Wisconsin will face a $143.2 million projected state budget deficit for the 2012-2013 fiscal year, a release by the state's Legislative Fiscal Bureau revealed Thursday, adding another dimension to the possible recall elections this spring or summer.
According to the bureau, the budget deficit comes because of decreases in several revenue-generating areas. The biggest factor on the deficit is a shortfall in the estimated tax collection, which is projected to cause a loss of $272.8 million dollars compared to what they thought it would be.
The deficit has raised questions about the possibility of another budget repair bill. However, Gov. Scott Walker released a statement denying that he would seek such measures. Instead, he said he remains confident that the state will finish the next two-year cycle with a balanced budget.
"As we have done in the last year, we will continue to manage the Wisconsin taxpayers' money well, so we can keep the state's fiscal house in order," said Walker.
But with a potential recall election looming, Walker opponents said he has not followed through on his campaign promise to balance the state's budget.
One criticism came from Assembly Minority Leader Peter Barca, D-Kenosha, who issued a statement saying Walker's economic plan "is not working."
"[The report] illustrates how Gov. Walker's irresponsible budgeting and lack of serious focus on jobs and the economy have left Wisconsin fiscally unsound and caused us to fall farther behind on the road to economic recovery," said Barca.
Rep. Robin Vos, R-Rochester, and Sen. Alberta Darling, R-River Hills, who chair the Joint Committee on Finance, released a statement touting the economic achievements since Walker took over and defending him from Democratic politicians who see his economic initiatives as unsuccessful.
"When Republicans and Governor Scott Walker took over, we rolled up our sleeves, made tough decisions and got our state headed in the right direction without raising taxes. We erased a $3.6 billion deficit and held the line on property taxes," the legislators said.
Despite the controversy, Walker said in his statement, "When compared to the past and to other states Wisconsin is heading in the right direction."
