The LFB projection is about $1.53 billion above the projected balance when the 2025-27 biennial budget was enacted last year. Wisconsin State Capitol. (Examiner file photo)

According to a Legislative Fiscal Bureau (LFB) analysis released on Thursday, Wisconsin’s general fund balance at the end of the biennium, June 30, 2027, is projected to be $2.37 billion. The projection is about $1.53 billion above the projected balance when the 2025-27 biennial budget was enacted last year.

According to the LFB, the majority of the growth, $1.367 billion, is due to an increase in estimated tax collections. Other contributions to the growth include $104 million in departmental revenues, an increase of $49.9 million in sum sufficient appropriations and an increase of $107.8 million in the amounts that are estimated to lapse to the general fund.

Both Republicans and Democrats sought to take credit for the news.

Rep. Mark Born (R-Beaver Dam) and Sen. Howard Marklein (R- Spring Green) said in a statement that Republicans’ “long-standing commitment to responsible budgeting and fiscal discipline is working.” 

The lawmakers warned that the state should continue to exercise caution. 

“These increased revenue estimates are driven in part by strong stock market performance and resulting tax collections,” the lawmakers said. “We must be careful when committing to ongoing spending using one-time money. Our disciplined approach has delivered results and put Wisconsin in a strong fiscal position.”

Senate Minority Leader Dianne Hesselbein (D-Middleton) said that the numbers are “a tribute to Wisconsin Democrats, who have prioritized investments in the people of Wisconsin that have improved our state’s economy, provided middle class tax relief and helped make Wisconsin a state where businesses want to invest and families want to live.”

Gov. Tony Evers told reporters that the revenues were larger than expected on Monday and he wanted to use the funds for priorities including over $1 billion in property tax relief. Republican lawmakers have said that they want Evers’ 400-year veto, which gave school districts the ability to enact annual revenue limit increases, repealed in order to deal with rising tax cuts.