With the state projected to spend $500 million over budget in 2009 and no federal assistance coming from President George W. Bush’s administration, Wisconsin officials are counting on President-elect Barack Obama for federal aid.

Since the previous summer, the financial situation has gotten worse throughout the nation and Wisconsin has not escaped the crisis. According to Wisconsin Budget Director Dave Schmiedicke, this will make figuring out the budget quite the challenge.

“I think most economists would agree that the country, if not the world, is in recession, and it looks like it will be a long and deep one,” Schmiedicke said.

The effects of the dwindling economy can be seen across Wisconsin. The personal incomes of Wisconsinites have decreased, in turn affecting consumer spending which has caused tax revenues for the state to decrease dramatically.

According to Rep. Scott Suder, R-Abbotsford, the Wisconsin government is “too willing to increase taxes before figuring out other solutions.” He said a tax increase should be the last place to turn to since Wisconsinites are already struggling enough.

Suder, who sits in the joint finance committee, said his course of action would be to control government spending, evaluate existing programs and not necessarily rely on federal aid to get out of the economic slump.

“I think Wisconsin is capable of solving its own problems, and I don’t think Wisconsin should look to federal funds as the first option,” Suder said.

According to Suder, the federal government has room for improvements, one of the most important being health care reimbursements for Medicaid and BadgerCare. Currently, Wisconsin is ranked 49th for the amount of money reimbursed by the federal government for such programs.

“We have to first take care of the most vulnerable people and keep those programs like BadgerCare in place, then put more money in K-12 education and continue to build and maintain roads,” Suder said.

Before further budget discussions can proceed, several agencies will have to submit their budget requests to Gov. Jim Doyle, many of which will be submitted today.

Rep. Spencer Black, D-Madison, said the important thing to look at is how the recession came about in the first place. He blamed Republicans and President George W. Bush’s administration and added that we should look to the future Obama administration for aid.

“I think we will get some real relief with policies passed by Barack Obama,” Black said.

Black added Wisconsin could save money by looking at closing corporate loopholes within the state revenue budget, as well as preserving those programs that benefit Wisconsin.

Like Suder, Black said additional federal revenue could come from hospital assessment and Medicaid reimbursements. Obama’s plans for increased federal assistance as well as reimbursements could save Wisconsin $1 billion, Black said.

“There are still a lot of issues to address, and it will be a long process before the budget is complete,” Schmiedicke said.