Focus Newsletter State budgets in 2012: How do we stack up?
December 28, 2011 • Vol. 2011 No. 26
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- Summary
- Press Release
Wisconsin enacted its state budget for fiscal year 2012 last summer. But a recent national report offers the first opportunity to compare our general fund budget with those of other states. Although we slowed our annual spending growth rates from 5.8% in 2011 to 4.4% in 2012, they still exceeded the 50-state averages of 4.0% and 2.9%, respectively. Continuing the practice of many years, Wisconsin’s budget reserves are among the smallest of the 50 states.
Dale J. Knapp or Todd A. Berry
608-241-9789
wistax@wistax.orgState Spending Increases Here Exceed National Average in 2011 and 2012
Wisconsin Budget Surplus Ranks Among Nation’s Lowest
download press releasee-mail this link to a friendMADISON—State spending increases in Wisconsin exceeded national averages in both 2011 and 2012, while budget reserves remain among the smallest in the nation. According to a new report from the Wisconsin Taxpayers Alliance (WISTAX), “State budgets in 2012: How do we stack up?,” state spending here rose 5.8% in 2011 and was budgeted to grow 4.4% in 2012. National averages were 4.0% and 2.9%, respectively.
While only 13 states increased spending more than Wisconsin in 2011, 25 did so in 2012. Some of the largest states (e.g., California, Florida, Michigan, and Pennsylvania) reduced their budgets in 2012.
Although total spending here—and nationally—was up, postsecondary education, public assistance, and K-12 education were most often targeted for budget cuts in 2012. Wisconsin was one of 36 states either cutting or freezing spending for public colleges and universities, one of 26 states either cutting or freezing public assistance, and one of 20 states to reduce or hold the line on K-12 education spending.
According to WISTAX researchers, medical assistance (MA or Medicaid) was the only budget area to see widespread growth. Only four states cut MA, while eight imposed freezes. Thirty-eight states, including Wisconsin, increased MA spending, often dramatically. For all 50 states combined, MA spending climbed a net $19.4 billion, an amount so large that it more than accounted for all state budget growth from 2011 to 2012.
Lawmakers here continued the state’s recent tradition of leaving little money in reserve, WISTAX said. In fact, during 2010-12, Wisconsin had one of the nation’s smallest general fund balances, at 0.6% of spending, due in part to never budgeting for a rainy-day fund. Only Arizona, Arkansas, and Washington had smaller balances as a share of spending during that time.
A free copy of the Focus newsletter, “State budgets in 2012: How do we stack up?,” is available by visiting www.wistax.org; e-mailing wistax@wistax.org; calling 608.241.9789; or writing WISTAX at 401 North Lawn Ave., Madison, WI 53704-5033. Now in its 80th year, WISTAX is a nonpartisan, nonprofit research organization.