Wisconsin Budget Forecast Improves By $138M

Wisconsin’s state budget is now projected to end with $138 million more than previously thought when it cleared the Legislature last year.

The nonpartisan Legislative Fiscal Bureau on Wednesday said the current two-year budget that ends June 30, 2019, will end with a $385 million balance.

Republican co-chairs of the Legislature’s budget committee Sen. Alberta Darling, of River Hills, and Rep. John Nygren, of Marinette, heralded the news. They say it shows “common sense reforms and prudent fiscal budgeting have put us on great fiscal standing.”

According to the bureau, the higher forecast was largely the result of $76 million more in estimated tax collections, a nearly $98 million drop in spending caused mostly by re-estimates of debt payments and a $38 million fund transfer.

The bureau’s projection comes on the heels of a memo released Tuesday, citing the total state and local spending for bringing Foxconn’s LCD screen factory in Racine County could reach $4.5 billion. That’s up from the state’s original $3 billion commitment.

Democrats who requested the estimate have been critical of the incentives offered to the Taiwanese-based company.

While touting a new workforce development plan at Milwaukee Area Technical College on Wednesday, Walker defended the Foxconn project, arguing such job-creating projects require public investment and have garnered Democratic support in the past.

Walker said the difference with the Foxconn project compared to others is that it’s an election year.

“Unfortunately, some chose to make it political. But the bottom line is it’s good paying, family-supporting jobs,” Walker said of Foxconn. “We’ve heard in our tour today that there’s going to be a lot of scaling up to meet the high demand. There’s going to be a lot of people working, a lot of people supplying.”

Editor’s Note: This story was last updated at 5:20 p.m. Wednesday, Jan. 17, 2018, with comments from Walker.