In an earlier blog post, we reported on steps outlined by Wisconsin’s Department of Administration Secretary to reduce expenditures by executive branch agencies in the current fiscal year (2019-20) to better position the state financially for an unknown future. In his email, Secretary Brennan acknowledged that “current economic indicators signal a national recession and weakness in state tax collections.”

When similar steps to curb state expenditures have been taken in the past, they have often been followed by a determination by the DOA Secretary that a revenue shortfall is to take place. Once the Secretary has reached that determination and the conditions of s. 16.50(7) of the Wis. Statutes are met—i.e., that  previously authorized expenditures will exceed revenues in the current or forthcoming fiscal year by more than one-half of one percent of the estimated general purpose revenue appropriations for that fiscal year—the Secretary has the responsibility under s. 16.50(7)(a), Stats., to immediately notify the Governor, the presiding officer of each house of the Legislature, and the Joint Committee on Finance of that determination. (more…)

Late yesterday, Wisconsin Department of Administration Secretary Joel Brennan emailed state employees updating them about steps the administration is taking to offset revenue losses caused by the COVID-19 pandemic.

The biggest step is to immediately implement a 5% reduction to state operations GPR appropriations in executive branch agencies for the current 2019-20 fiscal year.

Other steps being taking include:

• Restricting all state-sponsored out-of-state travel unless deemed to be essential for COVID-19 response.
• Maintaining a hiring freeze, with exceptions for COVID-19 related positions and those deemed essential for continuing business functions.
• Suspending the Discretionary Merit Compensation Program.
• Restricting the Discretionary Equity and Retention Award Program for the remainder of the year.

(more…)

The Milwaukee Journal Sentinel is reporting that state legislation being drafted by majority GOP lawmakers would include a provision giving the Joint Finance Committee unilateral authority to cut state spending, including funding to schools, in response to the COVID-19 pandemic and the impact it could have on the State’s coffers. 

“The new measure is aimed at responding to the coronavirus outbreak and the economic problems that come with it. The legislation would suspend a one-week waiting period to receive unemployment benefits, and allow the state to claim an extra $150 million every three months in federal aid for the state’s Medicaid programs such as BadgerCare Plus.  

“But the legislation also includes a provision that would allow the Legislature’s GOP-controlled Joint Finance Committee to reduce state spending — including aid to schools — on its own. Normally, the Legislature and governor have to agree on any cuts. (more…)