State Senator Mary Lazich (R-New Berlin) represents parts of four counties: Milwaukee, Waukesha, Racine, and Walworth. Her Senate District 28 includes New Berlin, Franklin, Greendale, Hales Corners, Muskego, Waterford, Big Bend, the town of Vernon and parts of Greenfield, East Troy, and Mukwonago. Senator Lazich has been in the Legislature for more than a decade. She considers herself a tireless crusader for lower taxes, reduced spending and smaller government.
More stunning news from the nonpartisan Legislative Fiscal Bureau (LFB) about the state of our economy. I received an LFB memo today about the condition of the state’s general fund for the 2009-11 and 2011-13 biennia. The general fund is the amount of income tax, sales tax, and corporate tax revenue the state receives.
The LFB grimly notes that the structural deficit for the 2011-13 biennium will be $2.511 billion. The structural deficit is the gap between the state’s ongoing spending commitments and its projected income. The LFB memo includes, “For 2011-12, the general fund would need to generate $1,232 million in order to meet current commitments, maintain the required statutory balance, and balance the budget for that year. In 2012-13, $1,279 million would need to be realized. “
The total structural deficit for the next biennium would be $2.511 billion.
The memo also indicates the state has a gross balance for 2010-11 of $45 million. However, the required statutory balance of $65 million makes the net balance as of June 30, 2010 to be a negative $20 million.
The LFB uses the word, “commitments.” I have written that through irresponsible budgeting the state has made too many promises in the form of too many social programs that it cannot afford.
You can read the LFB memo here.