We knew there would be a lot of money carried over into the next state budget, and today
we found out exactly how much. The General Fund has an undesignated balance of $2.581 billion as of the end of the [2021] fiscal year. General purpose revenue taxes were $19.573 billion compared to $17.532 billion in the prior year, an increase of $2.041 billion or 11.6 percent. General purpose revenue expenditures, excluding fund transfers, were $18.276 billion. This is $775 million more than the budgeted expenditure allocation of $17.501 billion.
$2.58 billion is obviously a huge number, and it's a slight bit above the already-huge amount of surplus and carryover that we thought we were going to see.
The higher-than-expected revenues led to a deposit in the state's Rainy Day Fund of $967 million, and $44 million was sent over into the state's Transportation Fund as well. Even with a large increase in the transfer to the Transportation Fund in the 2021-23 budget ($276 million is slated to be sent over), over $700 million being sent to the Medicaid Trust Fund, and $120 million going to the unemployment fund, there still is projected to be a lot of money left over in 2 years.
And remember, this does not count the $1.25 billion that is coming to the state in the 2nd half of ARPA funds from the Feds in 2022. Given how Wisconsin's finances have weathered the COVID era better than many other states and currently has an unemployment rate below 4%, we certainly have the ability to take care of the many needs in this state. If we choose to.
Unfortunately not a lot of we in this state. Mostly what a few Republicans choose to do.
ReplyDeleteIt's gross that the legislature is holding our tax dollars hostage to a warped GOP ideology of not using tax dollars for public good.
ReplyDeleteLet's be real here - it's not in the GOP's interest to have things get better for Wisconsinites between now and November 2022. They know giving money and supports works - it's why they had no problem with giving out all that CARES money when Trump was President.
DeleteAnd why Dems don't point out that fact constantly and make GOPs respond with any kind of answer that doesn't involve the failed "tax cuts for the rich and corporate" line. They won't be able to, so hammer that fact home.
It does look like Gov Evers found some way to use the left-over money. About $710 million will be used to update withholding tables on January 1, which accounts for 7 years of tax cuts and inflation. Which means you'll see a bit of a bump in your paycheck next year, even if you don't get paid more.
ReplyDeleteSo drop $710 mil off that chart for next year, add in the $60 mil that the 2021 year-end total exceeded the expected number by, and you still have $1.025 billion left over by the end of the next budget.