Wisconsin’s budget claims are under scrutiny as Evers highlights financial changes since taking office
Madison: As Wisconsin gears up for budget season, terms like “surplus” and “rainy day fund” are popping up everywhere. It’s that time when lawmakers, led by Democratic Gov. Tony Evers and the Republican-controlled Legislature, clash over how to use the state’s extra cash. Should they invest in programs or cut taxes? That’s the big question.
On December 28, 2024, Evers took to X, the platform formerly known as Twitter, to boast about the state’s finances. He claimed that after 30 years of deficits, every fiscal year under his watch has ended with a positive balance. He mentioned a whopping $4.5 billion surplus and a record-high rainy day fund.
Now, when Evers talks about Wisconsin’s “checking account,” he’s referring to the general fund, which collects taxes like income and sales taxes. The “rainy day” fund is where the extra cash goes, saved for tough times when revenue dips or spending spikes.
So, let’s break down Evers’ claims. First, did the general fund have a positive balance every year since he took over? PolitiFact Wisconsin checked with Evers’ office, and they pointed to the state’s Annual Comprehensive Financial Report. The fiscal years run from July to June, and Evers started his first full budget in 2020. The reports show a positive balance each year: $1.5 million in 2020, jumping to billions in the following years.
Next, did the general fund run a deficit for 30 years before Evers? A 2021 report from the Wisconsin Policy Forum confirmed that the fund had a surplus for the first time since 1990, marking a significant turnaround. This was partly due to federal pandemic aid, but it’s true that the fund had a negative balance for three decades before Evers took office.
Lastly, is the rainy day fund at a record high? Yes! The Legislative Fiscal Bureau shows that the fund hit its peak in 2022 at $1.7 billion, and projections suggest it will keep climbing to $2 billion by 2025.
While Evers doesn’t take full credit for these financial improvements, his actions have played a role. He’s used extra revenue to pay off state debt and has made moves to keep the general fund healthy. However, Republicans also claim credit for keeping spending in check, especially after they rewrote Evers’ proposed budget in 2023.
In the end, Wisconsin’s financial situation is a team effort, influenced by both the governor and the Legislature, along with the broader economy. So, while Evers’ claims hold water, the full story is a bit more complex.
