Wisconsin Expected to See Surplus of $4.3 Billion

Tuesday, February 18th, 2025 -- 10:01 AM

(Rich Kremer, Wisconsin Public Radio) As Gov. Tony Evers puts the finishing touches on his next state budget proposal, projections show Wisconsin is expected to see a surplus of around $4.3 billion. 

According to Rich Kremer with Wisconsin Public Radio, it sets the stage for a familiar battle, with the Democratic governor calling for investments in priorities like education and child care and leaders of the Republican-controlled state Legislature calling for tax cuts.

The $4.3 billion projection comes from an analysis by the nonpartisan Wisconsin Legislative Fiscal Bureau, which suggests state tax revenues will be nearly $895 million higher than expected throughout the next two-year budget cycle.

The report credits that to a national economy that grew faster than expected in 2024 and modest increases in state sales tax revenue. While the surplus is large, it’s not exactly new.

Two years ago, Evers and lawmakers began the budget cycle with a projected $7 billion surplus. And even after they passed a new budget that increased spending and cut some taxes, the state ended last fiscal year with $4.6 billion in the bank.

Those figures refer to the state’s general fund, which is like its main checking account. There’s an additional $1.9 billion in reserves in Wisconsin’s rainy day fund.

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