Wisconsin may experience a $3 billion budget deficit over the next few years due to the present economic situation, Gov. Jim Doyle announced at a press conference Wednesday.
The state will feel the effects of the 18 percent stock market plunge last week and credit markets that are all but shut down,"" Doyle said.
""Wisconsin is not immune to this serious downturn in the national economy,"" he said. ""As a historical matter, every time the country has gone into recession, Wisconsin has faced a budget shortfall that amounts to 10 percent of the state budget.""
Doyle said Wisconsin has remained in good shape in some significant ways compared to other states, with real-estate values generally holding and banks largely remaining strong.
Nevertheless, Doyle said with the financial crisis and the national economy in turmoil, Wisconsin will have to make sacrifices and budget cuts will have to be made.
With 159,000 jobs disappearing nationally in September, Wisconsin unemployment compensation claims up 26 percent and experts predicting a recession lasting into 2010, government has to stay focused on priorities, according to Doyle.
""When the economy goes bad, the demand for state services goes up,"" he said, adding, ""We have seen our job figures down over 13,000 from where we were one year ago.""
Additionally, the Wisconsin Department of Workforce Development announced Tuesday state unemployment funds could run out by the end of the year because of the increase in unemployment claims.
Doyle said he is committed to dealing with the situation without tax increases and, if possible, would like to deal with the problem without cuts to education or infrastructure investments, which directly affect employment.
While education is still his first priority, as it is important for future generations, Doyle said it is not off limits for budget cuts.
""You can't say anything is off limits. We're going to have to be willing to look at everything, and it's going to get tougher to do, because we have made very deep cuts in state government over the last couple of years,"" he said.
