State Projected to End Current Biennium in the Black; Next Biennium in the Red

The Evers administration announced some okay news for the state’s fiscal situation. The state Department of Administration released updated estimates projecting the state will finish the current 2019-21 biennium with a gross balance of $1.2 billion.


DOA also projects the state will take in $1.35 billion in new revenue over the course of the 2021-23 biennium. However, even with the ending surplus and projected revenue increase if every agency’s 2021-23 budget request was to be approved, the state would have a $1.2 billion deficit at the end of the 2021-23 biennium.

Historically, it is very unlikely that every state agency will receive funding for their budget requests. The DOA Secretary notes the two main drivers included in the agency budget requests: $1.6 billion in new GPR requested by the Department of Public Instruction and $597 million for cost-to-continue for the Medicaid program. The cost-to-continue Medicaid funding requested by the Department of Health Services (DHS) assumes the state expands Medicaid under the ACA. If Medicaid expansion does not occur, the cost-to-continue number increases by another $588 million.