April 19th, 2024

NEWS RELEASE:                                                                                                                                                                                                 For More Information:

FOR IMMEDIATE RELEASE                                                                                                                                          Contact: Senator Robert Cowles ~ (608) 266-0484

Positive News for Wisconsin Taxpayers

State Government Debt is at its Lowest Level in 25 Years

MADISON – Senator Rob Cowles (R-Green Bay) released the following statement in reaction to a recent Wisconsin Policy Forum report showing that “the state of Wisconsin’s finances are the strongest on record” with healthy general fund reserves and the lowest levels of debt in 25 years:

“2023 Wisconsin Act 19, the 2023-25 State Budget, had some big wins for conservative financial management. At my urging, we saw $400 million in Tobacco Settlement Fund debt paid down, retiring debt from this financial mistake made long ago early and saving over $40 million in future interest. We also used cash for approximately $1.2 billion in building projects and $555 million in transportation projects thanks to a large surplus. These projects were often previously funded through borrowing, resulting in long-term annual payments and, under current rates, high interest payment costs. Decisions like these are the reason Wisconsin now has its lowest debt level in more than 25 years. Another important financial choice moved up $590 million in delayed School Levy Tax Credit payments, ensuring they’re counted and paid in the proper fiscal year.

“Outside of the steps in Act 19, we’ve also seen our Budget Stabilization Fund continue to grow and achieve new record levels. Just 20 years ago, this Fund was practically nonexistent. Now, the balance is nearly $1.9 billion, and interest on the Fund will allow it to inflate even greater. Finally, Wisconsin also continues to have one of the nation’s only fully-funded pension systems for government employees. Unfunded pension liabilities in other states may force taxpayers to foot the bill for these liabilities. But here in Wisconsin, that will not be an issue.

“Thanks to decisions made this session, future budgets will have more flexibility to better fund critical government functions, further cut taxes, or, if we hit a recession, avoid tax increases. We’re not even a full year into this biennial budget, and I believe our financial picture will look even better in the coming months and years ahead. With debt retired early and additional debt issuance avoided, a strong reserve fund to address financial hardship, and no unfunded pension liabilities, Wisconsin taxpayers should breathe a sigh of relief that your state government is in a strong fiscal position. But we can’t stop here. In future sessions, I hope to see legislators from both parties and the Governor take financial management seriously so we can continue down this road.”

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