Wisconsin could face a budget gap of as much as $2 billion over two years
MADISON - State spending is projected to outstrip revenue by at least $373 million over two years unless lawmakers cut expenses, raise taxes or get a boost in federal aid, according to a report released Monday.
That spending gap assumes the state doesn’t commit to new spending despite rising costs. When increased health care expenses, other costs and a potential boost in school aid are taken into account, the budget shortfall could swell to more than $2 billion, according to the report by the nonpartisan Wisconsin Policy Forum.
The state is expected to have more than $2 billion in reserves when the fiscal year ends in June, so it would have enough on hand to cover such costs. But relying on reserves would wipe out all or almost all of the funds state officials have socked away over the last decade, and Republicans who control the Legislature will be reluctant to do that.
To get a handle on the state’s fiscal picture, the policy forum compared expected revenue to projected spending under the state’s current policies for the budget that will run from July 1, 2021, to June 30, 2023.
Read more: https://www.jsonline.com/story/news/politics/2020/12/07/wisconsin-could-face-budget-gap-much-2-billion-over-2-years/3853232001/
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