Wisconsin state agencies propose massive spending increases
Agency spending would increase by $8.2 billion over next two years
They say the only things that are certain in life are death and taxes, but the sayers better get busy editing that one because there’s one more certainty that comes to mind, at least in Wisconsin: Government spending will increase every year.
And it doesn’t matter which party is in power—Republican or Democrat. Every year state government spends more, and usually not just by the year’s inflation rate.
If proposed budgets submitted by state agencies for the 2023-25 biennium are any indication, the next two years won’t be any different. To be sure, agencies won’t get everything they are asking for, but, with a nearly $6.6 billion estimated budget surplus, they are likely to get huge chunks.
In a November 21 budget statement, the state Department of Administration (DOA) reports that, if all agency requests were approved, those requests alone would increase total all-funds spending from $44.165 billion in the current fiscal year to $47.669 billion in 2023-24 and to $48.856 billion for 2024-25.
That’s an increase of 7.9 percent in 2023-24 over this fiscal year, and an increase of 2.5 percent in 2024-25 over 2023-24. In total terms, in 2024-25, agencies would be spending 10.6 percent more than they were in 2022-23.
Over the course of both years of the biennium, under proposed budgets, agencies would spend $8.2 billion, or 9.3 percent, more than if agency spending remained at current levels during those two years.
In general fund expenditures (essentially, the amount taxpayers would pay)—again, only if all agency budget requests were approved—agency spending would increase from $19.665 billion to $20.808 billion for fiscal year 2023-24 and to $22.148 billion in fiscal year 2024-25. That’s an increase of 5.8 percent in 2023-24 over the current year and an increase of 6.4 percent in fiscal year 2024-25 over 2023-24.
Overall, general fund (GPR) agency spending would be 12.6 percent more in 2024-25 than they spent in 2022-23. Total agency GPR spending over the biennium would amount to about $3.7 billion, or 9.4 percent, more than if current spending levels were maintained.
That’s a whole lot of money and a whole lot of problems. Let’s take a look…