Gov. Scott Walker said last week he would not push for another budget repair bill to help balance the state’s budget after the Legislative Fiscal Bureau released its most recent report Thursday, revealing a shortfall of approximately $214 million.
The change in budget standing from a projected surplus of $71 million in October to approximately $143 million in deficit reported Thursday came as a surprise to people around the state.
In a statement earlier in the week, Walker said he would not consider another budget repair bill, instead expressing his confidence that the state would finish its two-year budget cycle with a balanced budget and promising to “keep the state’s fiscal house in order.”
In 2011, Walker signed into law a budget repair bill that ended collective bargaining rights for public employees and cut state spending. The backlash to the legislation led to the protests at the Capitol last year and the ongoing recall efforts.
According to Andrew Rechovsky, Professor of Public Affairs and Applied Economics at UW-Madison, a budget repair bill is not necessary right now. He said because the low budget numbers are projected through June of 2013, Rechovsky agrees with Walker that the low budget is not immediate problem.
“If this were not February 2012 but it was February 2013 and we were facing a $200 million gap, then you may have to call the legislature in and say you have to change the laws…but I think the governor is right that we still have enough time,” said Rechovksy.
However, Walker and Attorney General J.B. Van Hollen have taken some steps to reinforcing the state budget. They plan to use $31.6 million of a $140 million federal package given to the state in an effort to help homeowners hurt by unfair mortgage practices, and use it to fix the projected budget deficit.
The action has drawn criticism from those who believe all the money should go to the homeowners it was meant for.
State Rep. Louis Molepske, D-Stevens Point, criticized Walker and Van Hollen’s choice to redirect some of the federal settlement money toward fixing the budget.
“It is truly disappointing that Governor Walker feels that he can use Wisconsin’s foreclosure settlement dollars as his own state piggy bank in an attempt to cover up the true effects of his extreme and unfair state budget,” said Molepske.
