In an announcement that should be well-received by bond investors, Gov. Tony Evers on Dec. 18 said that for the sixth consecutive year, the state’s general fund recorded a positive balance and the state once again reduced its long-term debt.
At the end of the 2024-25 fiscal year, the state’s annual comprehensive financial report shows a $3.9 billion positive balance in the general fund. The report also shows the state’s budget stabilization fund, also known as the “rainy day” fund, ended the year with a balance of $2 billion, the highest in state history.
A strong economy with full employment (and more than 3 million employed taxpayers feeding state coffers) is seen as the key driver. Wisconsin’s latest employment report, for November 2025, showed the state’s seasonally adjusted unemployment rate holding steady at 3.1% (compared to the 4.6% national unemployment rate), with over 3.046 million nonfarm jobs, down slightly from the record 3.073 million in November 2024.
Evers said in a statement Wisconsin’s total long-term debt decreased by over $678 million, which indicates the state repaid existing debt in excess of new debt being issued during 2024-25.
Wisconsin achieved an AAA bond rating on its general obligation debt in 2021, which it has maintained since. It marked the first time Wisconsin’s underlying bond rating has been at the AAA level by any rating agency since 1982.
“This is something that we can all be proud of, and it’s great news for the people of Wisconsin and our state’s economy,” Evers said in a press release.
Other highlights of the report:
- This marks the sixth consecutive year the state’s general fund has recorded a positive balance using generally accepted accounting principles, or GAAP, following 30 consecutive years of the state running a deficit.
- The budget stabilization fund, now at $2 billion, has set a new record in every fiscal year since 2019.
- The state’s transportation fund, which pays for all of Wisconsin’s transportation needs (including local roads), maintained a $2 billion total fund balance in fiscal year 2024-25.
- The state has reduced its long-term debt obligations by an average of $430 million annually over the past six years.
Source: State of Wisconsin
