Wisconsin is ill-prepared to deal with a projected budget shortfall of up to $400 million, a nonpartisan policy research group said Tuesday.
According to Wisconsin Tax Alliance?s report, Wisconsin lags behind other states in budget surpluses.
Todd Berry, president of Wisconsin Tax Alliance, said a series of unwise budgeting techniques have put the state in a poor financial position.
?Compared to virtually any other state, we?re sitting on far less cash, so if the economy takes any kind of turn, while in other states they have enough in reserve to deal with the problem, we do not,? Berry said.
The report said Wisconsin reserves in 2006 and 2007 were equal to 0.4 percent of spending compared to national averages of 11.5 percent in 2006 and 9.6 percent in 2007.
?States just can?t control what?s going on with the national or global economy, so if they want to protect themselves, they have to have a cushion,? Berry added. ?Other states do, and we do not, and that?s not too smart.?
Carla Vigue, spokesperson for Democratic Gov. Jim Doyle, defended his work on budgets since taking office in 2003.
?Gov. Doyle was handed a $3.2 billion budget deficit when he took office,? Vigue said.
Berry also said the fact that Wisconsin?s budget isn?t ?well in hand? directly affects the university system.
?From a student perspective, what this has meant over the last five to 10 years, is frankly state dollar support for the university system has been virtually unchanged, and as a result tuition has increased, in some years fairly rapidly,? Berry said. ?It?s politically easy, and Wisconsin has pretty much proved that.?
Berry added the list of unwise budgetary decisions includes balancing the general fund with money from other sources, failing to put money in the budget stabilization (or ?rainy day? fund) and starting the budget with structural deficits.
?For instance, in 1986 a governor?s commission recommended a rainy day fund,? Berry said. ?The state started one, and for the next 20 years didn?t put a dime into it.?
Vigue said Doyle was the first governor to set aside money in that fund, totaling $50 million.
