Wisconsin to collect $818 million more than expected through June 2021

Patrick Marley
Milwaukee Journal Sentinel

MADISON - Officials got word Thursday that the state is expected to take in about $818 million more through mid-2021 than previously believed — making funds available for some of Democratic Gov. Tony Evers' initiatives and a tax cut favored by Republicans. 

Much of the extra money will automatically go into the state's rainy-day fund, so lawmakers will have about $452 million in unanticipated funds available for spending or cutting taxes. The state is expected to take in the additional money through June 2021.

The additional money is flowing into the state's coffers because the economy has delivered stronger tax collections than what officials anticipated when the state budget was approved last year. The nonpartisan Legislative Bureau disclosed the new figures in a memo Thursday.

The extra money comes as lawmakers wind down their legislative session but consider last-minute ideas, including a plan to reduce property taxes.

Republican Senate Majority Leader Scott Fitzgerald of Juneau has focused on that idea in recent months. He hasn't released a specific plan but could develop one now that legislators know how much cash is available.  

"Once again, Wisconsin’s budget has run a massive surplus," Fitzgerald said in a statement. "After money has been set aside in the rainy-day fund, the Legislature should prioritize giving that money back to Wisconsin families in the form of a property tax cut."

Evers, meanwhile, announced in his State of the State address this week that he was calling a special session to deal with the dairy crisis. He's offered an $8.5 million proposal, and the rosy budget projection may make it easier for him to sell his plan.

State law says that half of any revenue the state takes in above projections is automatically sent to the rainy-day fund, which is supposed to be tapped only during recessions and emergencies. That means that $409 million of the $818 million will go to the rainy-day fund. 

Because the state will collect more interest on its savings and will have some lowered costs than earlier estimated, it will have slightly more than that — $452 million — available for spending. 

Contact Patrick Marley at patrick.marley@jrn.com. Follow him on Twitter at @patrickdmarley.