Budget Adjustment Legislation, Again
To some extent, current events have overtaken the budget repair bill. The portion of the budget repair bill that was passed by the Legislature is now tied up in the courts, and the Governor has gone on to release his biennial budget proposals. But what didn’t change is that there was still a shortfall for the remainder of fiscal year 2011, one that needed to be addressed through additional budget repair legislation.
Last week the Governor released his proposal for additional budget repair legislation (Special Session Assembly Bill 13/Senate Bill 12), which was approved today by the state Senate and concurred in late this afternoon by the Assembly. The Wisconsin Budget Project has released an analysis of the fiscal effects of the bill (which now goes to the Governor for his signature), taken in combination with the disputed 2011 Act 10.
Together, these pieces of legislation are not very different from the Governor’s original proposal (Special Session Senate Bill 11). The only difference is that more recent estimates by the administration indicate that an additional $24.0 million is needed to cover the Medicaid shortfall.
One interesting note about the two-part budget adjustment legislation is that even if 2011 Act 10 – the contested part of the budget repair legislation that includes restrictions on collective bargaining – is found to be invalid, the bill; approved today would cover the shortfall through the end of this fiscal year.
Check out the new Wisconsin Budget Project analysis here.