This report by the American Legislative Exchange Council on the relative economic competitiveness of all 50 states is a few years old but nonetheless very informative given the measures that many states, such as ours, may impose to address their fiscal situations.  If you don’t have time to read the full report, I’d recommend at least comparing Wisconsin with similar sized states that are more or less competitive.  It is also worth noting the striking (albeit not surprising) disparity in rankings between the two most populous states in the union, California and Texas.  Of course, it is not surprising given their respective governors’ approaches on handling state budget deficits and “free money” from the federal government.  Governor Schwarzenegger is all too happy to take the “stimuli” while Gov. Perry and a few other GOP governors are being a little more discerning.

Locally, Scott Walker has caused quite a stir with his suggestion of a sales tax holiday.  Criticism notwithstanding, it is a refreshing alternative to the standard approach our big spenders in state government are renown for.  Just yesterday, JSOnline reported how the state may spend the $12.5 million in fees collected thus far to assist in complying with the federal Real ID law.  Ignoring the merits of the law or whether it will change in the future, the following section from the article is a perfect example of the “tax first, figure out how to spend it later” mentality that has resulted in massive spending increases that the federal and many state governments have experienced this decade.

The state will continue to improve its licensing system, but it’s too soon to tell how the state should use the $10 increase in license fees it began charging last year, Doyle said.

“Depending on what the federal government does, we may want to use part of that fee to finish our modernization, but I think we really don’t know where the federal government is going to go on Real ID,” he said.

The Legislature’s Joint Finance Committee plans to begin amending Doyle’s budget in April. Democrats run the committee and Legislature.

Decision debated

State Sen. Mark Miller (D-Monona), the committee’s co-chairman, said Doyle made the right call because of the federal law’s uncertain future and the state’s tight fiscal situation.

“We need every nickel we can find,” he said.

No doubt.  How about looking under the couch cushions instead?