To Fund Their Radical Agenda, Are Wisconsin Democrats Eyeing State Retirement System?

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The incoming Democrat trifecta in Wisconsin wants to spend a lot of money. Out of the gate, their plan to repeal Act 10 and right-to-work will cost the state at least $2 billion. Add to that “free” universal childcare, expanded Medicaid (maybe), and other initiatives and the bill gets very expensive, very quickly. While the state has roughly $3 billion in surplus and another $2.5 billion in its rainy day fund, that will not be enough to cover massive spending for long.

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There are rumors — and they have not been verified yet — that Democrats are discussing taking money out of the Wisconsin Retirement System (WRS) to pay for some of that spending binge. The WRS pays the pensions of public employees in Wisconsin.

It is one of, if not the, best-funded public pension systems in the country. As of September 30, it had nearly $160 billion.

According to Dan Lennington with the Wisconsin Institute for Law and Liberty (WILL), this is unconstitutional and prohibited under Art 1, Section 13.

But with a liberal majority on the state’s Supreme Court, could that ruling be revisited?

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There’s also the possibility they take the money, and let it play out in court for another administration to deal with down the road. Republican Gov. Tommy Thompson took money out and was forced to repay it with interest nine years later.

It would be a bold, risky move, since public-sector employees are big Democrat voters.

But you can see where the Democrats might make this calculation: take money from the WRS so they don’t have to raise taxes, then they can say they “delivered” on affordability without raising taxes.

The alternative is massive tax increases on every working Wisconsinite.

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Once again, it’s just a rumor from some state employees. 

Nothing has been verified yet, but given how much Democrats want to spend in Wisconsin, that money has to come from somewhere. This would be unconstitutional, but as Gov. Thompson showed, you can take out a nine-year loan and leave a future administration to pay it back after it goes through a years-long legal process.

We’ll see what happens.

Editor’s Note: The Democrat Party has been infected by socialism, and it’s spreading FAST. Democrats are claiming there’s nothing to worry about, but we know the truth.

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