J.E.D
Gold Member
- Jul 28, 2011
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WI Gov Walker and AG Van Hollen want to use WI's share of the recent foreclosure settlement to help close the state's budget shortfall that Walker claims does not exist. I'm sure struggling WI homeowners will be pleased.
http://www.dane101.com/current/2012...nal_foreclosure_settlement_money_in_wisconsin
Last week Gov. Scott Walker and Attorney General J.B. Van Hollen announced that a chunk of the state's $140 million share of a national settlement over bank abuses of foreclosure and mortgage-servicing would go toward plugging the projected $143 million budget shortfall.
The state government will receive a direct payment of $31.6 million out of its total share, $25.6 million of which has been earmarked to help plug the budget hole. Van Hollen says his office has legal authority over the money and can make decisions about where and how to use it.
Using the cash accounting practices relied upon by every prior administration Walker was able to eliminate the state's structural deficit, but still left the aforementioned budget shortfall of $143 million by the end of the two year budget in July 2013. That's enough to require the Legislature take action, though Walker has stated he will not use an emergency budget repair bill to address the problem.
Using generally accepted accounting principals, which Walker promised to do in his campaign but then did not follow through on, Wisconsin faces a much larger budget shortfall in the coming years: $2.99 billion for 2011-12, and $3.02 billion for 2012-13.