MADISON, Wis. (AP) — Tax collections in Wisconsin are projected to drop by another $220 million, but it won’t be enough to force lawmakers to take additional action to balance the state budget.
The nonpartisan Legislative Fiscal Bureau reported the new figures Wednesday and Democratic leaders say they’re close enough to being on target that they won’t need to reopen the budget.
The Fiscal Bureau analysis blames the decrease primarily on a $92 million drop in cigarette tax revenue and the loss of $92 million due to ending an income tax reciprocity agreement with Minnesota.
Gov. Jim Doyle has said he intends to cut up to $200 million from the budget, but he hopes to avoid lay offs and also protect priorities like education and health care.