After being hit hard by the Great Recession, Wisconsin’s unemployment fund has bounced back in recent years, finishing 2018 with its highest balance since 2000, a new Wisconsin Policy Forum report indicates.
Since facing a $1.36 billion deficit at the end of 2010, historically low unemployment levels have allowed the fund to pay off its debt. In turn, employers are reaping the benefits through lower unemployment taxes, which were previously raised to pay off a federal loan. Collections have been cut in half over the last six years, from $1.19 billion in 2012 to $598 million last year.
The fund had $1.74 billion in reserves at the end of 2018, an increase of more than $3 billion in eight years.
While last year’s fund total marks the highest year-end balance since 2000, it still fell short of the state’s federally recommended reserve level of $1.9 billion.
