Jason Stein:

The state’s yawning budget hole has swelled to $2.5 billion, underscoring the massive challenge that awaits the next governor and Legislature, a new report shows.
The projections by the Legislature’s non-partisan budget office show the expected shortfall for the 2011-2013 budget has grown by $462 million from the just over $2 billion that was expected a year ago.

The Madison School District released a memorandum on expected redistributed state tax dollars last week 119K PDF. Superintendent Dan Nerad:

As you can see over the past five years, equalization aid for MMSD has been slightly erratic, increasing for two years and then decreasing drastically over the past 2 years as the State of Wisconsin removed $147 million of funding from the equalization aid formula.
The 2009-10 school year was the first time over the last 10 years that MMSD saw a maximum decrease in funding from the State of Wisconsin, which statutorily is set at 15%, For MMSD this was a decrease in the State’s connnitment to public education in Madison of over $9.2 million when compared with funds received in 2008-09.
When planning for the 20I0-11 school year budget, Administration openly planned for another reduction in equalization aid funding of 15% or approximately $7.8 million. The early aid estimate that was released on July I, 2010 shows MMSD in a better situation than was first projected through the budget process for one reason. The breakdown ofequalization aid for MMSD in 2010-11 as projected by the DPI is as follows:

John Schmid: Study says state is a ‘C’ student