Last week, we learned that tax revenue collected by the state in April was less than originally anticipated. This shortfall means that Wisconsin's budget deficit is $1.6 billion larger than expected, and now stands at $6.6 billion.
While these numbers may be new, the root cause is not - the national economic crisis is devastating state budgets across the country.
When the economy slows, fewer people are employed, and fewer people are buying goods and services. Income tax and sales tax revenue falls dramatically, and budget deficits widened to unprecedented levels.
Wisconsin is not alone - 47 states faced or are facing budget deficits. Though the challenges are daunting, we will meet them head on and solve this deficit crisis.
It starts by passing a smart, responsible budget. We know that families across Wisconsin are tightening their belts in these tough times. Government must do the same. The plan we are working on features $2.2 billion in spending cuts - the deepest in Wisconsin history. This includes the 6 percent spending reduction we made from the Legislature's operating budget.
Now, we will make even more cuts, and find new ways to get more for less. In addition, the Assembly will furlough legislative staff for eight days this year and next year.
And while the State Constitution prohibits a legislator from being furloughed, I will make the same sacrifice that we are asking of our staff and give back 16 days of pay over the next two years. Many of my colleagues will do the same. We also will minimize the impact of this deficit on Wisconsin's middle class and working families. Under this budget, more than 99 percent of all Wisconsinites will see no income tax increase, and there is no general sales tax increase.
The root cause of the deficit remains the deep recession. In March, Wisconsin's unemployment rate reached 9.4 percent - the fifth consecutive monthly increase, and the highest level Wisconsin has seen in 27 years.
That is why Assembly Democrats are pursuing an aggressive agenda to create jobs, boost businesses, support workers, and grow the economy. We passed legislation to direct taxpayer dollars to Wisconsin businesses and workers instead of firms overseas.
We authorized $300 million for Wisconsin's roads and bridges, creating or retaining 9,000 jobs.
We approved tax credits to help people launch new business ventures; to grow the critical dairy, meat processing and high-tech industries; to spark new investment in ruralcommunities and for small businesses; and to create and retain jobs in economically distressed areas.
We passed $3.6 million in worker training efforts to invest in the green economy of tomorrow.
We extended unemployment benefits and health care coverage for those who have lost their jobs, to help them get through these tough times.
If we get people back to work, we will get our economy turned around, and the budget solved. That is why Assembly Democrats' top priority is to expand opportunity and prosperity for everyone in Wisconsin.
While these numbers may be new, the root cause is not - the national economic crisis is devastating state budgets across the country.
When the economy slows, fewer people are employed, and fewer people are buying goods and services. Income tax and sales tax revenue falls dramatically, and budget deficits widened to unprecedented levels.
Wisconsin is not alone - 47 states faced or are facing budget deficits. Though the challenges are daunting, we will meet them head on and solve this deficit crisis.
It starts by passing a smart, responsible budget. We know that families across Wisconsin are tightening their belts in these tough times. Government must do the same. The plan we are working on features $2.2 billion in spending cuts - the deepest in Wisconsin history. This includes the 6 percent spending reduction we made from the Legislature's operating budget.
Now, we will make even more cuts, and find new ways to get more for less. In addition, the Assembly will furlough legislative staff for eight days this year and next year.
And while the State Constitution prohibits a legislator from being furloughed, I will make the same sacrifice that we are asking of our staff and give back 16 days of pay over the next two years. Many of my colleagues will do the same. We also will minimize the impact of this deficit on Wisconsin's middle class and working families. Under this budget, more than 99 percent of all Wisconsinites will see no income tax increase, and there is no general sales tax increase.
The root cause of the deficit remains the deep recession. In March, Wisconsin's unemployment rate reached 9.4 percent - the fifth consecutive monthly increase, and the highest level Wisconsin has seen in 27 years.
That is why Assembly Democrats are pursuing an aggressive agenda to create jobs, boost businesses, support workers, and grow the economy. We passed legislation to direct taxpayer dollars to Wisconsin businesses and workers instead of firms overseas.
We authorized $300 million for Wisconsin's roads and bridges, creating or retaining 9,000 jobs.
We approved tax credits to help people launch new business ventures; to grow the critical dairy, meat processing and high-tech industries; to spark new investment in ruralcommunities and for small businesses; and to create and retain jobs in economically distressed areas.
We passed $3.6 million in worker training efforts to invest in the green economy of tomorrow.
We extended unemployment benefits and health care coverage for those who have lost their jobs, to help them get through these tough times.
If we get people back to work, we will get our economy turned around, and the budget solved. That is why Assembly Democrats' top priority is to expand opportunity and prosperity for everyone in Wisconsin.
