Doyle to Agencies: Hold the Line on Spending in 2011-13; Prepare for 10% Reductions

Gov. Doyle told state agencies Tuesday not to plan on any new spending in the 2011-13 budget and to prepare plans to absorb “at least” a 10% permanent base cut of all non-FED sum certain appropriations. “By staying the course on spending restraint, my successor and the next Legislature should be able to focus on identifying ways to address key priorities in the next State Budget and grow Wisconsin’s economy,” Doyle said in a cover letter on the DOA’s Major Budget Policies 2011-13.

“Budget Targets” suggest agencies “should assume there will be zero growth in overall GPR appropriations in each fiscal year” in the next biennium, “and specific program needs should be managed within this general constraint.” Exceptions will occur only for K-12 school aids; required basic cost-to-continue needs for the state’s institutions (Dept of Corrections and Dept of Health Services); entitlement and related assistance programs in the Dept of Health Services (Medical Assistance); the Dept of Children and Families’ Division of Safety and Permanence; and the Dept of Workforce Development’s Division of Vocational Rehabilitation; the UW System instruction and research activities focused on economic growth; and, housekeeping adjustments like standard budget adjustments, fuel and utilities, and debt service.

The zero-growth policy will also apply to SEG-funded administrative operations appropriations in all agencies supported by the Transportation Fund, the Conservation Fund, the Environmental Fund and Lottery Fund.

Funding requests for other types of appropriations and other funding sources in both years are to be limited to revenue availability and “only the highest priority programmatic needs.” Except for standard budget adjustments, routine budget items should be handled in agencies’ base budgets regardless of fund source.

Act 28 authorized the DOA to lapse or transfer $641 million in the 2009-11 biennium. The directive said these reductions “will need to continue in the 2011-13 biennium.”

Agency budget requests are due by September 15. Reduced base budget plans are due Nov. 8.