Fiscal Facts

As part of its new budget brief, the Wisconsin Policy Forum offers six keys that are likely to influence Wisconsin’s upcoming budget debate.

Gov. Tony Evers, seeking to advance goals that include addressing the impact of the COVID-19 pandemic, proposes in his 2021-23 budget bill to bolster spending on education, economic development, social services, and infrastructure.

As public usage of outdoor spaces in Wisconsin has been on the rise, state leaders may wish to consider the trend in making key budget decisions, including on the future of a state program to fund purchases of and improvements to public lands.

Wisconsinites increased participation in outdoor activities during the COVID-19 pandemic, and while the durability of this shift is uncertain, policymakers may wish to consider it as they craft state and local budgets for public lands and recreational and conservation programs.

A paradigm shift appears underway in Wisconsin’s state transportation fund as vehicle fees may soon rival fuel taxes as its primary revenue source.

The surprise blow of COVID-19 has hammered key state transportation revenues in Wisconsin, leaving them short of projections for the current two-year budget cycle and raising questions about whether they will fully rebound after the pandemic.

A recent state report shows that from 2020 to 2022, Wisconsin’s general fund is projected to receive at least $70 million less than originally expected from gaming revenues collected from the state’s 11 federally recognized tribes.

In recent decades, the distribution of spending between state and local government in Wisconsin has undergone a slow but profound shift, with the gap between the local and state shares nearly erased.

As a pandemic and economic turmoil underscore the value of critical local government services, Wisconsin ranks 15th among the states in local government spending, but 3.6% below the per capita national average.

For the first time on record, Wisconsin’s main fund closed the year with a small positive balance, wiping out the longstanding financial gap that was often referred to as its “hidden deficit.”