To accommodate campaign promises and rising costs, Wisconsin may need more than $2 billion in additional revenue to balance its next budget, according to a new report from the Wisconsin Policy Forum.
The report assumes governor-elect Tony Evers and state lawmakers will approve the same school aid increases as the current budget and give 1 percent increases to all other programs. It also accounts for funds needed because of new laws and projected Medicaid increases.
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Since 2012, annual state revenue has grown about 2.9 percent per year. To cover an additional $2.2 billion in 2019-21 costs, the state would need a 3.8 percent increase in the first year and 5.3 percent in the second.
With such revenue increases unlikely, Evers and legislators may be forced to make cuts or raise taxes.