The state of Wisconsin’s debt has continued to fall from its height during the Great Recession, and when adjusted for inflation is lower than at any point in at least 25 years. That’s according to a new report from the Wisconsin Policy Forum.
As of December 2023, the state had $11.14 billion in total outstanding debt, according to a state Department of Administration report. That’s down 2.6 percent, or more than $296.3 million, from the prior year before adjusting for inflation.
“On an inflation-adjusted basis, that represents the lowest debt level for the state in at least a quarter-century,” the report states.
The share of the state’s main tax revenue going to debt payments fell below 2.7 percent in both 2021 and 2022, its smallest share since 1984 excluding years when the state skipped making debt payments because of budget challenges. The state has long sought to keep annual debt payments lower than 4 percent.
The share of state transportation fund revenues going to debt payments climbed from 7 percent in 2002 to 18.9 percent in 2019. The state projects that share to fall to 16.2 percent by 2025, due to increases in vehicle registration and other fees, as well as a decrease in new transportation borrowing.
“Going forward, transportation debt will likely remain an ongoing concern for Wisconsin unless lawmakers and Gov. Tony Evers identify additional revenues for the transportation fund, make the general fund transfers permanent, or sharply scale back road projects,” the report says. “None of these options are politically appealing, making this an issue to watch in the next state budget.”