$4.6B is left in Wisconsin general fund
Both parties take credit for the budget surplus
As expected, the state of Wisconsin is ending fiscal 2021-22 with a record high in its general fund.
Gov. Tony Evers announced Wednesday the state’s general fund balance increased nearly 300% from a positive balance of $1.2 billion at the end of fiscal 2020-21 to $4.6 billion at the end of the 2021-22 fiscal year, using Generally Accepted Accounting Principles (GAAP).
This was anticipated. At the end of November, when the state Department of Administration announced the budget surplus was projected to hit $6.6 billion for 2022-23, it also announced an anticipated general fund balance for 2023-24 of $8.4 billion. Wednesday’s announcement puts the state on track to match that estimate.
Both Democrats and Republicans took credit Wednesday for a third consecutive year of a positive general fund balance.
“When I took office our GAAP balance was in a deficit, but we’ve worked hard since to put our state in a stronger fiscal position moving forward, and for the past two years this report has demonstrated that we are doing just that,” Evers said in a statement. “Wisconsin is in the best fiscal position we’ve ever seen, and this year’s remarkable increase is another positive indicator that we are headed in the right direction — toward a stronger, more secure economic future that ensures we can keep working to build a Wisconsin that works for everyone.”
Joint Finance Committee co-chair Sen. Howard Marklein, R-Spring Green, credited Republicans taking control of the Legislature more than a decade ago for the state’s solid financial position.
“The recent release of the state’s audited financial statements continues the trend of positive reports we have received for the past 12 years,” Marklein said. “When I was elected to the legislature, we had a $3 billion deficit. We have made remarkable, consistent progress since Republicans have had control of the state’s checkbook.”
The general fund balance was included in the state’s Annual Comprehensive Financial Report. Other notable highlights were the state’s Transportation Fund balance increased by more than 26%, or $275 million, to $1.3 billion at the end of the 2021-22 fiscal year.
Also, Wisconsin’s total long-term debt decreased by more than $365 million.
The state’s positive financial position comes as Evers gets ready to deliver his biennial budget proposal to the GOP-led Legislature on Feb. 15.
The governor has already signaled he is not interested in two significant changes Republicans have previously floated: expansion of private school vouchers and lowering state income taxes for Wisconsin’s wealthiest residents.