Faced with a $3.6 billion deficit, Walker proposes his first State budget promising to fill in the gap without raising taxes. His budget reduces spending by $4.2 billion cutting more than $1.25 billion in aid to schools and local governments. He emphasizes that if the legislature passes his budget repair bill, then the aid will not be missed because governments will be able to cut contributions to employees’ health and pension plans. He is also cutting $500 million from Medicaid, $250 million from higher education, and eliminating 21,325 full-time state jobs.
We need a leaner and cleaner state government. As we decrease spending, we also increase flexibility so local government and state government have the tools to deal with reduced revenue.