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.
Brennan wrote that these cuts to general purpose revenue appropriations in 2019-20 will provide an “additional cushion until the revenue picture for the biennium becomes clearer.”
As summarized by WisPolitics.com this morning:
“In January, the Legislative Fiscal Bureau projected the state would finish 2019-20 with nearly $1.1 billion in the general fund on its way to completing the biennium with a surplus of $620.2 million.
“But in mid-April, the Evers administration projected state revenues would drop by some $2 billion in the coming year, due to the pandemic. That estimate, in a letter to the Trump administration, didn’t include additional detail of how that lost revenue would impact each year of the 2019-21 budget.
“Last week, the office of Joint Finance Co-chair John Nygren (R-Marinette) shared with WisPolitics.com its projection that the state would receive about $3.5 billion from the federal government to deal with COVID-19. The projection includes money for state and local governments to help cover COVID-19 related expenses ranging from health care costs to transit.
“But that money comes with restrictions on how it can be used. Secretary Brennan referenced the federal aid in his email, but pointed out it can’t offset lost revenue.”
Read Secretary Brennan’s full email:
https://www.wispolitics.com/2020/brennan-email/
