MADISON, Wis. (AP) -- Gov. Scott Walker's administration says no emergency budget bill will be necessary next year and that the state is poised to end the two-year budget cycle in June with a $348 million balance.

Department of Administration Secretary Mike Huebsch laid out the figures in a letter required under the law delivered Tuesday to Walker and members of the Legislature.

The memo says state revenues are projected to increase by 3.8 percent in the first year of the next budget which begins in July and go up 3.5 percent in the second year.

State agencies have requested $171 million more in funding than is projected to be available under the next budget.

Walker will submit his budget to lawmakers in February. They are expected to pass it around June.