You get in a plane in Vegas, land in Cincinnati, and you find out yet another one of your predictions are wrong.
I earlier said the state's structural deficit would be at $1.1 billion in the next budget. Nope. Turns out it's a $1.76 billion deficit.
And if you read the memo from LFB Director Bob Lang, the deficit is entirely due to the revenue shortfall of $281 million this year, the lower base that leads to in future years, and the fact that economic growth doesn't seem as rosy as it did at the start of the year. And it was at the start of the year when Walker and WisGOP shoved through their stupid, Bush-like tax cuts. Maybe, just maybe, they should have waited till the alleged surplus became real before they took action. But hey, why be fiscally conservative and wise.
This wrecking crew must ALL BE GONE this November. That includes Gov Walker and any of the gutless, KOO-KOOL Aid drinkers in the Legislature that voted for this crap.
I'll have more when I'm back on the ground in the Mad City. But WOW!
Actually it's entirely due to the revenue shortfall in FY14, and the lower base for subsequent years, period. -$642m + (4x -$281m) = -$1,766m. The IHS oops is a note, not a component of this forecast. If Wisconsin's economic growth from FY14 to FY15 is also lower than projected, then it can get worse.
ReplyDeleteSince FY15 tax revenue is projected to be $281m short of tax revenue vs expectations, the FY15 deficit is $396m, 2.5% of appropriations (the JS updated their article to reflect that).