Fiscal Bureau Report Projects Looming Budget Deficit
A non-partisan state government agency is predicting a possible budget shortfall in the next cycle.
A new report cautions the new state budget crafted by the Walker administration, and modified by Republican lawmakers, would increase property taxes and produce a huge deficit by 2015.
The Legislative Fiscal Bureau estimates a shortfall of more than $500 million in the 2015-2017 budget.
The bureau report also estimates average homeowners’ property taxes would increase by about $30 this year.
The projected budget shortfall stems from a decision by the legislature to make deeper cuts than called for by Gov. Scott Walker in state income taxes.
The tax cut would be funded in part by a surplus in the current state budget.