Dems are touting a Legislative Fiscal Bureau report released today as evidence that their mix of spending cuts, job creation efforts and revenue increases have helped to stabilize the budget.

Republicans said the report shows state finances continue to dangerously teeter toward fiscal disaster.

The LFB has revised its projections for the state's gross balance, dropping it almost $220 million to $55.7 million -- not a large enough gap to trigger a budget repair bill. State law requires a budget repair bill any time expenditures exceed revenue by one-half of 1 percent, a gross balance of roughly minus-$70 million in this biennium, according to DOA. The state budget exceeded that threshold in each of the last two years as revenue started to plummet due to the declining economy.

The latest estimates take into account $200 million in administrative lapses Doyle vetoed into the 2009-11 budget -- budget trims the guv referenced in his State of the State speech last night.

State Budget Director Dave Schmiedicke said decisions on administering $200 million in lapses will come in the next few weeks.

"We are looking at different approaches to keep in mind the key priorities of education and health," Schmiedicke said. Including the budget repair bill from 2009 and the 2009-11 biennial budget, more than $3.54 billion has been cut from state government thus far, Schmiedicke said.

Joint Finance Committee Chair Rep. Mark Pocan, D-Madison, said the estimates show the state economy is bouncing back.

"There is a lot of reason to have some hope," said Pocan. "A lot of states are seeing a lot tougher times right now."

But Rep. Robin Vos, one of four Republicans on JFC, said Democrats are ignoring the finding that state revenues remain nearly flat.

"If that continues, we will be headed for a massive fiscal train wreck," Vos, R-Caledonia, predicted.

More reaction can be found in the press releases from Pocan, Vos, JFC co-chair Sen. Mark Miller, and Assembly Speaker Mike Sheridan.

-- By Greg Bump