Thursday, October 16, 2008

Doyle Uses Wish List Numbers to Estimate Budget Deficit

Doyle is up to his old tricks

The governor’s $3 billion budget deficit is based on “funny numbers,” since they assume state agencies would get the 8% spending increase they originally requested, said Assembly Speaker Mike Huebsch (R-West Salem).

Assembly Majority Leader Jeff Fitzgerald (R-Horicon) said: “It is not surprising that the state budget is out of balance with the slowing economy. The surprising part is Gov. Doyle is using the inflated numbers of agency requests — a wish list of increases in spending.”

So when he says this…

The actual deficit figure could be more than $3 billion, but a more precise amount won’t be known until Nov. 20, when Budget Director Dave Schmiedicke must estimate future tax collections and how much spending state agencies request for 2009-’11. Agencies must submit budgets with the 10% cut on Nov. 17.

...what does it really mean?  10% cut of what - a cut in the the submitted budget requests or in the budget from last cycle?  For example, let’s say that an agency had a budget of $100 million last year.  The agency head submitted a budget request of $108 million.  Now Doyle wants him to “cut” 10%.  Does that mean that the agency head will cut 10% off of the $108 million figure, resulting in a request for $97.2 million (a scant 2.8% actual cut), or does the agency head take the 10% off of the $100 million figure, resulting in a request for $90 million.  If history is any guide, the answer is the former and the alleged proposed “cuts” are much smaller than Doyle is pretending them to be. 

 

(4) Comments
Posted by Owen at 1737 hrs
Politics + Politics - Wisconsin