Sunday, February 12, 2012

Walker budget: smoke and mirrors fail.

Based on our analysis, we project the closing, gross general fund balance at the end of this
biennium to be -$143.2 million. This is $215.9 million below the $72.7 million balance that was
projected at the time of preparation of the last general fund condition statement on October 17,
2011. The $215.9 million is the net result of: (1) a revenue decrease of $4.5 million due to
enactment of 2011 Act 49; (2) a $272.8 million decrease in estimated tax collections; (3) a $6.3
million decrease in departmental revenues; (4) a $44.5 million decrease in sum sufficient
appropriation expenditures; (5) a reduction of $20.0 million in compensation reserves; (6) a
reduction of $1.3 million in the transfer to the injured patients and families compensation fund;
and (7) a $1.9 million increase in estimated lapses to the general fund.

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