Decrease in Tax Revenue Contributed to State Fiscal Difficulties

Tamarine Cornelius
May 11, 2011

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There are several reasons behind Wisconsin’s very substantial budget deficit. The Governor and Legislature have focused on the role state spending has played in creating a biennial budget gap of $3.6 billion. Curbing spending will need to be part of the solution to the budget deficit, but policymakers should not overlook the fact that a significant decrease in state tax revenue was a major contributor to the state’s budget gap. Read full publication.