State Had $200M Less Than What Was Expected At End Of Fiscal Year

The state of Wisconsin ended the last fiscal year with $517 million in the bank — $207 million lower than what budget forecasters initially predicted.

The drop in the state’s ending balance is partly because the state government generated tax revenue slower than it expected.

The balance is still $74 million higher than a more recent projection, since the Walker administration spent slightly less than was actually budgeted.

The last fiscal year was just the first of Wisconsin’s two-year budget. The budget for year two — the one we’re in right now — is potentially direr. Even if forecasts of increased tax revenues prove to be accurate, the state will end next the fiscal year next June with a deficit. The nonpartisan Legislative Fiscal Bureau had initially said that deficit could hit nearly $400 million.

The Fiscal Bureau said Wednesday it was still analyzing data the latest numbers to see how that figure might have changed.

The only thing certain about revenues right now is that in the first quarter of this fiscal year, they were down again by 2.3 percent. The Walker administration said that that the drop was expected, since the state adjusted income tax withholding.