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Doyle calls special session to address budget shortfall
Small Business Times, March 5, 2008
Gov. Jim Doyle today called for a special session of the Wisconsin State Legislature to meet on Thursday, March 13, at 10 a.m. to repair a severe state budget imbalance.
Doyle said the crisis was caused caused by revenues that declined with a slowing national economy.
"I am working closely with and calling on legislative leaders to reach an agreement and quickly address the budget gap the state of Wisconsin is facing," Doyle said. "The budget imbalance has serious consequences if left unresolved. It is imperative that we find a responsible solution that protects our basic values, continues vital services, and maintains our financial integrity."
Doyle called the special session in response to a notification today from the Department of Administration that expenditures would exceed revenues by more than 0.5 percent this year. The situation requires legislation to repair the budget, Doyle said.
Department of Administration Secretary Mike Morgan today issued a letter certifying the state revenue shortfall.
Despite administrative cuts of more than $125 million, Morgan said state expenditures will exceed revenues by nearly $77 million in the 2007-08 fiscal year and nearly $351 million in 2008-09.
"Failing to quickly address this spending imbalance will have severe consequences for the state's fiscal health," Morgan wrote.
"This spending imbalance may also seriously affect the state's ability to secure short- and long-term debt," Morgan stated. "Issuance of operating notes that may be required in the next fiscal year will not be possible until this imbalance is corrected."