Wisconsin

Budget estimates are prepared by departments and sent to the governor or governor-elect in the fall of each even-numbered year; the following January, the governor presents a biennial budget to the legislature, which passes a budget bill, often after many amendments. Most appropriations are made separately for each year of the biennium. The fiscal year begins 1 July. Expenditures by state and local governments alike have risen dramatically since 1960. At one time, the state was constitutionally prohibited from borrowing money; this provision was at first circumvented by the use of private corporations and then, in 1969, eliminated by constitutional amendment. As of 1995, state indebtedness exceeded $8.2 billion. As of 2000, the state was required to maintain a budget balance equal to 1% of gross appropriations and the compensation reserve each year. The governor proposed raising the percentage to 1.1% for 2000/01, and 2% over the following five years.

The Wisconsin budget for 2000/01 was set at approximately $22 billion. General purpose revenue made up about 53% of total revenues, federal revenue 24%, program revenue 13%, and segregated revenue 10%. General purpose revenue went to primary and secondary education (39%), tax relief (10%), medical assistance (9%), the UW system (8%), correctional services (7%), and tax credits (6%). About 60% of general purpose revenue went to local assistant programs, 16% to individuals, 15% to state agencies, and 9% to the University of Wisconsin.

In 2001/02, revenue shortfalls and increased expenses let to total cuts in Wisconsin's biennial budget of $324.4 million. Across-the-board cuts were mandated, state employees were laid off and the state raised funds through by securing future tobacco settlement proceeds. Revenue shortfalls in 2002/03 led to $89.6 million in cuts in the budget after it was enacted, including further layoffs and across-the-board cuts. As a percent of expenditures, the state's starting balance dropped from 1.9% of expenditures in 2000/01, to 0.5% in 2001/02, to –2.6% in 2002/03. The state's starting balance for 2003/04 was 0.4% of projected expenditures. Allocations by purpose in 2003/04 were 58% for local assistance, 20% for aid to individuals, 8% for state universities, 6% for corrections, and 8% for other state operations.

The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.