How did the state budget end up in shambles? Governor Doyle and supportive legislators lay the budgetary imbalance at the feet of the poor economy. State Senator Bob Jauch went so far as to call the budget shortfall "a natural disaster," saying it was a "Katrina-style collapse."
Yet despite these declarations that the budget shortfall is outside the control of Wisconsin's elected officials, several questionable budget practices allow Wisconsin to continually spend more than it takes in. First, the state has been filling budget holes in the general fund by pouring in one-time revenues from segregated state accounts, paid for with various user fees. According to state government's own financial records, from fiscal years 2001 through 2008, a total of $2.373 billion of these one time, non-routine, revenues was used to help the general fund show positive ending balances. Much of this came from the transportation fund, which was then made whole by issuing debt to backfill the hole left by the transfer.
With regard to the spending side of the ledger, the state can appear to spend less from the general fund by "offloading" spending to accounts funded with user fees. For instance, in the 2003-05 budget, $100 million was shifted out of the transportation fund and into the school aids equalization formula ($40 million in 2004 and $60 million in 2005). By replacing $100 million of spending previously paid from general purpose revenue with segregated transportation funds, the Governor and Legislature sought to create the appearance that general fund spending was being held in check.
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