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Madison – Yesterday Governor Walker’s office kicked off a series aimed at highlighting what policies will not be contained in his budget proposals.  The policies highlighted in this series were implemented in the past and led to the current $3.6 billion budget deficit. 

Governor Walker’s budget proposals will not raid segregated funds (SEG).  Below is a partial list of SEG raids executed in the past:

  • Transportation Fund—$1.3 billion raided
  • Agricultural Chemical Cleanup Program—$7 million raided
  • Injured Patients and Families Compensation Fund—$200 million raided

Section 20.001(2)(d) of Wisconsin State Statute provides a very specific definition of SEG funds—they “consist of revenues which, by law, are deposited into funds other than the general fund and are available for the purposes for which such funds are created.”

For instance, the Transportation Fund receives revenue from the gas tax and vehicle registration fees and its expenditures are intended to go to transportation related projects such as highway expansion, aid to local governments for roadway maintenance, and funding for public transportation.  Unfortunately in past budgets, revenues collected for SEG funds have been transferred into the General Fund or “raided” to pay for other, unrelated state expenditures.

“The era of robbing Peter to pay Paul is over,” said Governor Walker. “While tough budget challenges lie ahead, rather than raiding segregated funds, I plan to introduce honest budgets that reform the way core government services are delivered to make state operations more efficient, cost effective and fair to taxpayers.”

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