MADISON, WI (WTAQ) - Governor Scott Walker’s administration says the current two-year state budget is expected to end with a $342 million surplus next June 30th.

But for the next budget, state agencies have asked for $171 million more than the funding that’s expected to be available.

The figures were included in a legally required memo to the Republican governor and lawmakers in both houses.

The Administration Department says the projected surplus in the current budget does not include $125 million which is in the state’s rainy day fund. And Administration Secretary Mike Huebsch said there’s no need to pass an emergency package of spending cuts in the first part of next year.

Officials said state revenues are projected to increase by 3.8 percent in the first year of the next budget, which ends in June of 2014 – and revenues are expected to jump another 3.5 percent in the budget’s second year.

The Republican Walker will submit his budget to lawmakers in February. They’ll have more than four months to pass it.

Walker has talked about the possibility of an income tax cut, tying state school aid to student performance, and ending the state’s same-day voter registration system.

Democrats have suggested more funding to schools instead of a tax cut.