SPN MacIver Institute 2012 National Think Tank of the Year
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State Finances in the Black with Increased Revenue Projections

Comments | Posted in News | By MacIver Institute | Posted May 10, 2012 4:55 PM


MacIver News Service | May 10, 2012

[Madison, Wisc...] Wisconsin's Department of Administration revenue projections show the state is expected to finish the two-year budget cycle in the black and, for the first time in a decade, the state will have enough of a surplus to transfer money into the rainy day fund in consecutive years.

"This is great news for Wisconsin taxpayers. When we balanced the state budget and erased a $3.6 billion deficit, our goal was to return financial stability to the state," said State Representative Robin Vos, the Assembly Co-Chair of the Joint Committee on Finance. "This is a great example of how honest budgeting pays off."

The Department of Administration expects the state's revenue forecast to improve by more than $265 million.

"When we started, the Democrats left us with a $3.6 billion deficit and jobs were fleeing the state," said State Senator Alberta Darling, the Senate Co-Chair of the JFC. "Instead of kicking the can down the road, Governor Walker and Republicans rolled up our sleeves, passed real reforms, and cut taxes. Our state is seeing the benefits of those reforms. Our budget is in the black."

Two months ago Legislative Fiscal Bureau officials reduced its projected general fund tax collections by $272.8 million and said the state faced a deficit of $143 million through June 30, 2013. However, Department of Revenue officials credit job creation and growth in personal income for the increased revenue projections.

"While critics want to talk down Wisconsin and root against our state, we are showing once again that we're heading in the right direction," said Rep. Vos.

The state has also completed debt refinancing, which saved $78 million over the biennium and the 2012-2013 budget cycle conclude with a $154.5 million surplus and will allow the state to put $45.4 million into the state's rainy day fund.


Comparing the last two state budgets.


2009-2011

Benchmark

2011-2013

More than $2 billion

Increased taxes

$0
6.2% or $3.6 billion

Increased spending

1.8 % or $1.1 billion
$3.58 billion

Allowed Bonding

$1.73 (down 52%)
$1.5 billion

Allowed local property tax hike

$480 million
(-$2.33 billion)

Projected Structural Deficit/Surplus

+$154.5million

(5/10/12 Estimates)
(-$3.6 billion)

Actual Structural Deficit/Surplus