Higher utilization, greater intensity of services and provider cost increases all need to be addressed in the budget. On November 20, the Department of Administration published its summary of agency budget requests and the DOR revenue estimates. This projected deficit has been eliminated due to revisions in revenue and spending estimates since November, by conscious efforts to limit state spending and by utilizing alternative sources of revenue that have become available to the state. The national and state economies continue to perform beyond expectations. The tobacco litigation settlement reached with several major tobacco companies contains a schedule of payments to states that are parties to the agreement.
Annual payments are to be ongoing under the agreement, with no ending date specified.
The tobacco settlement funds will help the state fund the costs of new or expanded health initiatives and several smoking prevention initiatives. These funds will be used for a variety of new or existing programs, often in lieu of new GPR, to benefit the tribes, adjacent communities and all residents of Wisconsin. Other savings have been achieved by denying or paring back GPR budget requests. Most agencies received either reductions from base, no increases or increases of less than one percent in their funding compared to current levels. In addition, new GPR has not been provided for certain programs whose funding sources have previously been reduced or repealed by the Legislature.