Decrease in Tax Revenue Contributed to State Fiscal Difficulties
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.