Wisconsin cities are already getting ready to deal with potential cuts in shared revenue from the state.
Governor Jim Doyle announced Thursday that shared revenues could be cut by up to five-percent, to help deal with a state budget deficit that may grow by an additional $1 billion.
Wisconsin Alliance of Cities Executive Director Ed Huck says the announcement was not a surprise. He says it's a tragedy that the budget may force such action, but their members across the state know something must be done to deal with a dire financial situation.
The loss of state funding could feed fears about local property tax increases, but Huck says that should not be assumed. He says it's more likely that local services will be cut. However, Huck says laying off too many workers could result in a spiral of losses due to lower income tax collections.
The governor met with mayors privately this week to inform them of potential cuts.
