Wisconsin is not alone. Nearly all States within the Union face a similar situation of rising budget deficits. Balancing budgets through a combination of layoffs, spending cuts, and increased taxation without a recovery in the private sector will only worse the problem. Another round of debt based stimulus under the policy of quantitative easing will be pursued once it becomes politically viable.
Bob Lang, director of the Legislative Fiscal Bureau, said the general fund will be an estimated $2.51 billion short of the revenue needed to meet current spending commitments.
That means the next governor and Legislature will be required to make deep spending and service cuts, pass fee and tax increases or do a combination of the two to balance the budget.
Source:
todaystmj4.com
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