MADISON, Wis. -- Wisconsin's budget shortfall could top $1.3 billion even if the economy begins to show signs of recovery early next year as expected, Gov. Scott McCallum said Monday.

But McCallum said he won't know until at least January precisely how large the state's deficit will be for the two-year budget period that began July 1.

He said he will ask the Department of Administration and Legislative Fiscal Bureau to revise revenue estimates for the budget in January, when he will propose a solution to the state's fiscal problems.

"It's like trying to figure out what will be in your checkbook after a two-year period," McCallum said.

McCallum reiterated that he would not support a tax increase to balance the state's books. But he would not provide any details on how he plans to make up the shortfall, saying he will release his proposal early next year.

McCallum said he would consider all options in solving the state's budget shortfall, but some suggestions were not feasible. Though some have suggested shutting down state government for a day or a week to save money, McCallum said he could shut down state government for an entire year and possibly not make up the shortfall.

The state's payroll is $1.3 billion, according to the governor's office.

Sen. Brian Burke, D-Milwaukee and co-chairman of the Legislature's Joint Finance Committee, said there was no rush for McCallum to devise his plan. He said the Legislature would have plenty of time to consider McCallum's proposal during January, February and March, when it is scheduled to meet.

"This is a time for prudence, not panic," Burke said.

Burke and Rep. John Gard, R-Peshtigo and Joint Finance Committee co-chairman, said the governor has not shared with them any of his ideas for balancing the budget.

Meeting with reporters Monday, McCallum was evasive when asked if he would support changes to the state's shared revenue system that provides aid to local governments or other proposals.

Gard said McCallum should assess the state's finances in January, offer a solution and then work with the Legislature to get it passed. But he did not expect a quick resolution.

"I believe this is going to take a while because of the diverse personality of the Legislature," Gard said.

Republicans control the Assembly 55-44 and Democrats control the Senate 18-15.

McCallum said he expects the economy to pick up early next year, but the state would likely still need to make up revenue already lost during the current recession.

The state had projected a 5.6 percent increase in income tax revenue for the fiscal year that began July 1. It also predicted a 3.7 percent increase in sales tax collections.

But income tax receipts for July, August and September decreased 1.2 percent from the same period of 2000, down to $1.43 billion from $1.45 billion.

Sales tax income for those three months was up only 1 percent from the same time a year ago, up to $918.9 million compared with $910 million last year.

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