Depending on which economist you believe, we are either already in a recession or will be soon. The most recent data continue to be disturbing. Economic growth came in at a meager 0.6 percent for the last quarter of 2007. Job growth has fallen - with 17,000 jobs actually lost in January nationally, the first month with a job loss in over four years. The mortgage collapse (see item three below) continues unabated, with housing related-jobs being lost and scores of foreclosed homes adding to the glut of homes already on the market.

In response to the recession, either already present or not, the President and House leadership recently hammered out a $146 billion compromise economic stimulus package that included the following:
- rebate checks to eligible taxpayers of $600, with an additional $300 per child     - over 117 million families would receive the rebates
- individual taxpayers earning less than $75,000 would be eligible
- businesses would immediately be able to write off 50 percent of the purchase cost of new plants and other equipment.
- small businesses would be permitted to write off other equipment purchases

Absent from the package, and of interest to a number of Senators now taking up the plan for debate, are other methods proven to provide both a greater bang for the buck (greater economic stimulus per dollar invested) as well as providing more relief to the low-income individuals who need it the most during a recession. These include extending unemployment benefits and beefing up food stamps. The Senate is reportedly going to vote on at least five alternative packages this week. The economic downturn will result in sharply reduced revenue growth for Wisconsin. The Legislative Fiscal Bureau estimates a shortfall during the current budget biennium of between $300 and $400 million. A number of legislators and the Governor have already stated that taxes will not be raised to balance the budget.