With Gov. Tony Evers, a Democrat, poised to release the 2023-25 state budget on Feb. 15, 2023 deficits and surpluses in Wisconsin have again come to the forefront of the debate.
In his state of the state speech, Evers gave a bit of a preview of his budget, outlining more than $1 billion in new spending. Republicans, who control the Legislature, called his plans too expensive – and pledged to toss aside his budget and start from scratch.
All of this even as, in December, officials said the state’s budget surplus was at an all-time high.
In a Jan. 3, 2023 address to the state Senate, Senate Majority Leader Devin LeMahieu, R-Oostburg, credited action by former Gov. Scott Walker, a Republican, and the GOP-led Legislature with putting the state on a solid financial footing:
"In 2010, we inherited a multi-billion dollar deficit," he said. "Over the last 12 years we have focused on investing in core priorities, responsible budgeting, reducing the tax burden on the hard- working families of Wisconsin and passing meaningful legislative reforms. Today we are looking at a projected surplus approaching 7 billion."
We’re interested in the first and last part of the statement: Was there a "multi-billion dollar deficit" in 2010, and is it nearing $7 billion now?
As we examine the claim, we’ll also look at what other factors were at work.
Did the GOP inherit a multi-billion dollar deficit? Yes.In 2010, there was considerable debate around the size of the gap in the budget.
Then-Gov. Jim Doyle, a Democrat, argued the projected shortfall was as low as $1.5 billion. But his administration’s official budget statement suggested it was closer to $2.2 billion.
Here’s what we wrote in a Nov. 29, 2010 fact-check:
"Even Department of Administration Secretary Daniel Schooff, who signed the deficit report, says $2.2 billion – not $1.5 billion – is the best starting point because the Medicaid and patient fund monies likely will fall to the state to cover."
Indeed, the Legislative Fiscal Bureau had estimated that the shortfall could be as much as $2.7 billion. And University of Wisconsin-Madison economist Andrew Reschovsky estimated it could even reach $3.1 billion.
So, on the first part of the claim, LeMahieu is on target.