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LFB: State Now Expects $4.4 Billion More in Available Revenues

By John Forester | June 8, 2021

From WisPolitics.com …

Thanks to “unprecedented” general fund tax collections in 2021, the state is now expected to take in $4.4 billion more through mid-2023 than was anticipated just four months ago, according to the Legislative Fiscal Bureau.

The net impact of the eye-popping numbers mean lawmakers will have nearly $3.8 billion more to play with in the 2021-23 budget than they had anticipated following actions by the Joint Finance Committee through last week.

That’s even after the state transfers more than $800 million of the additional revenue growth to Wisconsin’s rainy-day fund.

LFB now projects the state will finish the current fiscal year June 30 with a surplus of $2.6 billion, $816.1 million more than previously estimated.

That higher-than-expected revenue growth will result in a deposit to the budget stabilization fund of $807.9 million that will push its bottom line to nearly $1.6 billion, according to LFB. That doesn’t include the $350 million that the Joint Finance Committee last month moved to transfer to the fund as part of the 2021-23 budget.

Under the committee’s actions through last week, the state was looking at a gross balance in the general fund at the end of the 2021-23 biennium of nearly $2.1 billion. That will now climb to an estimated $5.8 billion, according to the memo.

LFB regularly updates revenue projections after the tax filing deadline to give lawmakers new numbers as they complete work on the state budget. Two years ago, the LFB projected revenue growth would be $753 million higher than expected, and it was considered a jolt of good financial news for the state. Today’s estimates are nearly six times that.

Read the memo here.

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