WISCONSIN PROJECTED TO END BIENNIUM WITH SURPLUS
Madison – New revenue projections prove that Wisconsin is headed in the right direction. A biennium that began with a $3.6 billion deficit is set to conclude with a $154.5 million surplus. The Wisconsin Department of Revenue is reporting higher than expected general fund tax collections for fiscal years 2011-12 and 2012-13.
“When I first went to Madison, the state faced the daunting task of balancing a budget with a $3.6 billion deficit,” said Severson. “By cutting spending and reducing the size of government, we were able to balance the budget without raising taxes and without accounting gimmicks.”
The revised projections are based on improved tax collections data, federal Bureau of Economic Analysis data, and improved economic forecasts by IHS Global Insight. Both the Bureau of Economic Analysis and IHS Global Insight are projecting improved growth of personal income in Wisconsin. According to state statutes, if revenue exceeds initial projections, half of the surplus must be transferred to the Budget Stabilization Fund, commonly referred to as the “rainy day fund”.
“Not only did Wisconsin pass the first balanced budget in over a decade, this is the first time in state history that we will have added to the state’s rainy day fund in consecutive years,” said Severson. “The short sighted tax and spend policies of the past created uncertainty that put business owners into a holding pattern and stalled job growth in Wisconsin. These revenue projections show that when government gets out of the way, the private sector will do what it does best—create jobs.”