State budget surplus projections dip, remain historically high 

Wisconsin’s budget forecast dipped slightly Monday, but the latest projection still calls for the state to collect about $6.9 billion more than anticipated by the end of June, the Associated Press reports.  

The projection from the nonpartisan Legislative Fiscal Bureau estimates that taxes collected over the next two years will be down about $755 million, or about 1%, from the forecast made four months ago. Taking into account other short-term cost savings, the surplus shrank from the $7.1 billion expected. The surplus is still more than the state has ever seen before. 

The new projection comes as lawmakers, Gov. Tony Evers, and others are trying to strike a deal on a new, multibillion-dollar aid plan for local governments ahead of a vote today in the state Assembly. 

Both Evers and Republicans have also proposed tax cuts that would cost billions of dollars, but they have yet to agree on what exactly to cut and by how much. 

The new forecast also comes ahead of votes in coming weeks over tax cuts, funding for K–12 schools and the UW System, and a host of other priorities for next two-year state budget. 

Budget negotiations have been ongoing behind closed doors. The Legislature’s budget-writing committee is meeting this month to take votes on the next spending plan, which will likely be passed in late June or early July.