MADISON, Wis. — The Legislative Fiscal Bureau announced Wednesday that Wisconsin will likely wrap up the current fiscal year with a $7.1 billion surplus, instead of nearly $6.6 billion as previously projected in November.

The announcement comes just one day after Gov. Tony Evers delivered his fifth State of the State address and prepares to formally announce his third budget proposal, the first of his second term, next month.

Why Did The Surplus Increase?

  • Wisconsin's Medicaid fund has its own surplus because of federal rate matching 

  • The previous state budget set aside funds to offset the cost of repealing the personal property tax, which ultimately wasn't signed into law

  • Tax revenues are projected to be higher than originally anticipated for this current fiscal year

Wisconsinites heard a lot Tuesday about where the governor would like to see the state's surplus dollars go, and Evers spent much of Wednesday hoping to build support for those ideas as he kicked off a tour across the Badger State.

Throughout his speech Tuesday, Gov. Evers announced several spending proposals totaling more than a billion dollars. Aside from the surplus, Wisconsin has an additional $1.7 billion in its so-called "Rainy Day Fund," which means whether those priorities are “affordable” will vary depending on who you ask.

Gov. Tony Evers kicked off a statewide State of the State tour Wednesday stopping at the YMCA in Waukesha, Wis. (Spectrum News 1/Jack Spaltholz)

During an interview Wednesday for an upcoming "In Focus" segment, Republican Assembly Speaker Robin Vos said there is a big difference between the state's checking and savings accounts.

“I've never actually been on the Oprah show, but I felt like I was a member of the audience,” Vos explained of Tuesday's State of the State address. “'A million for you and a million for you and a million for you.' I just don't think it is very realistic knowing that our state doesn't have an unlimited checkbook.”

One of the areas the governor would like to write a so-called check for is mental health. Evers pledged to put nearly $500 million towards expanding such services, with $270 million of those dollars specifically for kids.

Republican Assembly Speaker Robin Vos reacts to the State of the State address during an In Focus segment Wednesday.

Republicans and Democrats, like they do on many other issues, agree there is a problem, but reaching a compromise is easier said than done.

“Do we have a crisis with mental health? We do, but using one-time money for on-going expenses, I don't think is as simple as spending a $100 million or $200 million and saying we are going to solve this problem,” Vos said.

While Gov. Evers was reelected for his stance on several of the issues he discussed Tuesday night, so were Republicans. Since voters opted for four more years of divided government, both sides will need to find middle ground on the budget before the July deadline.

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