Wisconsin's projected budget deficit has grown to more than double that of the previous estimate, increasing the possibility of deep cuts to the UW System and other state agencies.
Figures released Thursday by the Wisconsin Legislative Fiscal Bureau place the state's projected budget deficit at $373 million for this fiscal year, which ends June 30. Gov. Jim Doyle added $64 million in medical assistance and BadgerCare shortfall and a $15 million shortfall in corrections, topping the overall deficit at $452 million.
\It doesn't look good,"" said Bob Lang, director of the Legislative Fiscal Bureau.
Lang said lower than expected tax collection from income tax and holiday sales tax led to the larger than expected deficit.
The shortfall will cause immediate cuts to the UW System budget, and more could come in the future. According to UW System Spokesman Erik Christianson, the governor's office told the System Thursday it would have to cut $6.9 million from the institutional support area of its budget, which includes human resources, payroll, safety and security and transportation.
""We will work to minimize the impact this reduction will have on our institutions and our students,"" Christianson said. ""We are appreciative that these reductions will not impair the core areas of instruction and research efforts.""
The system has taken more than $100 million in cuts over the last decade, Christianson said, and if enrollment continues to increase, the system would have to consider cutting enrollment or raising revenue, including tuition.
Christianson stopped short of saying tuition would undoubtedly increase, but state Rep. Spencer Black, D-Madison, said he believes it is inevitable.
""Everybody knows there's going to be some tuition increase,"" Black said. ""What's important is to make sure tuition increases are modest and affordable.""
A bill passed last year links state financial aid increases with tuition increases, but that will only ease part of the burden if tuition rises, Black said.
Doyle has said he does not want to raise tuition. He has also said he would not raise taxes and he stuck to that promise Thursday, saying he was confident he could produce a balanced budget without raising taxes. Doyle also called for a special session of the Legislature to deal with the problem. He did not set a date yet but said he had an emergency bill that would save $161.5 million immediately and would roll the rest of the shortfall into next year's budget.
A special session could fix this year's deficit, but the following biennium cycle the state will have to deal with a $3.2 billion shortfall. The previous projected shortfall for that biennium was $2.6 billion.
