Notes from the West Wing

By State Representative Garey Bies

The Budget Process

             For this edition of Notes from the West Wing, I want to talk a little bit about the budget process in Wisconsin.  In theory, the Wisconsin budgetary process is pretty straightforward.  Of course we are all aware that something that seems simple can end up being just the opposite!  And that is often the case with the state budget!  It is the single largest and most important piece of legislation we as lawmakers consider each session, and everybody wants to have input.  Because of its importance, the budget is highly politicized.  It is the political battles over aspects of each budget that create the difficulties in the budget process.  However, for today, I am going to talk only of the process. 

            In Wisconsin, the governor initiates the budget process.  The governor is required to draft and submit a balanced budget to the Legislature.  This work by the administration is important and begins with each state agency submitting budget requests to the governor.  This is a critical aspect of the process as the agency requests form the groundwork of the governor’s budget.  The governor’s budget team then reviews each request and under guidance from the governor, modifies and combines all of the agency requests into the state budget.  The budget is now ready for submittal to the legislature. 

            The governor introduces the budget in one house of the legislature.  Historically, the budget is introduced on an alternating basis to either house each session.  Once the legislature receives the budget, it is referred to the Joint Committee on Finance.  The Finance Committee then requests the non-partisan Legislative Fiscal Bureau, a support agency to the legislature, to review it.  This review typically last about 4 weeks.  Following review by the Fiscal Bureau, the Finance Committee then holds a series of informational hearings where the Fiscal Bureau briefs Committee members on each portion of the budget.  Following these hearings, the Finance Committee then holds a series of public hearings on the budget.  These hearings are held in Madison at the Capitol and also in various parts of the state to enable residents from all regions to provide input should they desire. 

            Following the hearing process, the Joint Finance Committee begins executive action on the budget.  During this process, the Committee considers each portion of the budget and if any member desires to make a change, each proposed change is put to a vote before the Committee.  After any changes are made to the budget, the Committee then considers the entire budget as amended.  This concludes the Committee’s work on the budget. 

            With the Joint Committee on Finance having completed its work, the amended budget is then considered by whichever house of the legislature to which it was originally introduced.  Just like any other piece of legislation, members are allowed to suggest their own amendments to the budget.  Each proposed amendment is voted on by the entire house.  Following consideration of all amendments, the house then votes on the entire budget.  Following this action, the budget is then “messaged,” or sent to the other house for concurrence (agreement).  The second house may either concur or may choose to make its own changes to the budget.  If the second house does make any changes (and they usually do), the budget must then return to the first house for concurrence.  This process continues until both houses agree. 

            With the legislature having completed its work, the budget is then sent back to the governor for his signature.  However, the governor may make changes to the budget utilizing the veto power.  The veto power gives the governor the ability to delete portions of the budget before him.  He may not add anything.  Following any vetoes, the governor signs the budget.  But the process is not done yet!  Each house of the legislature has the right to review any vetoes the governor has made and may attempt to override those vetoes if they desire.  However, to override a veto, a motion to override a veto must receive the support of 2/3rds of the members, not a simple majority. 

            Following the veto review process, which again requires both legislative houses to agree, the budget becomes law.  This entire process is supposed to be completed by July 1^st, however for the past few budgets, due to political wrangling, this has not been achieved.  In that case, the previous budget remains in effect until the new one is passed. 

            So there you have it.  The budget process in a nutshell!  Just to give you an update as to where we are in the process this session, the budget is currently in the Joint Finance Committee and the Committee is in the public hearing phase of the process.

             As always, if you have questions or comments on this column or any other topic you might see or read in the news, I can be reached by e-mail at Rep.Bies@legis.state.wi.us or by telephone, toll-free at 1-888-482-0001.