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Deficit double original guess
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Also by Beth Mueller:
- Dealer makes political statement (April 24, 2008)
- Doyle to talk policy, business in U.K. trip (April 22, 2008)
- Stay married to fix state budget gap, group says (April 18, 2008)
- New leadership for health department (April 10, 2008)
- Poll shows push for smoking ban (April 9, 2008)
Related Stories:
- State tax collections down (September 5, 2002)
- State faces $1.6 billion shortfall (November 22, 2004)
- Wisconsin braces for deficit (November 19, 2004)
- State budget estimates to fall short (November 21, 2002)
- Doyle blasts UW budget (November 19, 2004)
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by Beth Mueller
Thursday, February 14, 2008
The state of Wisconsin will come up short for the 2007-09 biennial budget by $652.3 million, about twice what was projected in January, according to new numbers released Wednesday.
Gov. Jim Doyle has already directed the Department of the Administration to take some steps to close the gap, including mandating $111 million in cuts from state agencies and delaying payment on some short-term loans, but the remaining $415.9 million will need to be addressed by the governor and state legislators.
The shortfall is already sparking debate at the Capitol.
A letter from Bob Lang, director of the Legislative Fiscal Bureau, to the co-chairs of the Joint Finance Committee, made the original $300-$400 million prediction for the shortfall. Wednesday he wrote that new information from January and a February forecast “point to further weakness in general fund tax collections.”
“We had a sense this was coming because we knew the downturn in the national economy would hurt Wisconsin’s economy,” said DOA spokesperson Linda Barth.
Sen. Mark Miller, D-Monona, said the shortfall would present a challenge for the Joint Finance Committee, which he co-chairs, but it’s not the first time the state has come up short. He said the state faced a shortfall nearly twice this amount in 2002.
“We’re tightening our belts, which won’t be easy since we did it quite a bit in the last budget,” Miller said.
Miller said in order to address the problem and make sure that “everyone is part of the solution,” the state should close corporate tax loopholes.
“I think everything needs to be on the table,” Miller said. However, Rep. Kitty Rhoades, R-Hudson, co-chairs the committee with Miller and, like other Republican leaders in the Legislature, staunchly opposes increasing taxes.
“The only solution is to stop spending more than we earn,” Rhoades said in a statement.
Doyle, warning of tough choices ahead, called the shortfall the consequence of a national economic downturn. His staff has previously said he would not raise taxes to address the problem but waited on the final numbers to float any specific ideas.
“I am committed to working closely with the Legislature to solve this problem. We can get through this in a way that doesn’t raise taxes and protects what is most vital to Wisconsin — education, health care and economic development,” Doyle said in a statement. “But we must work together and be prepared to all shoulder some of the burden.”
Barth said the cuts already in place for the DOA aim to accomplish just that.
“Our goal is not to affect services,” Barth said. “Our goal is to find efficiencies.”
Barth added no cuts yet in place would affect the University of Wisconsin System, but DOA Secretary Michael Morgan has yet to determine if they could in the future.
Before the end of the budget’s biennium in 2009, the governor must submit a budget repair bill with his proposals to be considered by the Joint Committee on Finance.
Anonymous (February 14, 2008 @ 2:50pm):
I love how everyone talks about "tightening the belt", but goes on about how to justify raising more fees and taxes! "We don't want the level of service to be affected". Here's a thought, maybe we can't afford this glorious level of service I'm told we have here.
I renewed my car registration last year for $55, I just did it this year for $75. For what?
This whole Doyle not raising taxes thing is so phony! He just wants to be able to run for re-election that he held taxes, but in reality he's raised every fee, permit, license, and consumer tax he can ($1 cig tax!).
CUT SPENDING!
Anonymous (February 14, 2008 @ 7:59pm):
Yes. I am fearful, however, that UW will be
cut big time because we still have no replacement for John Wiley.
Anonymous (February 16, 2008 @ 3:13pm):
They need to get a new chancellor ASAP.
This budget problem is really bad, and UW
could be gutted because of the mess John
Wiley has made here.
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