The DPI superintendent is a constitutionally elected office and Medicaid costs are often driven by federal requirements. Walker has called on President-elect Donald Trump to send Medicaid dollars to the states in the form of block grants, which would mean fewer strings attached for how the money is spent.

Walker spokesman Tom Evenson said the governor’s budget will include more money for public education, technical colleges and the UW System.

“Gov. Walker is going to craft the next state budget based on the priorities of the people, not the wants of the government,” Evenson said. “He is going to continue to focus on making government accountable to taxpayers, promoting student success and rewarding work.”

Tax collections are projected to increase 2.9 percent and 3 percent in each of the next two fiscal years for a total of $32.3 billion. The state budget includes additional revenue from the federal government and other sources.

Those projections are likely to shift given the recent presidential and congressional elections and could result in major tax and spending changes at the federal level, the likelihood of the Federal Reserve raising interest rates, and the possibility that the economy, now its seventh year of expansion, could tip into recession.