Shell Game Continues, Deficit Forecast Grows State to be $386 Million in Red in December
By MacIver Institute - September 17, 2010
MacIver News Service | September 17, 2010 2:00pm
[Madison, Wisc…] The State of Wisconsin's money management woes continue. Governor Jim Doyle's Administration secretary has announced the repeated shuffle monies in order to meet continuing obligations.
Further, the Doyle Administration's new forecast warns that during the month of December, the state's General Fund may be more than $386 million in the red, a gap that is $125 million more than previously forecast.
The Department of Administration released the forecast, and information regarding the fund balance transfers in memos to the Joint Committee on Finance Co-Chairs Senator Mark Miller Representative Mark Pocan.
Regarding the fund transfers:
On July 26, 2010, the General Fund cash balance closed at a negative $123.0 million (its intra-month low). This negative balance continued through July 31, 2010, when the fund's cash balance closed at a negative $84.4 million. The negative balance was due to the difference in the timing of revenues and expenditures.
One July 1, 2010, the Medical Assistance Trust Fund cash balance closed at a negative $253.1 million. (its intra-month low) This negative balance continued through July 29, 2010, when the fund's cash balance closed at a positive $4.2 million. The Medical Assistance Trust Fund cash balance reached its intra-month low of a negative $299.2 million on June 4, 2010. The negative balance was due to the difference in the timing of revenue and expenditures.
On July 1, 2010, the Police and Fire Protection Fund cash balance closed at a negative $5.0 million (its intra-month low). This negative balance continued through July 31, 2010, when the fund's cash balance closed at a negative $1.0 million. The negative balance was due to the difference in the timing of revenues and expenditures.
On July 1, 2010, the Environmental Fund cash balance closed at a negative $10.7 million. This negative balance continued through July 31, 2010, when the fund's cash balance closed at a negative $10.6 million. The negative balance was due to the difference in the timing of revenues and expenditures. The Environmental Fund cash balance reached its intra-month low of a negative $13.0 million on July 22, 2010
In a separate memo from the Department to the Finance co-Chairs, DOA Secretary Dan Schooff projected the state's General Fund will face a deficit as vast as $386.3 million during the month of December. That is up from the previously forecast deficit of $261.6 million in December, which was issued just last month.
MacIver News will update this story, and provide reaction, as it develops.