Budget Deficit Projection Will Change Based On This Week’s Tax Collection Estimates

The size of the state’s budget shortfall could become clearer this week with the release of new estimates on tax collections.

The nonpartisan Legislative Fiscal Bureau said it’s hoping to release new revenue estimates this week. If they project an uptick in tax collections, it would mean a smaller budget hole to fill for Gov. Scott Walker and the state Legislature. If they project a downturn in revenue, the budget hole gets even bigger.

As of right now, the state faces a $2.2 billion gap between how much state agencies want to spend in the next budget and how much revenue the state is expected to generate. Republicans downplay that number, saying it’s based on a “wish list” from agencies. But even if that wish list gets pared down and the state spends only what it’s required to in the next budget, the most recent Fiscal Bureau memo projected an $824 million shortfall.