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12/29/2009
WRN carrying water for Doyle
According to the Wisconsin Radio Network (WRN), “Budget Repair Could Be Needed in 2010.” Could?
Doyle says the budget was based on some “pretty gloomy” forecasts, which have largely held up after six months. As a result, another round of cuts may be needed to help the state get back into the black financially.
If that’s the case, it’s the result of the economic downturn lasting longer than expected. Doyle vetoed an additional $200 million out of the state budget so Wisconsin could have some breathing room. At this point, he says it appears the state will need every dollar of that cushion.
Cuts in state spending have resulted in furlough days for state workers and reductions in state services. Doyle says they’ve managed to avoid eliminating programs altogether though, and additional budget cuts would need to meet that same goal.
Seems to me we’ve known all along this smoke-and-mirrors budget (increasing total spending by 9% in an ‘economic downturn’) would be a problem.
As with past tobacco bonds, debt refinancing, and transfers from other funds (most notably transportation and injured patients compensation), federal stimulus monies are one-time revenues that will leave a hole—a "structural deficit"—in the 2011-13 biennial budget.
According to the LFB, these imbalances will total $899m going into 2010-11 and $1.15b the year after, if no action is taken. In addition to stimulus funds, other items contributing to these totals include, among others, increased borrowing, a property-tax-credit "accounting trick," implementation of delayed tax breaks, fund transfers, and statutory promises of new spending.
Amidst creation of $millions in unbudgeted spending via the new OWI bill and a possible $1 billion hole in the Medicaid budget, Wisconsin won’t have a budget problem?
But according to Doyle, via the WRN article once again, it’s all that damned economy – couldn’t possibly be exuberant promises, a few winks and here’s hoping for a quick expansion.
If that’s the case, it’s the result of the economic downturn lasting longer than expected. Doyle vetoed an additional $200 million out of the state budget so Wisconsin could have some breathing room. At this point, he says it appears the state will need every dollar of that cushion.
Cuts in state spending have resulted in furlough days for state workers and reductions in state services. Doyle says they’ve managed to avoid eliminating programs altogether though, and additional budget cuts would need to meet that same goal.
And the fix can’t eliminate a single program. Oh my. More delusion.
Jo Egelhoff, FoxPolitics.net
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