Reality Check: Wis. Budget -- From Surplus To Deficit
MINNEAPOLIS (WCCO) -- In the funny world of budgeting, it's true Wisconsin has a surplus -- on paper. But it's not true that Republican Gov. Scott Walker spent it for business tax breaks, and then cut union benefits to make it up.
IN FACT...
Wisconsin ends the budget year on July 1 with $121 million cash.
But the state must act on some very big IOUs:
$200 million the former Democratic governor raided from a doctors' fund to balance the budget.
And $58 million Wisconsin owes Minnesota for tax reciprocity.
That's NOT THE WHOLE STORY.
Walker and the GOP legislature did pass Wisconsin business tax cuts by $137 million. But those tax cuts don't take effect until the next budget year -- 2011 to 2013.
And, like Minnesota, that's when Wisconsin's facing a huge deficit: $3.6 billion.
Here's what you NEED TO KNOW...
You can agree, or disagree, with Walker's approach. But cutting public worker benefits would save Wisconsin $30 million this budget year and $300 million next year.
That's Reality Check.
To check the resources for Pat Kessler's Reality Check, click on the links below.
Legislative Fiscal Bureau Of Wisconsin (PDF)
Court Strikes Down Raid On Malpractice Fund
Wisconsin Could Face $340 Million Budget Shortfall
Lawmakers Push For New Reciprocity Deal
Wisconsin's State Budget -- Frequently Asked Questions
Governor Walker Introduces Budget Repair
