The state’s structural deficit will climb to a projected $1.76 billion in the next term, according to new numbers released by the nonpartisan Legislative Fiscal Bureau today.
That’s a huge jump from the LFB’s estimate in May that the state would face a projected $642 shortfall in the 2015-2017 biennial budget.
That means that the state will need to come up with almost $2 billion to balance the budget going forward.
Although the LFB is not political or partisan, these numbers could impact the race for governor.
Walker, of course, is campaigning on his tackling of the state’s $3.6 billion deficit when he took office. His latest TV ad basically says, sure, I didn’t create the 250,000 jobs I promised I was going to create, but at least I beat back that deficit by gutting public employees’ collective bargaining rights and slashing state spending and taxes.
That claim seems to be wiped out now that the state is facing a massive deficit going into 2015.
Democrats are already seizing on the new numbers to take aim at Walker’s austerity policies.
Democratic gubernatorial candidate Mary Burke released a statement saying: “Governor Walker's fiscally irresponsible approach and his failed stewardship of a lagging economy, has resulted in a state budget picture that is a mess. From irresponsible tax breaks to those at the top to refusing to accept the federal expansion of Medicaid, costing Wisconsin taxpayers hundreds of millions of dollars, it’s no surprise that we face a projected structural deficit of $1.76 billion heading into the next budget, and a projected $115 million deficit this budget. I have spent my career balancing budgets and insisting on accountability; setting priorities and getting the biggest bang for the buck. Governor Walker has spent money we don't have. In the business world, if a CEO created this big of a financial mess, he would be fired.”
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But state Sen. Alberta Darling and Rep. John Nygren, the Republican chairs of the Joint Finance Committee, are looking at another set of numbers, claiming, “Wisconsin does not have a deficit. Thanks to Republican reforms, the 2014 budget will begin with a $443 million surplus. We also have the largest rainy day fund in state history.”
Notice how they choose to ignore the LFB’s estimates about the 2015-2017 biennium. I can't wait for Walker to try to spin these numbers in his next TV ad.
