I looked into it further...mind you that I'm tired, and its late, and my "research" consisted of reading a few news articles. So, I can't be for certain what I'm about to say.
Apparently, our budget was pretty balanced. In January, Walker quickly doled out $140 million in tax breaks to huge corporations, including Walmart. This was done to create the basis for this new bill which attacks the unions in an attempt to cut spending and balance the budget.
People are claiming that Walker "invented" our $140 million deficit to propagate the Republican agenda.
Again, I've not had the time to really look into these claims, so if anyone comes up with more solid information, please let me know.