October 26, 2014

Revenue growth could deal with structural deficit

Governor Scott Walker says continued economic growth will help cover a projected shortfall in his proposed state budget.

An analysis from the Legislative Fiscal Bureau estimates the governor’s budget plan would leave the state with a $644 million structural deficit at the end of the next biennium. Although, Governor Walker says that number does not account for projected revenue growth.

Speaking with reporters on Friday, Walker said “our estimates show that, even if we were below the ten year average, we would still have more than enough revenue growth coming in the next two years of the state budget to more than make up for the projected structural.”

AUDIO: Gov. Walker (:14)

Walker says growth of just two-percent would be enough to cover any shortfall and additional expenses and points out that recent Department of Revenue figures show the state has continued to see steady growth. Walker says he anticipates that trend will continue into the next biennium.

Some Republicans have already raised concerns about the structural deficit, noting the hard work that was done in the last budget to eliminate the state’s $3 billion budget hole. State revenue estimates due out in May are expected to help lawmakers working on the budget determine whether positive growth will help shrink or eliminate the deficit in Walker’s plan.