State revenue is lagging but what does that mean for taxpayers?

MADISON (WITI) -- No new state revenue. That's the word from Madison -- where a new report shows tax collection isn't growing as fast as expected. Democrats and Republicans are split over what that means for taxpayers.

"Start looking seriously at the revenue we have and additional choices we could make," Rep. Chris Taylor (D-Madison) said.

That's the message from Wisconsin Democrats Wednesday, May 6th following the release of a tax report from the Legislative Fiscal Bureau. In January, it projected tax collection revenue would increase by 3.7% over the last fiscal year. So far, that growth to date is 3.3%.

"Going forward, I don`t think anything really changes as far as our priorities in the budget process," Rep. John Nygren (R-Marinette) said.

In a joint speech, Assembly Republicans pointed to the report's conclusion: That the estimates are still reasonable and shouldn't be adjusted. GOP leaders are touting a plan that would preserve $127 million that would have been cut from K-12 education in Governor Scott Walker's proposed budget.

"The levy credit is basically a way to buy down property taxes, so the governor made a double payment in that regard, so what we would do is not make that double payment. We`d make a payment that`s been similar -- traditionally, a single payment," Rep. Nygren plan.

Democrats are pushing another plan they say would generate even more money for education.

"They`re not prioritizing the needs of the state of Wisconsin. They`re prioritizing big tax giveaways to big corporations," Rep. Taylor said.

The manufacturing and agriculture tax credit is currently set at 5.5%. Next year, that credit is set to increase to 7.5%. Freezing that credit where it is would save about $78 million. Reducing it to last year's rate of 3.75% would save $226 million, but Republicans say that's a non-starter.

"It`s not surprising to me that when we are faced with a deficit, the first thing Democrats propose is to either increase taxes or delay tax cuts that have already been proposed so that`s not shocking. I think that would be the last priority of our caucus, not the first as it is with Democrats," Rep. Robin Vos (R-Rochester) said.

Democrats say freezing corporate tax credits would also free up more money to limit cuts to the UW-System.

Republicans say they want to minimize those cuts, and will talk about that in the coming days -- but they emphasize their top priority is funding K-12 education.

Assembly Minority Leader Peter Barca (D-Kenosha) issued this statement:

Assembly Majority Leader Jim Steineke (R-Kaukauna) released this statement:

Joint Finance Committee co-chairs Sen. Alberta Darling and Rep. John Nygren issued this statement:

Joint Finance Committee Democrats Sen. Lena Taylor, Sen. Jon Erpenbach, Rep. Chris Taylor and Rep. Gordon Hintz issued this statement:

Senator Mark Miller (D-Monona) issued this statement:

Senator Chris Larson (D-Milwaukee) issued this statement:

John Forester, director of government relations for the School Administrators Alliance issued this statement: