The nation’s economy is showing signs of recovery, but troubled financial times are far from over.

To help weather the storm, the $62 billion state budget plan adopted last June was designed to plug a $6.6 billion and help protect state programs that the financially troubled would need. Governor Jim Doyle says whether that plan will hold up until the end of the biennium remains unknown though.

Doyle says the budget was based on some “pretty gloomy” forecasts, which have largely held up after six months. As a result, another round of cuts may be needed to help the state get back into the black financially.

If that’s the case, it’s the result of the economic downturn lasting longer than expected. Doyle vetoed an additional $200 million out of the state budget so Wisconsin could have some breathing room. At this point, he says it appears the state will need every dollar of that cushion.

Cuts in state spending have resulted in furlough days for state workers and reductions in state services. Doyle says they’ve managed to avoid eliminating programs altogether though, and additional budget cuts would need to meet that same goal.

AUDIO: Andrew Beckett reports (1:12)


Share the News