to make their Bubbles even bigger- shutting out other voices and making up different realities to justify the idiocy, scumminess and corruption of their “team.”

I’d almost feel sorry for what will happen to these dimwits when that Bubble breaks and they realize they’ve followed idiots, scumbags and losers for years. But given the damage that has been inflicted as a result of the voting habits of these suckers? Fuck em, I hope they get crushed. Not just in elections over the next 2 years, but also spiritually and in their everyday lives. Apparently that’s the only way these gutless Bubble Boys will ever get themselves on the road to recovery, and the only way this state and this country can get back to having politics that function as a force for public good.

Nygren gets the numbers, shows Transportation $1 billion in the hole

The last couple of days have offered more proof that when it comes to road funding, Governor Walker and reality are not mixing well. And now we have some numbers to go along with that, courtesy of Joint Finance Co-Chair John Nygren (R-Marinette). Nygren asked the Legislative Fiscal Bureau to compare the costs of the state’s road projects with the amount of money that would come in for them (before borrowing), and said that gap in funding confirms that Wisconsin has to look at raising fees and/or the gas tax to pay for roads.

“In the 2015-17 State Budget, several transportation projects were delayed. Instead of updating and building upon our infrastructure, efforts were focused on maintaining existing roadways. Unfortunately, to cover these maintenance costs, Governor Walker advocated to use an unsustainably high amount of transportation bonding.

“According to LFB, we will need to recover over $939 million just to maintain what was approved last budget. That figure doesn’t include debt service payments. Our state’s principal repayment currently stands at $4.3 billion in bonding; a whopping $3.5 billion of this repayment is owed by the transportation fund and the rest is set to come from the general fund. Moreover, some of the transportation bonds that were approved last budget have yet to be issued, which means Wisconsin’s debt service will only continue to rise.

“We have kicked the can down the road long enough. In the upcoming budget, we need to bring in new revenue that will help buy down our transportation debt and structure a sustainable plan for Wisconsin’s infrastructure. It’s imperative to look for reform and program savings as we continue discussing revenue options for the benefit of our state. Moving forward, I implore the governor to consider additional avenues of funding as well.

There’s a small bit of good budget news buried at the bottom of the memo, which says “an estimated $26.8 million reduction in bonding will be required. DOT may submit a s. 13.10 request in 2016-17 to replace the bonding reduction with transportation fund revenue.” This is part of a budget provision that allowed for the $350 million in additional borrowing that was approved in November by the Joint Finance Committee, which said that Transportation Fund revenues came in higher than budgeted, then that borrowing would be reduced. .

c) For fiscal year 2016-17, the modification amount is equal to the amount by which total state revenues for the transportation fund as shown in the annual fiscal report for fiscal year 2015-16 exceed $1,661,562,400, except that the modification amount may not exceed $150,000,000. Notwithstanding paragraph (a), the total amount of debt authorization under section 20.866 (2) (uuu) of the statutes that the joint committee on finance may approve in fiscal year 2016-17 is reduced by the modification amount.

So it goes from $850 million to a little more than $823 million over the course of the 2-year budget. Still not great, but worthy to know.

Interestingly, Nygren is backing down a bit on those statements today, saying he was merely trying to "lead a discussion." But the fact that he felt a need to say anything to begin with illustrates how bad the situation is. Did this news of Wisconsin being nearly $1 billion short of paying for its needs move Gov Walker off of the “no-tax, no-fee” pledge he has made to out-of-state oligarchs ? Of course not.

"Raising taxes and fees is not the answer," Walker said in a statement Wednesday issued in response to Nygren's comments. "Under our administration, we will keep it a priority to live within the means of the hardworking people of Wisconsin. That is a commitment I will honor. Leadership will require us to identify cost savings and prioritize our needs, as I have directed my Department of Transportation secretary to do, especially when it comes to safety and maintenance. I am confident we can do better than placing new taxes on Wisconsin citizens."

In a letter to DOT Secretary Mark Gottlieb last month, Walker outlined his opposition to increasing gas taxes or registration fees and encouraged Gottlieb to look for design changes to construction projects that could be made to reduce spending.

Proposed spending on mega-projects in southeastern Wisconsin should be minimized, Walker wrote, with an emphasis on needs rather than wants. Large, necessary projects should have their plans reviewed to look for possible cost savings while maintaining safety, he also wrote.

I’m sure slowing work on the Zoo Interchange project (making that mess last even more years) and keeping I-94 under construction between Milwaukee and Kenosha is going to go over REAL well, and won’t make us fall further behind in our competitiveness. What a maroon.

What’s scarier is that if you dig into the LFB memo that Nygren references, you’ll see that only $15 million is slated for Southeast Wisconsin “megaprojects”, leaving that area nearly $385 million short compared to what is being spent in the current 2-year budget. And we still have an additional shortfall of over $550 million in the rest of the state, even if we keep using current revenues at the same amounts as we are now.

The second part of Nygren’s LFB request is also intriguing, as it looks at the 4 states that border Wisconsin, and notes that motorists in those states pay a larger amount of combined taxes and fees than Cheeseheads do – often much larger. First of all, it compares the gas tax per gallon that motorists pay, and Wisconsin is pretty much in line with our neighbors these days, now that states like Michigan and Iowa added to their gas tax in recent years. This analysis assumed a gas price of $2.38 a gallon, to account for the fact that Illinois and Michigan pay sales tax on their gas (so their total taxes go up or down based on the price).

Total gas tax per gallon, 2016
Ill. $0.338
Mich $0.330
Wis. $0.329
Iowa $0.320
Minn $0.286

From there, the analysis decided to compare how much a motorist pays in fees and taxes to operate a vehicle for a year in all these states. The LFB used a couple of different car prices, to account for states that charge registration fees based on a vehicle’s value.

$25,000 car, driving 12,000 miles a year, 22.5 MPG
Wis. $250
Ill. $267
Mich $273
Minn $326
Iowa $424

$35,000 car, driving 16,000 miles a year, 15 MPG
Wis. $426
Ill. $432
Mich $486
Minn $541
Iowa $684

Also note that Illinois’ figures do not seem to include tolls, which would raise their figure above that $432, and make Wisconsin’s cheapness in the “cost to drive” even more obvious.

The only time these gaps narrow even somewhat is if you’re dealing with cheap cars that get lousy gas mileage, since that lowers the registration fees in some of these states. I figured that would mean that higher registration fees would be a logical solution, but interestingly Nygren said to the Capital Times that he was more in favor of raising the gas tax above over other policy options.

Nygren said he doesn't have a specific level of bonding in mind with which he would be comfortable, and added that he doesn't want to advocate specific policy proposals just yet. Rather, he said, he wants to start the discussion well in advance of the budget process….

"I'm hoping it won’t just be the governor saying 'yea' or 'nay,' but the people of Wisconsin stepping up and saying, 'we need to do something to fix our infrastructure going forward,'" Nygren said.

Personally, Nygren said, he favors a gas tax hike over a registration fee increase, because the cost would be shouldered by everyone who uses Wisconsin's roads. Similarly, he would be open to a toll road system; however, implementing a toll system in Wisconsin would require congressional approval.

I guess I could see that, in the sense that it makes the FIBs and other tourists pay some of the costs. If Nygren wants to go a step further, he could make that gas tax variable, where it is higher during the high-tourist months from May through September, and lower it for the other months, which would limit the burdens on Wisconsin residents even more.

Regardless of what is done, I agree with Nygren that SOMETHING has to be decided. Scott Walker’s inability to face the facts and cause a double-whammy of more borrowing and bigger repair backlogs is clearly something that is bothering his fellow WisGOPs in the State Legislature. And make no doubt, Walkerism (and Trumpism at the presidential level) is clearly a threat to the 71 GOPs who are up for re-election in 2016- a number that does not include Scott Walker. This is why you’re seeing top GOP legislators at the Capitol like John Nygren and Speaker Robbin’ Vos go out of their way to oppose Scotty on this issue, because they’re the ones that’ll deal with the consequences of doing nothing other than striking poses for Grover Norquist.

After taking a trip up North this last week, there’s a lot of work to be done, without a lot of sources for those communities to pay for it. The state will HAVE to help (barring a major bailout from the “liberal Washington” Scotty claims to dislike), and the solution that arises over the next 12 months will likely define how things shape up in Wisconsin as our critical campaign year of 2018 looms.