MADISON – Wisconsin Department of Administration (DOA) Secretary Joel Brennan today announced that state agencies will return more than $300 million to the state’s general fund in the current budget year (FY20-21). The savings will be generated based on specific targets that have been communicated to each agency.
The reductions follow Gov. Tony Evers’ July request that the DOA work with state agencies to identify $250 million in cost savings, known as lapses, for the current fiscal year (FY20-21), which ends June 30, 2021. This action also follows the nearly $70 million in cost savings that were identified and implemented across 18 of Wisconsin’s largest agencies in the previous fiscal year (FY19-20).
“There is no doubt that state agencies must make difficult decisions,” said Secretary Brennan. “This pandemic has affected every community in Wisconsin, and families across our state have also had to make tough decisions. This Administration is committed to taking the necessary actions to stabilize the state’s budget and spur on Wisconsin’s economic recovery from the COVID-19 pandemic.”
The next step is for agencies to develop plans on how they will achieve their targeted savings amounts before the end of the fiscal year. Agencies are being asked to submit their lapse plans to the DOA by December 15, 2020.
The Governor’s team and the DOA will continue to work collaboratively with state agency leaders to maximize the flexibility afforded to them so that agencies can meet the targeted reductions without impacting services and supports for Wisconsinites.
More information regarding the budget reduction, including the reduction targets by agency, can be found on the DOA website HERE.