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State expects small budget surplus


MADISON (WSAU)  The current state budget could have a $274-million surplus when it expires next June.

The Legislative Fiscal Bureau said yesterday that higher-than-expected tax collections will create the surplus – but only if state spending is on track. We may not know until mid-October whether state spending was held to its budgeted limits for the fiscal year ending June 30th. The Administration Department will release its annual fiscal report by October 15th.

Revenue officials said yesterday that the state took in $126-million more than it expected in general purpose revenues in the last fiscal year. Half that increase goes to the state’s Rainy Day Fund to handle future emergencies. The Fiscal Bureau says the fund now has just over $125-million.

Administration Secretary Mike Huebsch said the state government is clearly headed in the right direction after several years of record budget deficits. Democrats were more cautious. They said state spending trends remain uncertain, and Wisconsin still has a large deficit for Medicaid health care programs.