The Legislative Fiscal Bureau, a nonpartisan agency of the Wisconsin legislature, estimated the state would have a $419.7 million net balance for the year Thursday, something Republicans said proved their past budget reforms were successful.
The LFB looked at the state’s spending and tax collection estimates to arrive at the number, according to Bob Delaporte, communications director for state Sen. Alberta Darling, R-River Hills, who currently serves as co-chair of the LFB. The positive net balance is a result of the combination of falling state spending since the last budget was introduced and a rise in tax collection.
Delaporte, comparing the bureau’s word to “gospel,” said the LFB’s financial estimates are usually very accurate and line up closely to the numbers the governor decides to use in his budget, which Gov. Scott Walker will officially announce during a scheduled address Feb. 20.
Although the estimate is the first of the year and the actual numbers have potential to change, the surplus is good news for the state and gives Republicans a basis to claim their previous cuts to areas like education were successful, according to Delaporte.
This projected surplus, the first since the state faced a large deficit at the beginning of last year’s legislative session, is a strong point for Republicans, Delaporte said.
“When we started the budget last time, we were facing a 3.6 billion dollar deficit,” Delaporte said. “Now we’re in a surplus, so it shows that the reforms have been working and our economy is getting better.”
Although it remains uncertain how the extra money will be used, Republicans, including state Assembly Speaker Robin Vos, R-Rochester, said the money would likely be used to lower taxes.
“It’s time to give taxpayers some much needed relief, as much as we can possibly afford, while still providing the essential services to our citizens,” Vos said in a statement.
Delaporte also said at least some of the money would likely go toward education in the state, although exactly how much will not be confirmed until Walker officially releases his budget.
Democrats used the surplus numbers to question the necessity of the Republicans’ cuts.
Mike Tate, chair of the Democratic Party of Wisconsin, also accused Walker and Republicans of using bad math to arrive at the surplus.
“Wisconsin remains hundreds of millions of dollars in debt,” Tate said. “Just like his phony math when it comes to his jobs failures, you can always count on Scott Walker to cook the books in his favor.”
