CHICAGO– Wisconsin named Waylon Hurlburt, a former advisor to Gov. Scott Walker, as budget director.
Hurlburt will take the helm next month as work begins in earnest on the state's new biennial spending plan. He replaces Michael Heifetz, who is taking the post of state Medicaid director in the Department of Health Services, the state Department of Administration said Tuesday. Heifetz has served as budget director since 2013.
Hurlburt will serve as budget director and division administrator of executive budget and finance. The positions fall under the Department of Administration. The division is responsible for accounting, budget and financial services for state government, including fiscal and policy analysis. The budget office prepares the biennial state budget, and assists agencies in the technical preparation of budget requests and prepares fiscal estimates for proposed legislation.
Hurlburt had been serving as a senior advisor to Gov. Scott Walker advising him on budget and policy issues since 2011. Previously, he worked in various state legislative offices since 2006. He starts in the new position Oct. 3.
"His extensive experience in budget preparation and analysis will play a significant role as we continue to effectively manage state resources into the 2017-19 biennial budget," DOA Secretary Scott Neitzel said in a statement. "We thank Michael for his work on the state budget and we look forward to his continued state service as Medicaid Director."
In 2015, Walker signed a two-year $72.7 billion state budget. Walker enjoys a Republican majority in the legislature. State agencies submitted their budget requests this month and will be incorporated into a biennial package that Walker will unveil early next year. Contentious issues are already shaping up as both Republican and Democratic lawmakers have had harsh works on the Department of Transportation's proposed $6.5 billion budget as falling short of what's needed.
Ahead of recent general obligation sales, the rating agencies all affirmed the state's AA-level ratings. Moody's Investors Service assigns Wisconsin a positive outlook while the others are stable.
"While revenue performance weakened in fiscal year 2015, recent improvements in liquidity, conservative management of retiree benefits that limits future budgetary pressures, and reductions in the state's long standing negative GAAP fund balance, if continued, would allow the state to improve its reserves and balance sheet," Moody's Investors Service wrote. The state's pension system is fully funded.
While the state has cut a structural budget imbalance, it continues to carry a $2.4 billion deficit based on generally accepted accounting principles and has narrow general fund balances. Reserves of $280 million, equal to only about 1.9% of fiscal 2015 tax revenues.
Based on January 2016 revenue projections, the general fund was on pace to close out fiscal 2016 on June 30 with an undesignated budgetary balance of $284 million or 1.8% of fiscal 2016 budgeted appropriations. Tax revenues are forecast to rise 4.6% in fiscal 2016 and a further 3.8% in fiscal 2017.
