Since the start of the COVID-19 pandemic, many have been wondering what its effects would be on our state’s budget._ Concerns were raised that Wisconsin might run a deficit for the first half of the state budget, which ended June 30, 2020. Because of careful legislative budgeting over the past decade the State Annual Fiscal Report recently released showed that the state would end the first half with a surplus and that the state would also make yet another deposit into Wisconsin’s rainy-day fund.

Starting this last legislative session, one of my top priorities was to make sure Wisconsin would pass a budget that not only reflected the values of Western Wisconsin, but that would be fiscally responsible to the taxpayers of the state._ These policies were pillars in the last budget, and were reflected in the budget from the Legislature the governor signed into law. Wisconsin, thankfully, is in better shape going forward into the next state budget as we continue to address the effects of COVID-19.

This good news bears contrast with the original budget that was proposed by the governor to the legislature which would have left the state in a much different situation._ That budget included no deposit into the state’s rainy-day fund and increased taxes and fees by more than $1 billion._ It would have also meant the starting point for the upcoming budget in 2021 would have been $2 billion in the red, before adding in the current economic climate.

Because of the legislature’s prudent fiscal management, taxpayers were also able to receive an income tax cut last year. Since 2013 the cumulative savings from reductions in the state income tax for the median family is more than $2,000. That is $2,000 of your hard-earned money staying with you and not being spent in Madison.

This progress has not gone unnoticed._ A report from the Wisconsin Policy Forum found that Wisconsin’s tax burden (the share of state and local taxes as a share of income) reached its lowest level as far back as their records go, 1970. They also noted that net property taxes were also reduced.

There is no doubt that the next state budget will contain challenges, but one thing is for certain: Wisconsin will be in better shape to weather this storm thanks to our Legislature, which eliminated the spending and tax increases originally proposed by the governor.