by Benjamin Yount
Wisconsin’s financial picture continues to improve.
Gov. Tony Evers on Tuesday said the state is ending the most recent fiscal year with a $1.8 billion surplus.
“This is great news for Wisconsinites as it puts our state in a solid fiscal position to ensure the long-term economic success and security of our state,” the governor said in a statement.
The Legislative Audit Bureau noted the state’s finances jumped by more than $5 billion in just one year.
“Total revenue increased by $5.2 billion and was $34.6 billion in FY 2020-21. This increase was largely the result of a $3.9 billion increase in federal revenue and a $1.2 billion increase in tax revenue,” LAB reported Tuesday. “Total expenditures increased by $4.6 billion and were $31.4 billion in FY 2020-21. This increase was largely the result of increases in Medical Assistance expenditures and the State’s expenditure of the federal funding it received related to the public health emergency.”
The Audit Bureau also noted Wisconsin’s Budget Stabilization Fund jumped as well.
“The balance in the Budget Stabilization Fund increased from $761.8 million as of June 30, 2020, to $1.7 billion as of June 30, 2021, due to a $967.4 million transfer that was initiated by law because tax revenues in FY 2020-21 exceeded the projections,” LAB reported.
Gov. Evers took credit for the positive changes.
“We’ve worked hard to pay down the state’s debt and pay bills on time so we can continue building a strong economy by investing in the issues Wisconsinites care about from schools to roads to affordable, accessible healthcare,” the governor said,
But conservatives at the Capitol say Republican lawmakers, and their fight against raising taxes, are the ones who should get the credit.
“Thankfully the Republican Legislature refused Gov. Evers’ deficit-creating budget earlier this year – and now the state is on sound financial footing and we can realistically discuss the next big tax reform – eliminating the personal income tax for families and small businesses,” Chris Reader, executive vice president of the Institute for Reforming Government said.
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Benjamin Yount is a contributor to The Center Square.
Photo “Wisconsin State Capitol” by Ander107 CC BY-SA 3.0.
