A slowing economy could leave Wisconsin with a negative cash flow of $944 million by June, according to a memo released this week by the state Department of Administration.
The memo, sent to the legislature's Joint Committee on Finance, shows an anticipated cash shortfall at the end of the fiscal year. David Schmiedicke, the administrator for the Division of Executive Budget and Finance, said although the number may seem alarming, it is not unusual.
We often at different times of the year have negative cash flows because we make large, for example, school aid payments. The timing of that may be before we receive revenue from taxes.""
The cash flow estimates indicate the state might not be collecting as much tax revenue as originally expected.
John Murray, spokesperson for state Assembly Speaker Mike Huebsch, R-West Salem, said, ""This might be an early indicator that we might be facing some type of shortfall, but this is not the official notification of that.""
State legislators are currently preparing for a possible budget deficit. In a statement Thursday Huebsch said he would take action to curb expenses. To help balance the predicted tax revenue shortage, he said he stopped all new hires and out-of-state travel for the state Assembly members.
He said the Assembly is very concerned about the budget situation but will not consider raising taxes.
""Families and businesses don't have the option of giving themselves a raise in tight times and neither should the government,"" he said.
""We're waiting for the hard numbers so we can make some difficult decisions,"" said a spokesperson for state Sen. Judy Robson, D-Beloit.
Such decisions might include cutting funding from different programs across the state. Eric Shoot, spokesperson for state Rep. Kitty Rhoades, R- Hudson, said a large deficit would mean curbing spending on a statewide basis.
Shoot said all areas of government would need to be looked at to reduce the scope of any possible deficit, to cut spending by almost $500 million.
A full report from the Legislative Fiscal Bureau will give an official estimate of the budget deficit. The report is expected to go to the finance committee within the next couple of weeks.
