Report: Wisconsin’s financial condition worsened despite revenue gains
(The Center Square) – Wisconsin ranks 22nd and was given a “B” grade with $1,000 of taxpayer surplus per taxpayer in Truth in Accounting’s Financial State of the States report.
Each year, the nonprofit group looks at the overall government finances in a state and measures the amount each state has on hand and owes in net pension liability compared to promised benefits.
The top states noted in the report are North Dakota with a taxpayer surplus of $55,600 and Alaska at $55,100. The lowest “sinkhole states” are New Jersey (negative $42,500) and Connecticut (negative $44,300).
Wisconsin was one of 22 states that released its finances on time, a week before the 180-day deadline.
Wisconsin was one of just five states to have its financial condition deteriorate from last year despite $3.1 billion of reported revenues more than expenses.
“Wisconsin experienced a worsening of its financial condition primarily because of its pension value measurement date,” the report said. “While it still has enough money to pay its bills, and maintains a Taxpayer Surplus™ of $1,000, this development serves as an example of how pension reporting, at least on paper, can impact a government entity’s financial standing.”
The pension liability for the Wisconsin Retirement System was calculated on Dec. 31, 2022, which resulted in an unrealized loss of 7% on pension investments, meaning there was an increase in the state’s net pension liability of $4.3 billion, exceeding the state’s annual revenue gain.
