General Fund Shortage Coming
MADISON, WI (AP)—New projections show Wisconsin’s general fund will be about $650 million short of meeting spending commitments heading into the into the 2021-23 state budget.
The Legislative Fiscal Bureau released a memo Thursday that shows spending commitments under current law and the newly passed 2019-21 state budget, ranging from debt service to state worker raises to grants, will outpace revenues by the beginning of the next budget by $651 million.
The fiscal bureau cautions that the projections don’t take into account potential revenue increases or changes in state population, state program caseloads, employee compensation or inflation.
The memo says the numbers are simply meant to give legislators an idea of the starting point for the next budget.