The Legislative Fiscal Bureau next week will release figures that could show a state shortfall of up to $1.5 billion, added to the already-announced $5 billion state budget deficit.
As a result, all state of Wisconsin employees, including those in the governor's office will be subject to furloughs of 8 days per year in 2009 and 2010.
Cuts on state government spending will reach at least 5 percent, Gov. Jim Doyle said, and all agencies have been directed to review service contracts to reduce personnel costs.
"What we all know is that reckless behavior on Wall Street – behavior that we've never embraced in Wisconsin – continues its negative effects through our state, our nation and now, the world," Governor Doyle said. "Everyone is paying the price and suffering on some level. Here in Wisconsin we are facing tougher choices than ever about what level of state services we can sustain at a time when people need them most."
Gov. Jim Doyle announced that he will return pay for eight days to the state. According to Doyle, his office will not propose new taxes, and his budget already freezes pay and requires state employees to contribute more to retirement and health insurance. His decision also halted a two percent pay increases scheduled to be implemented in June.
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