A new report says it will take more than $2 billion just to maintain current state spending levels with some modest increases.

The analysis from the Wisconsin Policy Forum released Friday illustrates the dilemma facing incoming Democratic Gov. Tony Evers and the Republican-controlled Legislature. Evers will have to introduce a balanced budget early next year for the Legislature to consider.

The report says it will take $2.2 billion to continue existing programs. Without an increase in revenue to cover that, taxes will have to go up or cuts will have to be made.

The report assumes a 1 percent increase for state agencies and more than $1.1 billion for Medicaid and K-12 school aid combined.

Evers ran on the promise of increasing money to schools alone by $1.4 billion.