Using the word "broke" helps Walker frame the debate around his controversial budget plans on his terms, Lee said, suggesting spending cuts are the only option and any tax increases are out of the question.

He cited Walker's business tax cut laws, passed during a special session on the economy, as an example. The legislation could end up costing the state about $116 million in the next budget.

"We weren't too broke to do tax breaks for corporations," Lee said.

Walker makes no apologies for using the term. "I've never said we stand alone," he said. "But if you have a budget deficit, you're broke."

Walker said he is not only concerned about balancing the upcoming budget but is thinking in terms of balancing the one after that.

Other budget options

Most agree this is not going to be an easy budget, especially without the option of tax increases. Walker's proposal includes $1 billion in cuts to education in addition to Medicaid cuts and less money going to counties and municipalities.