Gov. Walker blames $101 million debt deferral on President Obama - WKOW 27: Madison, WI Breaking News, Weather and Sports

Gov. Walker blames $101 million debt deferral on President Obama

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MADISON (WKOW) -- Governor Walker is blaming the state's decision to defer $101 million worth of debt on President Obama.
    
On Tuesday, the Walker administration announced plans to defer payment on $101 million dollars worth of short-term loan debt that was due May 1st. The state will instead pay that amount off over the next eight years at an added cost of $2.3 million in interest.

The Walker administration has the $101 million on hand, but will move that amount into the general fund to shore up the state's budget balance.

Gov. Walker told 27 News Wednesday he wants to keep that cash on hand to cover any shortfalls caused by unexpected economic downturns in the national economy.

"The bottom line is we have concerns about the Obama economy nationally and we want to make sure Wisconsin's prepared for it," said Gov. Walker. "And the reason we're able to do that is we have the lowest level of bonding in some 20 years. So that put us in a position where we could do this and still have breathing room."

It marks the second straight year the Walker administration has chosen to defer payment on over $100 million in debt.

The Walker administration deferred payment on $108 million in debts last year, putting that money into the general fund and allowing the state to finish Fiscal Year 2015 with a $135 million budget surplus.

Democratic lawmakers say it's a clear sign the state can't afford the tax cuts for the wealthy that Republicans have imposed and that Gov. Walker is now paying for those cuts by pushing his debts off to future budgets.

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