Wisconsin is facing a larger biennial budget shortfall than originally projected according to new estimates, and it is one that could require emergency action by legislators and the governor’s office.

In a memo sent Thursday to Joint Finance Committee chairs Alberta Darling, R-River Hills, and Robin Vos, R-Burlington, Legislative Fiscal Bureau Director Robert Lang said new estimates show the state could face a $143 million budget shortfall by June 30, 2013.

The estimate differs by $216 million from the bureau’s previous prediction of the state having an approximately $73 million surplus. Lang said in the memo this is due in part to an approximate $273 million decrease in estimated tax collections.

“The [Walker administration] is currently discussing steps it might take to address the budget shortfall, including debt refinancing and restructuring,” Lang said in the memo.

Dave Loppnow, a spokesperson for the bureau, said the administration could also pass an emergency budget bill. He said either approach could be feasible, but if the governor addressed the issues through refinancing and restructuring he has the authority to do it without involving the Legislature.

Loppnow said the state constitution contains a provision which says when a state finishes a year with a budget shortfall, it has to address it in the next year. He said the administration could choose to address the issue during the period from 2013 to 2014.

“However, as a practical matter they would probably address it within the next year,” Loppnow said.

Andrew Welhouse, spokesperson for Senate Majority Leader Scott Fitzgerald, R-Juneau, said the budget lapse is about $71 million below the threshold that would require it to be fixed. He said the Walker administration said it plans to deal with the shortfall through other measures.

Gov. Scott Walker said in a statement the new estimates show that they will finish the fiscal year in a surplus, and he plans to manage Wisconsin taxpayer’s money well to keep the state budget balanced.

He said the actions he took to balance the budget stand in contrast to what other states have had to do to deal with the current economic state. He said Illinois Democratic Gov. Pat Quinn is proposing higher taxes and cuts to Medicaid, and Maryland Democratic Gov. Martin O’Malley is proposing tax increases to combat shortfalls.

“When compared to the past and to other states, Wisconsin is heading in the right direction,” Walker said.

Assembly Minority Leader Peter Barca, D-Kenosha, said in a statement the current estimates reflect Walker’s irresponsible budgeting, and these decisions have caused Wisconsin to fall farther behind on the road to economic recovery.

“The evidence is clear – Walker’s economic plan is not working,” Barca said. “Massive giveaways to large corporations and wealthy special interests, extreme policies that have harmed Wisconsin working families and six straight months of job losses have all added up to the poor budget projections we see today.”

In response to allegations by Democrats that this budget shortfall reflects the failed policies of the Walker administration and Republican-controlled Legislature, Welhouse said Democrats raised taxes on small businesses during a recession to settle a budget shortfall in 2009.