Wisconsin Sees $870 Million Drop in Tax Collections Last Month
Thursday, May 7th, 2020 -- 10:08 AM
(AP) -New budget figures for Wisconsin released Wednesday show an $870 million drop off in tax collections last month, the latest stark sign of how much the coronavirus pandemic is hurting the state’s economy.The bleak but expected budget figures came as pressure continued to build on Democratic Gov. Tony Evers to reopen business in the state faster and loosen his “safer at home” order that runs until May 26. The nonpartisan Legislative Fiscal Bureau told lawmakers that state tax collections were down $870 million in April, the first full month of the stay-at-home order, compared to April 2019. Tax collections were down $313 million between July and April compared to the same 10-month period the previous fiscal year.
Evers has projected a $2 billion loss over the current budget that runs through June 2021. The memo said several variables could help the state’s budget in the coming months, including Evers’ order to cut spending 5%, expected to save $70 million. Some of the $2 billion in federal aid could go toward the budget shortfall, and the state has about $844 million in savings that could be used, the memo said.
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