Governor Calls Special Session to Deal with Budget Shortfall

Gov. Jim Doyle said Thursday (January 23, 2003) that he will call a special legislative session to deal with the growing budget deficit.

The governor's announcement came after the Legislative Fiscal Bureau issued budget projections that showed a $452 million budget deficit in this fiscal year.

"News that the budget shortfall has grown to $452 million just for the current fiscal year is very alarming," WEAC President Stan Johnson said. "The state is in deep trouble and must find its way out now. We applaud the governor for taking the lead in trying to solve this huge problem."

The deficit is estimated at $3.2 billion for the next biennium, which begins July 1.

Doyle is proposing an emergency budget bill calling for $161.5 million in immediate savings.

The proposed cuts include 5% reductions in state agency operations, legislative operations, and the University of Wisconsin administrative spending.

The Department of Revenue faces a 1 percent reduction.
Grants for programs including the Wisconsin Development Fund, tourism marketing, and tobacco control will be cut and the funds transferred to the state treasury.

"The budget the Legislature passed last year is now out of balance," Johnson said. "It is up to the Legislature to fix the problem."

Johnson said the governor is taking steps to protect the most vulnerable.

The emergency budget bill does not reduce spending for health care needs for the elderly, disabled and poor by providing funds to meet anticipated cost overruns in the medical assistance and Badger Care programs.

"The budget deficit will affect every WEAC member and every Wisconsin resident," Johnson said. "The deficit is so large that programs and services will be cut. WEAC will work to find solutions that balance the need to eliminate the deficit with the need to preserve essential state services to school districts and communities."

Posted January 24, 2003