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The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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Budget shortfall $200 million higher than initially stated

While Gov. Jim Doyle spoke about the expected shortfall of $5.7 billion in his budget address Tuesday night, the amount the governor and legislators will have to deal with is actually $200 million higher — amounting to a total shortfall of $5.9 billion.

According to Doyle spokesperson Lee Sensenbrenner, the governor spoke to reporters Tuesday night before his address and acknowledged the shortfall increase.

Sensenbrenner added the increase was not the result of an increase in a certain area of the budget, but rather the result of backup materials.

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“It gets pretty complicated why one number is a little different,” Sensenbrenner said. “It’s just a different way of stating all the impacts on the budget.”

According to the state’s Budget in Brief document, the increase was caused by increases in health care, childcare and prison and correction costs.

Kimberly Lidel, spokesperson for Senate Minority Leader Scott Fitzgerald, R- Juneau, said with the budget shortfall increasing, the proposals the governor is making just do not make sense.

“With the deficit increasing, it’s just not the time to increase spending,” Lidel said.

However, Senate Majority Leader Russ Decker, D-Weston, is optimistic about the state and federal stimulus packages and their ability to help solve the state’s budget crises.

“We’re very hopeful that the stimulus package will get the economy going again,” Carrie Lynch, Decker spokesperson, said. “If it doesn’t, we’ll have to take additional measures down the road.”

The state is now expected to face a $5.9 billion shortfall over the next two years, including a $600 million shortfall on the current budget, set to expire at the end of June.

According to the governor, however, the budget he introduced last night, combined with the state and federal stimulus packages, will help alleviate the constraints felt by the state.

He added these precautions will eventually result in a budget surplus of $270 million by the end of 2011.

The budget will be sent to the legislative Joint Committee on Finance before being sent to both the state Assembly and Senate to vote on the bill.

The new budget will take effect June 30 and will last until the middle of 2011.

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