Report: State may need $2.2 billion more to balance budget

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.

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.

» Read more from the Wisconsin Policy Forum
» Read the Milwaukee Journal Sentinel story