Jason Stein:

The state’s projected two-year budget shortfall has doubled to a hefty $652.3 million, the Legislature’s budget office reported today.
The potential deficit, up from last month’s estimates of $300 million to $400 million, represents a much greater challenge for lawmakers and Gov. Jim Doyle as they attempt to balance the state’s books in the face of a looming national recession and falling state tax revenues.
The red splashed across the state’s books also increases the chance that officials might have to cut programs, raise taxes or raid other state funds to cover the shortfall.
The state’s January 2008 report on tax collections — which includes key sales from the holiday retail season — and the forecasts for this month point to “further weakness” in tax revenues, the report from the Legislative Fiscal Bureau found.
That means a $586.5 million projected decrease in state collections and a $34.9 million decrease in interest income and other revenue to state agencies, the report found.

2008_02_13_Revenue estimates.pdf 84KThese deficits, along with a number of other issues, make it unlikely that we’ll see meaningful new state redistributed tax dollars for the Madison School District. Wisconsin Legislative Fiscal Bureau’s website.
Greg Bump has more.