Finally, a professional speaks:
Daily Kos: A Primer on the Wisconsin State Budget Process
To summarize: Wisconsin doesn’t yet HAVE a 2011-2013 budget, because the governor hasn’t yet assembled one. Not having a budget means you can’t have either a surplus or a deficit. The $3-4 billion “deficit” you hear about is almost entirely accounted for by the COMPLETELY TENTATIVE AND UNAPPROVED initiatives (the Y factor) from the state agencies, most of which will quickly fall like overripe apples in November. And this state of affairs is COMPLETELY NORMAL for this time frame in an odd-numbered year.
Again, in simpler language: Wisconsin isn't broke. The Governor is broken.