What's happening in Wisconsin is not complicated. At the beginning of this year, the state was on course to end 2011 with a budget surplus of $120 million dollars. As Ezra Klein explained, newly elected GOP Governor Scott Walker then " signed two business tax breaks and a conservative health-care policy experiment that lowers overall tax revenues (among other things). The new legislation was not offset, and it turned a surplus into a deficit."
Walker then used the deficit he created as a premise to assault his state's public employees using a law cooked up by a right-wing advocacy group called the American Legislative Exchange Council (ALEC). ALEC likes to fly beneath the radar, but I described the organization in a 2005 article as "the connective tissue that links state legislators with right-wing think tanks, leading anti-tax activists and corporate money."
This has nothing to do with the state's fiscal picture, and everything to do with destroying the last bastion of unionism in the American economy: public employees.