Wis. agencies asked to prepare for more cuts
MADISON, Wis. — Concerns that the weak economy won't generate the tax revenue needed for state spending, Gov. Scott Walker's administration has asked state agencies to prepare for additional budget cuts over the next two years.
A recent letter from the Department of Administration told state agencies that $300 million in cuts is possible, a figure that includes $126 million more in possible reductions beyond what are included in the 2011-2013 state budget passed in June.
“Given the economic uncertainty this biennium, it is prudent to plan for a larger lapse. Consequently, I am requesting all agencies to plan for a larger lapse in the event that revenues are not as strong as assumed in the budget,” Secretary Mike Huebsch wrote in the letter to department heads. He urged them to minimize layoffs of employees and take advantage of high vacancy rates that exist in most state agencies.
The state budget was based on estimates done by the Legislature's nonpartisan budget office in May and assumed that tax collections will grow by 3 percent this fiscal year and 3.6 percent the following year. Since then, the economy has faced challenges, including the debt crisis in Europe and the debate in Congress over the federal debt limit.
The 2011-'13 state budget included $174.3 million in cuts with some exemptions, such as aid to local schools, health programs for the poor, technical colleges, child welfare programs, local prosecutors and financial aid for college students.
But that meant the remaining state programs had to take a larger share of the cuts, with the UW System losing an additional $65.6 million over two years, according to UW System spokesman David Giroux.
Although the UW System represents about 7 percent of the state's spending from its main account, it is being asked to absorb “a much larger share” of the cuts — nearly 38 percent, Giroux tells the Milwaukee Journal Sentinel (http://bit.ly/pDimFD ).
“It is hard to understand why the administration would choose to impose such a large cut on the UW System,” said UW-Stout Chancellor Charles W. Sorensen. “The governor has said repeatedly that he wants to help create good-paying jobs in Wisconsin, and public higher education has to be a key partner in that effort. But all we seem to get are cuts after cuts after cuts.”
Chris Schoenherr, the deputy Administration secretary, said state officials are being prudent in the face of weakening national economic forecasts. That will give agencies as much time as possible to plan for the additional cuts if they turn out to be needed, he said in an email.
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Information from: Milwaukee Journal Sentinel, http://www.jsonline.com