Revenue analysis shows a state budget repair bill is not needed. The Legislative Fiscal Bureau projects the closing gross general fund balance at the end of the current biennium to be $55.7 million Although that figure is $219.5 million below the balance projected when the current two year state budget was enacted, legislative leader say the state may avoid a budget adjustment.
Representative Mark Pocan (D-Madison), a co-chair of the legislature’s Joint Finance Committee, said that analysis shows the legislature’s budget measures are on target. Assembly Speaker Mike Sheridan (D-Janesville) said basic economic indicators are improving, and the state is on track to avoid a budget adjustment bill.
The Fiscal Bureau’s analysis said the decrease is mainly due to on a $92 million drop in cigarette tax revenues, and the loss of $92 million due to the end of income tax reciprocity with Minnesota.