Increased Tax Revenue Creates Opportunities to Close Budget Gaps and Invest in Wisconsin’s Future
Wisconsin lawmakers received very welcome news today. The state budget balance is projected to improve by almost $912 million, thanks primarily to an increase of nearly $893 million in tax revenue above the previous estimate for the 2013-15 budget. However, the new Fiscal Bureau figures on the budget balance do not take into account a Medicaid shortfall currently estimated at $92.6 million.
The unexpected revenue gives lawmakers an excellent opportunity to invest in Wisconsin’s economic future and put the state on a sounder footing by filling budget holes. Elected officials should resist the temptation to make yet another round of tax cuts, which would do little or nothing to boost the state economy, and would miss the chance to create the foundation for widespread prosperity.