MADISON, WI (WTAQ-WRN) — State revenues over the next three years will be much higher than previously projected.
An additional $4.4 billion could mean tax cuts, reduced borrowing, increased funding for K-12 schools or other programs. It all of that hinges on whether or not Governor Tony Evers and Republican legislative leaders can reach agreement – something that’s rarely occurred.
Republicans on the legislature’s Joint Finance Committee have already warned about spending the windfall.
Bob Lang, director of the nonpartisan Legislative Fiscal Bureau, wrote in a memo that “the increase in general fund tax collections in 2021, particularly in April and May, is unprecedented.”
Jason Stein, Research Director with the Wisconsin Policy Forum, injects a note of caution.
“That projection has been revised upward, in a way that I have never seen before. But it is worth noting that we do not have all of this money. Some of it has yet to arrive, and it’s always possible that it doesn’t arrive. It could be more or less than what is projected.”
Democratic Governor Tony Evers wants Republican legislators to spend more on K-12 schools, and rescind previously announced cuts to state agencies. Assembly Speaker Robin Vos says he favors up to a four billion dollar tax cut.
