The Legislative Fiscal Bureau on Monday reported state tax collections totaled more than $17.5 billion in the 2019-20 fiscal year, a 1.1% increase from the previous year. That’s about $112.6 million, or only 0.6%, less than projected in January, according to the state Department of Revenue.
A final report released in October will include expenditures and revenues, but Lang said he doesn’t anticipate any major changes and the state will likely end the fiscal year with “a relatively large balance.”
This is good news, but it is not the whole story. The budget impacts will be felt for some time.
“I would say that while all this is good news, it doesn’t mean that there aren’t tough days ahead,” Nygren said. “If you don’t do additional reductions between now and the end of this second year of the budget, all the negative impacts will fall into the next budget. … My opinion is it’s better to make those tough decisions now.”
The full impact of COVID-19 remains to be seen in Wisconsin, including on businesses and individuals drawing unemployment. Last week, the Department of Workforce Development reported nearly 500,000 claimants have been paid more than $3.5 billion in unemployment benefits since March 15.