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Current budget plan would raise local property taxes; could lead to shortfall

MADISON, WI (WTAQ) - The current version of the new state budget would raise local property taxes by one percent in each of the next two years for the average Wisconsin homeowner.

The non-partisan Legislative Fiscal Bureau said Governor Scott Walker’s original budget would have raised local taxes by $19 over the next two years. That’s now $58, after the Joint Finance Committee increased the proposed level of spending.

The fiscal bureau also said the current budget pushes $505 million of state spending into the next budget period starting in 2015. And if nothing’s done before then, the governor and lawmakers would be left to fix that shortfall two years from now.

The Fiscal Bureau’s projections do not include possible gains or losses in tax revenues due to economic trends – and it does not reflect such extra expenses as pay raises for state workers.

The numbers do include the changes to the budget made by the Joint Finance Committee.

Among other things, the panel doubled Governor Scott Walker’s proposed income tax cut, created a tax deduction for private school parents, added spending for school vouchers, and increased state aid for public schools.