In yet another example of how Gov. Scott Walker wants to kick the can down the road when it comes to Wisconsin’s finances, the Walker administration announced their plan to delay repayment of state debt in order to balance the state’s budget deficit.

The Walker administration plans to delay the repayment of state debt to balance the budget, a move that will lead to higher interest costs for state government down the road.

Walker has been quiet about how he plans to fill a shortfall in the budget that ends June 30, saying he believes his administration can handle it internally. A memo from the nonpartisan Legislative Fiscal Bureau shows that part of the way the governor would do that is by delaying the repayment of $108 million in state debt this fiscal year.

According to the nonpartisan Legislative Fiscal Bureau, Gov. Walker’s decision to delay repayment of state debt will cost the state at least $1.1 million in extra interest payments in the next budget alone, with the total amount of the extra interest payments after that yet to be determined.

In other words, Gov. Scott Walker wants taxpayers to pay more out of their pockets down the road simply so he can avoid making tough decisions on how to balance the budget deficit he created.

4 Responses to Gov. Walker to balance state budget deficit by delaying debt repayment

  1. Jake formerly of the LP says:

    Actually Zach, the amount to be paid in the next budget is $19 million, not $1.1 million. And $90 million + after that, to make up for the $108 mil we aren’t paying in May.

  2. Jake formerly of the LP says:

    Zach- It’s not $1.1 million in the next budget- it’s $19 million. And $90 million or more in the years after that. All to avoid having to do a small budget repair bill for this year.

    And it’s very possible they’ll have to do a repair bill anyway, if revenues stay on the low trend we’ve had.

  3. John Casper says:

    Sarcasm

    “It’s ok if you’re a Republican.”

    /sarcasm

  4. Jerry says:

    Walker will have now refused to pay $643 million in debt as it came due since taking office. Walker’s 3 budgets will now have included $5 billion in new borrowing. In the near future Wisconsin’s tax revenues will need 28 cents of every dollar to go to pay debt. Unless Walker and Republicans are stopped they will be successful in strangling our government with so much debt that our needed services will be shrunk to nothing. This undoubtedly is the plan and Walker will leave for greener pastures at the Heritage Foundation or some other Tea party conservative policy operation and Wisconsin will be left in financial, shambles including our education system and our environment!

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