Good economic news for state announced
Wisconsin got some good economic news yesterday. The state's budget deficits will be smaller than expected, as the result of new economic growth and an extension of tax cuts.
State officials say they'll collect $57-million more than their last projection for the current budget that runs until June 30th.
And tax collections will be $235-million higher than expected for the next two-year state budget period that begins July first.
Experts say the national economy will grow by three-percent next year, due mainly to the recent federal tax compromise. And John Koskinen of the state Revenue Department says it should also translate to a stronger state economy. He says projections for Wisconsin's personal income are also higher.
The news comes as Governor-elect Scott Walker tries to balance a current state budget that was $150-million in the red - and a budget for the next two years that was three-point-three billion in the hole. Cullen Werwie of Walker's transition team says more sustained economic growth will be needed to balance the budget, along with cuts in state spending.
Incoming GOP finance co-chair Robin Vos (R-Burlington) says yesterday's report might eliminate the need for a last-minute repair bill to balance the current budget - but that still remains to be seen.