State government faces a long-term imbalance between spending commitments and tax collections of almost $1.7 billion - even if the budget-repair bill that passed the Senate on Tuesday becomes law.
That figure is $800 million more than last fall, when the budget was adopted.
The Legislative Fiscal Bureau blamed the higher long-term deficit on the sluggish economy, because tax collections are expected to grow by only 2% - less than half the 5.5% annual growth in the past. Every 1% lag in tax collections means state government collects $130 million less in taxes.
Fiscal Bureau Director Bob Lang gave legislators the $1.7 billion estimate of the so-called "structural deficit," which is the projected shortfall Gov. Jim Doyle and legislators face next year when they must pass the 2009-'11 budget.
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