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April 29, 2019

State Budget Update – Fiscal Responsibility at Great Threat

      Senator Steve Nass (R-Whitewater) is raising the alarm today that taxpayers and the conservative fiscal restraint of the last eight years are under great threat as the 2019-21 biennial budget process enters a critical phase.  The powerful Joint Finance Committee (JFC) commences the voting process next week on all aspects of state finances for the next two years.     

“There are growing indications in the Capitol that some Republicans are willing to pass an ‘Evers-lite’ budget filled with excessive spending and increases in taxes and fees.  I also fear that some of Evers’ extreme policy proposals may also survive such as the Medicaid expansion and weakening of our criminal justice system to benefit criminals with softer penalties,” Nass said.

     Nass noted that Governor Evers’ 2019-21 biennial budget proposal would create a $2 billion structural deficit at the beginning of next budget period (2021-23), according to the nonpartisan Legislative Fiscal Bureau.  By comparison, the current state budget that ends on June 30, 2019 (Governor Walker’s last budget) leaves an $860 million structural deficit.

“In recent days, I have been shocked to hear some of my colleagues are open to a JFC budget with a structural deficit in excess of $1.5 billion.  Such a development would make it impossible for me to support such an excessive level of spending,” Nass said.

     Finally, Nass also mentioned a growing willingness amongst some Republicans to increase the gas tax, re-institute automatic gas tax indexing and raise the automobile registration fee from the current $75 annual renewal.  All proposals that Senator Nass opposes for inclusion in the final state budget.