As a result of a slumping economy, the state budget may find a lump of coal in its coffers instead of the $1.3 billion it will need to continue operating in its current form.
Gov. Scott McCallum said he would make every effort to avoid increasing taxes, and instead will look to other alternatives to account for the revenue shortfall.
“I think it needs to be clarified that the governor has not said he wants to raise taxes,” said Tim Roby, spokesman for McCallum. “He is looking at cutting spending as a first option.”
Any tax increase as well as program cuts will meet opposition on both sides of the aisle from the state legislature.
“We’ll know more after the holidays. We’ve only seen a quarter of the budget in action,” said Senate President Fred Risser, D-Madison.
It has become clear the revenue predictions in the 2001-2003 fiscal year budget will not fully cover state costs.
“Worst-case scenario, we can appropriate to deal with the problem, but that does not solve things, it only puts them off,” Risser said.
However, the approach of going deeper in debt will meet harsh partisan opposition in both houses of the state legislature.
“I am confident that we can find a billion dollars. It may not be easy, but I’m confident we can do it without cutting core services,” said Rep. Scott Suder, R-Abbotsford.
Opportunities for slashing frivolous spending abound, Suder said. He cited a state program created in 1985 allowing Milwaukee residents to ride a free bus to visit family members in prison as an example.
Risser also provided options for spending cuts.
“We spend over $100 million a year to house prisoners outside of the state,” Risser said. “We can cut costs by bringing them back and keeping that money in state.”
Risser said he would like to examine the possibility of shifting some of the deficit’s burden to Wisconsin smokers.
“Raising taxes by a dollar a pack would not only bring in additional revenue but discourage teen smoking,” Risser said.
However, Risser said the state’s tax system could be tinkered with without passing a formal tax increase.
“Many people do not know this, but there is a stipulation in state law that income taxes are reduced fractionally each year,” Risser said. “We should consider a moratorium on this indexing of the income tax.”
However, if the legislature waits until after the holiday season to call a special session to solve the problem, the prospect of a tax increase for Wisconsin citizens seems distant.
“I along with my colleagues in the Assembly will under no circumstances support a tax increase,” Suder said. “We need to cut spending across the board, but by no means will we see a tax increase.”
