State budget shows $759M surplus

In an annual report from the Wisconsin Department of Administration, the state showed a surplus for the budget ended in June of $759.2 million in its main account, $89 million more than the $670 million expected. As a result, the state’s rainy day fund received a $153.2 million boost, bringing the total to $278.5 million.

The news was expected to bolster a vote on a $100 million property tax cut proposed by Gov. Walker’s administration.

While the administration did not give a reason for the surplus, Senate Minority Leader Chris Larson (D-Milwaukee) stated in a release that it was due to “historic cuts to education and spending for Wisconsin’s children.”

Democrats also objected to the timing of the news, just days after former Trek Bicycle executive Mary Burke announced her decision to run against Walker in the 2014 elections. Still, the tax cut proposal (over the next two years) was expected to pass with bipartisan support.

Helping fuel the proposed $100 million property tax cut is Amazon.com’s plan to collect taxes on sales to Wisconsin residents beginning in November, a move that could generate an estimated $30 million in state revenue in the first year, according to the state Department of Revenue. Businesses are required to collect sales taxes from consumers if they have a physical presence in the state. Amazon is anticipating the opening of a large distribution center in Kenosha next year, which will employ more than 1,100 full-time workers.