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Friday, Aug. 1, 2025

Is Wisconsin facing a structural deficit in the 2027-29 state budget?

Noe Goldhaber / Wisconsin Watch, Wisconsin Watch
yes

State revenue is projected to outpace spending during the next two years leaving a $770 million surplus as of July 1, 2027. If spending and revenue are the same over 2027-29, the state will have a deficit of -$1.4 billion in its general fund by the end of that biennium, the nonpartisan Legislative Fiscal Bureau reported.

That excludes the state’s $2.1 billion rainy day fund.

Wisconsin ended 2023 with a record $7.1 billion surplus and the last budget cycle with $4.4 billion.

The current state budget spends down $3.6 billion as Gov. Tony Evers prioritized spending increases for education and childcare while Republicans pushed tax cuts.

The state’s general fund in 2027 is projected to be at the lowest level since 2018. Wisconsin faced structural deficits from 1996-2011, with a projected $3.6 billion deficit during the 2011-13 biennium. That prompted steep public employee benefit cuts under the controversial Act 10 law.

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