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2/3/2010
Ellis: Structural Deficit Balloons to $2.3 Billion
The structural deficit in the first year alone of the next biennium grew by $248 million as a result of declining revenue since passage of the current budget last summer. According to a report prepared for me by the nonpartisan Legislative Fiscal Bureau, the state faces a structural deficit of $2.3 billion in the next biennium.
That’s a shocking number. It’s time for state government to pull its head out of the sand and face the harsh, cold reality of our budget crisis.
The Fiscal Bureau report looks at the tax revenues of the current biennium which will become the base revenues for the next budget and compares them to current spending levels and spending commitments in the next biennium. When current spending and spending commitments are higher than base revenues, the result is a structural deficit in the next budget.
According to the report, spending commitments will be higher than base revenues by $1.15 billion on the day we open the books to start the next budget. To put that in the language of the average person on the street, that means our economy will have to grow by 8.9 percent just to pay for what we’re already doing.
That doesn’t include a dime of new money for schools, not a dime for Badger Care, Senior Care and other medical assistance. That’s simply the cost of standing still.
In the second year of the biennium, spending commitments will outpace base revenues by $1.17 billion.
This is the result of governors and legislators of both political parties who refuse to make the tough decisions and instead look for the quick fix through gimmicks and fund transfers. This most recent shortage is due to a $2.3 billion gift from Uncle Sam – a $2.3 billion gift that our grandchildren will pay for.
The next governor and the next legislature will have to finally get serious about government spending.
It’s long past time for state leaders to do what hard-working families across Wisconsin are already doing in tough times. We have to learn to live within our means.
Mike Ellis is a Republican and represents the citizens of the 19th State Senate District.
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| 2009 |
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• The Lawton-Bader files
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• Attend Appleton Schools budget meeting tonight
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• Burri: Kids... the joys and blessings
• Very, very worried about health care
• Rep. Huebsch: Wisconsin is proof government health care isn’t the answer
• School district contracts push up tax levy
• What? Obama, the Peace Prize?
• TODAY - hearing on Campaign Finance Reform
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• CBO report is out - and the bill isn't even written yet?
• So, how much do YOU budget for health care?
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• Important votes Tuesday, including Appleton Common Council
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• Lots of ideas. No money.
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• AASD Retirement Costs Burdensome
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