Wisconsin's General Fund Records Positive Balance

Friday, December 23rd, 2022 -- 9:01 AM

Gov. Tony Evers announced for the third consecutive year the state’s General Fund recorded a positive balance at the end of the 2021-22 fiscal year using Generally Accepted Accounting Principles.

The state’s Annual Comprehensive Financial Report shows the state’s GAAP balance increased by nearly 300 percent from a positive balance of $1.2 billion at the end of the 2020-21 fiscal year to a new record high of $4.6 billion at the end of the 2021-22 fiscal year.

In addition to the state’s increasing General Fund balance, the report also notes that the state’s Transportation Fund balance increased by $275 million, or more than 26 percent, to $1.3 billion at the end of the 2021-22 fiscal year.

Under GAAP, the state’s total long-term debt decreased by over $365 million, which indicates the state repaid existing debt in excess of new debt being issued in the 2021-22 fiscal year.

The significant increase in the state’s positive GAAP general fund balance reflects the continued improved financial position of the state in the 2021-22 fiscal year that resulted from greatly expanded budget reserves, increasing ending fund balances, and excellent liquidity.

Similar to last year, it is likely that the reporting of the state’s $4.6 billion GAAP general fund balance will be well received by investors. The Department of Administration has published the state’s ACFR since 1990.

The report is prepared on a GAAP basis. The adoption of GAAP by the state of Wisconsin for financial reporting purposes serves to present the state’s financial position in a business-like manner.

GAAP reporting accurately measures financial operations, fully discloses financial positions, provides an externally accepted presentation, and provides information for financial managers.

The state of Wisconsin ACFR has received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) each year since 1996.

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