Wisconsin state budget and finances

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Wisconsin budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AA (as of 2017)

Current governor: Tony Evers

Financial figures

Total spending (state and federal funds): $45,670,000,000 (estimated 2016)

Per capita spending: $7,903 (estimated 2016)

Total state tax collections: $17,607,733,000 (2016)

Per capita tax collections: $3,047 (2016)

State debt: $22,086,615,000 (2014)

Per capita state debt: $3,829 (2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Wisconsin

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

In Wisconsin, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2015 and 2016, total government spending in Wisconsin decreased by approximately $413.0 million—from $46.1 billion in fiscal year 2015 to an estimated $45.7 billion in 2016. This represents a 0.9-percent decrease.

In Wisconsin in fiscal year 2015, 48.1 percent of total tax revenues came from income taxes.

Education accounted for 30.5 percent of state expenditures in fiscal year 2015, while 19.3 percent went to Medicaid.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2016 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.

State tax collections by source ($ in thousands), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2016 population	Per capita collections
Wisconsin	$170,537	$7,721,707	$1,151,656	$8,473,461	$90,372	$17,607,733	5,778,708	$3,047
Illinois	$60,814	$18,524,265	$2,745,949	$17,173,986	$402,206	$38,907,220	12,801,539	$3,039
Iowa	$1,410	$4,591,421	$925,958	$3,930,190	$109,584	$9,558,563	3,134,693	$3,049
Minnesota	$849,824	$10,120,647	$1,426,235	$12,248,267	$544,155	$25,189,128	5,519,952	$4,563
United States	$18,364,298	$442,909,995	$52,164,396	$392,286,910	$24,538,146	$930,263,745	322,762,018	$2,882.20
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

The table below lists 2016 tax collections by source as percentages of total collections. About 48.1 percent of Wisconsin's total state tax collections came from income taxes.

State tax collections by source (as percentages), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Wisconsin	1.0%	43.9%	6.5%	48.1%	0.5%
Illinois	0.2%	47.6%	7.1%	44.1%	1.0%
Iowa	0.0%	48.0%	9.7%	41.1%	1.1%
Minnesota	3.4%	40.2%	5.7%	48.6%	2.2%
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Wisconsin’s general revenues came from the federal government in 2014. That year, Wisconsin received approximately $9.0 billion in federal aid, 27.8 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $1,566 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2014
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2014 population	Aid per capita
Wisconsin	$9,015,403	27.8%	38	5,758,377	$1,566
Illinois	$17,851,826	26.5%	42	12,867,544	$1,387
Iowa	$6,165,129	32.6%	26	3,108,030	$1,984
Minnesota	$8,877,099	24.0%	48	5,453,109	$1,628
Sources: United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2014.

Spending

Estimated 2016 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

The total estimated government spending in Wisconsin in fiscal year 2016 was $45.7 billion.

Total estimated state spending, FY 2016 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Wisconsin	$34,874	$10,796	$45,670	5,778,708	$7,903
Illinois	$39,168	$16,810	$55,978	12,801,539	$4,373
Iowa	$16,345	$6,349	$22,694	3,134,693	$7,240
Minnesota	$26,715	$11,494	$38,209	5,519,952	$6,922
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017

Spending by function

See also: State spending by function as a percent of total expenditures

State spending in Wisconsin can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2015, other spending accounted for 40.8 percent of Wisconsin's total expenditures.

State spending by function as a percent of total expenditures, FY 2015
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Wisconsin	16.0%	14.5%	0.3%	19.3%	2.7%	6.3%	40.8%
Illinois	14.0%	3.4%	0.3%	27.1%	2.4%	9.0%	43.7%
Iowa	16.1%	25.5%	0.5%	22.7%	2.1%	8.6%	24.7%
Minnesota	25.1%	4.9%	1.4%	29.9%	1.5%	10.8%	26.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

The table below details the spending trends in Wisconsin in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Spending by function from 2010 to 2015 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2015	16.0%	14.5%	0.3%	19.3%	2.7%	6.3%	40.8%
2014	16.1%	14.2%	0.4%	18.4%	2.8%	6.6%	41.5%
2013	16.2%	14.3%	0.3%	17.2%	2.9%	6.9%	42.1%
2012	16.7%	14.1%	0.4%	16.5%	2.9%	6.9%	42.5%
2011	17.3%	13.7%	0.3%	17.0%	3.0%	6.4%	42.2%
2010	18.1%	12.3%	0.3%	17.1%	3.1%	7.1%	41.9%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

State debt

See also: Wisconsin state debt

State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Wisconsin had a debt of $22,086,615,000 in fiscal year 2015. The state debt per capita was $3,829. This ranked Wisconsin 16th among the states in debt and 17th in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.

Economic indicators

See also: Economic indicators by state

Wisconsin's GDP increased by 1 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes, in turn, may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In 2013, Wisconsin had the lowest portion of residents, 11 percent, fall below 100 percent of the federal poverty level among its neighboring states. The state's median annual household income between 2011 and 2013 was $54,205, and by September 2014 the state had an unemployment rate of 5.5 percent, lower than the national rate.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Wisconsin	11%	15%	31%	42%	$54,205	6.6%	5.5%	$282,486
Illinois	13%	17%	31%	39%	$54,083	9.1%	6.6%	$720,692
Michigan	15%	19%	30%	37%	$49,902	8.8%	7.2%	$432,573
Minnesota	12%	14%	28%	46%	$59,847	4.9%	4.1%	$312,081
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Wisconsin budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Wisconsin CAFR Wisconsin budget agency

Wisconsin operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies in June.
2. State agencies submit budget requests in September.
3. The governor submits his or her proposed budget to the Wisconsin State Legislature in January or February.
4. The legislature adopts a budget in June or July. A simple majority is needed to pass a budget.
5. The biennial budget cycle begins July 1.

Wisconsin is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally and statutorily required to submit a balanced budget. In addition, the legislature is required to pass a balanced budget.

Agencies, offices, and committees

There are three major standing committees in the Wisconsin State Legislature that deal with budget and finance matters: the Senate Finance Committee, the Assembly Finance Committee, and the Joint Finance Committee.

The Wisconsin State Auditor leads the state's Legislative Audit Bureau. The auditor is appointed by the legislature's Joint Committee on Legislative Organization. The auditor "shall at all times with or without notice have access to all state departments and to any books, records or other documents maintained by such agencies and relating to their expenditures, revenues, operations and structure." The office is nonpartisan.

The Wisconsin Treasurer serves as the state's chief banking officer. The state treasurer is elected every four years in partisan elections.

Public Interest Research Group 2016 report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Wisconsin received a grade of A and a numerical score of 97, indicating that Wisconsin was "Leading" in terms of transparency regarding state spending.

Noteworthy events

• Lawmakers in Wisconsin failed to pass a state budget by the start of the state’s new fiscal year on July 1. The missed deadline, however, was not out of the ordinary in Wisconsin. Between 1997 and 2017, the state passed only three budgets by July 1. In Wisconsin, spending levels from the previous two-year budget stay in effect until a new budget passes, allowing state agencies to continue operating and sparing citizens from most effects of a government shutdown. If the budget were to continue to be ironed out months down the road, some projects could be delayed and local school districts would be in the position of setting budgets without knowing how much state funding will be available.

• The Joint Finance Committee of the Wisconsin State Legislature passed a motion on September 5 that led to budget negotiations moving forward in the legislature. The plan, which was passed by the committee on a 12-4 party-line vote, put $400 million towards transportation. Governor Scott Walker’s (R) budget proposal had $500 million going into transportation. The committee's plan also included a state registration fee of $100 for electric vehicles and $75 for hybrid vehicles. On September 6, the full $76 billion budget passed in the finance committee. The state Assembly approved the budget in a 57-39 vote on September 12, and the state Senate approved it on September 15. Until the afternoon of September 15 it was unclear if Republicans would have the 17 votes required to pass the bill. However, after a three-hour recess, senators returned to the floor with Republicans suggesting that they have the votes needed for the votes to pass. The bill passed the Senate on a 19-14 vote. Governor Walker made 99 vetoes to the bill before signing it on September 21, exercising Wisconsin's line-item veto power that extends to individual words, exceeding the power of most state governors.
• Throughout Wisconsin's 2017 legislative session, Republicans in the state Senate and state Assembly disagreed on how to fund road projects, how to increase funding for K-12 schools, and how to cut taxes. Assembly Speaker Robin Vos (R) said on Wisconsin Public Radio, "If you're not willing to raise the revenues, it's not conservative to borrow and spend, which is unfortunately what it seems like our Senate colleagues are talking about."

• On September 14, members of the state Assembly voted in 64-31 favor of a $3 billion tax incentive package aimed at bringing a Taiwanese LCD flat screen factory to southeast Wisconsin. That vote sent the bill to the desk of Gov. Walker, who signed the bill not long after.

• Hon Hai Precision Industry Co Ltd., which trades as Foxconn Technology Group, looked to build a $10 billion campus in Southeast Wisconsin. Foxconn announced in October 2017 that the factory would be built in Mount Pleasant in Racine County. The new factory was projected to bring up to 13,000 jobs to the area by 2021. Salaries would start at $41,600 a year and would average $53,900. The deal would allow Foxconn to receive up to $1.35 billion after a full investment has been made into the plant and equipment. Another $1.5 billion would be given to Foxconn after the company begins to employ workers. A report by the Legislative Fiscal Bureau found that it could take 25 years for the state to break even financially on the deal. Foxconn is also looking at Dane County for a second campus.

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

See also: Spending and finance on the ballot and List of Wisconsin ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Wisconsin.

1. Wisconsin Transportation Fund Amendment, Question 1 (2014)
2. Wisconsin Question 2, Require Legislative Approval for State Expenditure of Federal Funds Amendment (August 2024)

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Wisconsin state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the terms Wisconsin budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Wisconsin state budget and finances - Google News

See also

• Historical Wisconsin budget and finance information
• Tax policy in Wisconsin
• Wisconsin government sector lobbying
• Wisconsin public pensions
• Governor of Wisconsin
• Wisconsin State Senate
• Wisconsin House of Representatives
• Wisconsin State Legislature
• Compensation of state executive officers