Wisconsin’s state budget is under review as Gov.Tony Evers proposes significant spending increases for the 2025-27 biennium, according to the Wisconsin Policy Forum’s latest budget brief. The brief highlights both the strengths and potential challenges of the proposed budget.
As of early 2025, Wisconsin’s financial health appears robust, with low unemployment and a general fund balance exceeding $4 billion. However, projections indicate that current spending surpasses revenue intake, leading to a gradual decline in budget reserves. Both the Democratic governor and the Republican-led Legislature have introduced tax and spending plans that could further deplete these reserves, potentially resulting in future budget shortfalls.
Evers’ budget outlines a historic increase in state spending. General purpose revenue (GPR) appropriations are set to reach $25.49 billion for the fiscal year ending June 2026, marking a 19.2% rise from the previous year. Total expenditures across all state funds are projected to grow by $9.92 billion in 2026, culminating in $59.6 billion by 2027 — a 20.3% increase over two years.
Notable initiatives include a $500 million plan to modernize the state prison system, which involves closing the Green Bay Correctional Institution and repurposing other facilities. Additionally, $480 million is earmarked to reinstate the Child Care Counts program, aiming to enhance access to affordable child care and improve service quality. A one-time expenditure of $400 million is proposed for grants to expand high-speed broadband in underserved areas.
To fund these initiatives, the plan proposes reducing the state’s general fund balance from nearly $4.3 billion to $646 million, while maintaining approximately $2 billion in the rainy day fund. The budget also suggests increasing state taxes by over $2 billion across two years, alongside $1 billion in measures to mitigate local property taxes. If implemented, this could result in a two-year structural deficit of about $4 billion, potentially complicating the balancing of the 2027-29 budget, even if the economy remains stable.
