- Associated Press - Tuesday, July 11, 2017

MADISON, Wis. (AP) - The Latest on Wisconsin state budget (all times local):

3:10 p.m.

Wisconsin legislative leaders say they aren’t worried about a $51 million hit to the state budget caused by fallout from income tax increases in Illinois.

Sen. Alberta Darling and Rep. John Nygren are co-chairs of the Legislature’s budget-writing Joint Finance Committee. They said Tuesday they expect the loss to Wisconsin to be temporary “as more and more companies are taxed out of Illinois.”

And Assembly Majority Leader Jim Steineke says, “We’ll make that up thanks to the influx of businesses and people moving” from Illinois to Wisconsin.

The estimated loss is caused by increased payments the state will have to make to Illinois under an income tax reciprocity deal and higher tax credits people who live in Wisconsin but work in Illinois will claim.


12:15 p.m.

Assembly Speaker Robin Vos says reaching a deal on a Wisconsin state budget impasse is about more than just lowering the amount of borrowing.

Vos said Tuesday that the position of Assembly Republicans calling for revenue increases to pay for borrowing remains unchanged. He spoke after Senate Majority Leader Scott Fitzgerald said GOP senators were working to reduce borrowing below $750 million.

But Vos says without a way to pay for whatever borrowing is proposed, Assembly Republicans will not support the plan. He says the simplest solution would be to have a “little bit” of borrowing with a “little bit” of tax or fee increases to pay for it.

The dispute over how to plug a nearly $1 billion road-funding gap is holding up passage of the entire Wisconsin state budget.


11:50 a.m.

Newly approved tax increases in Illinois will result in a nearly $51 million hit to the Wisconsin state budget.

That’s the conclusion in a memo by Wisconsin’s nonpartisan Legislative Fiscal Bureau released to members of the Legislature’s budget committee on Tuesday.

Wisconsin is adversely affected by the $5 billion in tax increases approved in Illinois because of an income tax reciprocity agreement and higher income tax credits that Wisconsin residents will be able to claim.

The Fiscal Bureau says that payment combined with the higher credits will result in Wisconsin owing Illinois $51 million more over the next two years.

The bad news comes as Republicans who control the Wisconsin Legislature continue to struggle to reach a deal on a new two-year budget.


10:27 a.m.

Republicans who control the Wisconsin state Senate are working on a transportation funding plan that would borrow less as they try to strike a deal to end a budget impasse.

Senate Majority Leader Scott Fitzgerald said Tuesday that Republicans were “whittling down” the level of borrowing from the $750 million they had discussed last week. Fitzgerald says he hopes for the Senate to come up with a road-funding proposal to get present to Assembly Republicans for their response.

Assembly Republicans have pushed for less borrowing and revenue increases to help plug a nearly $1 billion transportation funding gap.

Wisconsin is one of three states that has yet to pass a budget. It was due on July 1, but current funding continues during the impasse.

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