Wisconsin learned Wednesday that while it gained $200 million over the previous budget projection, it will not significantly aid efforts to balance the budget.
The Wisconsin Department of Administration delivered a report to Gov. Scott McCallum, governor-elect Jim Doyle and state legislators outlining the current state budget situation and some future possibilities for the Wisconsin's fiscal standing.
The budget deficit projected in the report fell close to $2.6 billion, nearly $200 million less than earlier predictions at or above $2.8 billion.
The calculated budget deficit also includes a $185 million shortfall in the current fiscal year, which must be solved by Doyle and lawmakers before June 30.
Although the report was sent to both McCallum and Doyle, the burden of rectifying the state budget rests solely on the shoulders of the newly elected Democrat.
Department of Revenue Secretary Richard Chandler said he felt that the slight decrease in the projected budget was good news, as it looks as if the economy is moving into a strong recovery phase. But because of an influx in prior spending increases, there exists a daunting budget challenge for Doyle to address.
\The governor-elect and the majorities in both houses of the Legislature have indicated that they don't want to raise taxes, but rather solve things by looking at state spending,"" Chandler said. ""Just about everything's on the table.""
Doyle will need to establish a special budget repair session with state legislators to determine which state-funded programs will face reductions in order to diminish the deficit.
According to Chandler, this budget coalition will have to examine every area of state government, not just the monies spent to operate state agencies, but also funds spent on local and individual aid.
In addition, Chandler said he thought it reasonable to assume the UW System will be asked to look at further reductions, perhaps even within the current fiscal year.
UW-Madison political science Professor Charles Franklin said he believes the UW System will suffer at the hands of the mass budget restructuring.
According to the DOA report, the UW System will request nearly $3.6 billion for 2004, a 4.6 percent increase over their request in 2003.
Franklin said he believes pay cuts will be likely, along with temporary halts on expensive university initiatives.
""The pain's going to get spread around everywhere, and we're going to take our hits with everyone else,"" he said.
