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General Fund Would See $1.4 Billion Less Under JFC Motion

By John Forester | May 7, 2019

From WisPolitics.com …

The first motion the Joint Finance Committee plans to take up Thursday would result in the general fund seeing $1.4 billion less over the next two years than what Gov. Tony Evers proposed, according to an analysis by the Legislative Fiscal Bureau.

What’s more, the motion, which includes rejecting Evers’ call to expand Medicaid, would mean nearly $1.1 billion less in federal aid for the 2019-21 budget.

The committee co-chairs last week laid out a proposal to eliminate 131 items Evers included in his budget. While it included some 70 policy items, the planned motion also includes a series of fiscal items, including some tax hikes.

The biggest fiscal impact would be wiping out the Medicaid expansion, which would draw nearly $1.1 billion in federal money. It also would result in the state spending $324.5 million more in general purpose revenue over the next two years than it would’ve under Evers’ plan.

Meanwhile, Republicans are planning to toss Evers’ proposal to cap a tax credit for manufacturers, which would’ve generated $516.6 million for the general fund over the next two years. He also wants to limit the exclusion for nonfarm capital gains, which would’ve generated $505.1 million. But the committee plans to nix that as well.

Other big-ticket items include keeping a transfer to the transportation fund from the general fund. That carries an $87.8 million price tag.

The LFB memo only summarizes the fiscal impact of the motion compared to Evers’ proposal, not current law. For example, in January, the LFB projected the state would have an additional $2.4 billion in GPR to spend through mid-2021.

The offices of the JFC co-chairs didn’t immediately respond to a request for comment. An Evers spokeswoman said the administration was still studying the memo.

See the summary of the fiscal impact of the motion starting on page nine.

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