MADISON, WI (WTAQ-WLUK) — Wisconsin’s budget surplus ended the last fiscal year at $3.3 billion, according to a report released Wednesday.
The State Controller’s Office says the positive balance exceeded budgeted estimates by about $350 million. There was also a $2.1 billion balance in the state’s “rainy day fund,” the largest in the fund’s history.
The 2026 fiscal year ended July 30.
According to the report, state tax collections were 3.4% higher than in 2025 and 2.2% higher than initially expected.
What to do with the extra money has been a topic of debate at the state Capitol. In May, Democratic Gov. Tony Evers and Republican leaders of the Legislature announced a deal to issue rebates to taxpayers and increase public school funding. That deal, however, failed to pass the state Senate.
With Evers, Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu all deciding not to seek reelection next month, it will be left to the next governor and Legislature to decide how to handle the surplus.
The Legislature must pass, and the governor sign, the next two-year state budget in the coming year. The 2027-29 budget will take effect July 1.
