A new report on a projected state budget deficit indicates officials may have to cut spending by as much as $600 million over the next two years.
A day after Gov. Jim Doyle warned of a “very difficult fiscal situation” in his State of the State address, the nonpartisan Legislative Fiscal Bureau said that the budget is likely to be $300 million to $400 million in the red.
The bureau said Thursday the figures reflect “considerable weakness” in individual and corporate income tax and sales tax collections, which account for nearly all of the state’s $12 billion annual general fund budget. The bureau also cited economic forecasts that projected slower growth this year, reflecting the recent downturn in both U.S. and foreign markets.