MADISON - The leading Republican in the state Senate wants to use new revenue that could be used for a rainy day to cut taxes next spring — potential spending that comes at a time when the Federal Reserve is making moves to stave off an economic recession.

Senate Majority Leader Scott Fitzgerald is floating the possibility of a new tax cut as he launches a campaign for a seat in Congress representing the deeply conservative 5th Congressional District.

Fitzgerald said in an appearance Sunday on WISN (Channel 12) promoting his run for Congress that if the state has enough socked away he would like to put Wisconsin families "in a much better position" through a tax cut.

"I think we're going to be able to do it," Fitzgerald said.

State lawmakers are set to see $753 million more in tax revenue than previously anticipated. Democratic Gov. Tony Evers and one of the GOP leaders of Legislature's finance committee have said most if not all of the unexpected windfall should stay in the state's rainy-day fund.

The state is expected to take in the additional revenue through the summer of 2021, giving lawmakers a small windfall as they work on the next state budget. Fitzgerald said Sunday he believes the rainy-day fund currently has $600 million in it.

Fitzgerald's spokesman Alec Zimmerman said work on the proposal is in its early stages and didn't provide more details about what kind of tax cut Fitzgerald is considering.

"It should be no surprise that he wants to keep looking at ways we can reduce the tax burden further, especially after Wisconsin has seen billions of dollars in tax cuts during his time in leadership," Zimmerman said.

Evers said in May he would use $56 million of the additional money to immediately pay pay off debt, which he said would save millions in the long run, and another $33 million on technical colleges and worker training. The rest — more than $650 million — would be placed in the state's rainy-day fund under Evers' plan.

Rep. John Nygren, R-Marinette, said in May he wants all of the $753 million to be put in the fund in case the economy softens.

The Federal Reserve twice in two months lowered its benchmark interest rate by quarter of a percentage point in an effort to keep the 10-year-old economic expansion chugging along and stave off a possible recession triggered by a global economic slowdown and the U.S. trade war with China.

Aides to Evers, Nygren and Democratic legislative leaders Sen. Jennifer Shilling and Rep. Gordon Hintz did not immediately have a reaction Sunday to Fitzgerald's proposal.

The state will take in the additional funds between now and June 2021 because of better-than-expected income tax collections from individuals and corporations, the nonpartisan Legislative Fiscal Bureau wrote in a May memo.

The increased income tax collections will be offset by collections of sales taxes, cigarette taxes and utility taxes that are not as strong as initially estimated.

Under existing state law, $291 million of the additional revenue would automatically go into the state's rainy-day fund.

Fitzgerald in May said he wants to pass a bill to stop that from happening because he believes some of the new revenue may come from tax overpayments that will have to be refunded. He said the state should leave some of the money sitting in its main account so it could more easily pay those refunds.

Fitzgerald also said some could be used for building maintenance or road projects.

Contact Molly Beck at molly.beck@jrn.com. Follow her on Twitter at @MollyBeck.