Wisconsin General Fund balance falls $1.299 billion in FY2026
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Wisconsin’s undesignated General Fund balance fell about $1.299 billion during FY2026, ending the year at $3.307 billion. A separate account, the Budget Stabilization Fund, closed at a record $2.0709 billion.
The Wisconsin Department of Administration’s State Controller’s Office dated its FY2026 Annual Fiscal Report Oct. 15. The report covers the fiscal year that ended June 30, 2026, and compares actual financial results with the state budget on a budgetary basis. It is not the state’s GAAP financial statement.
The General Fund balance was $4.6056 billion at the start of the fiscal year. The report records the ending amount as an undesignated balance; it does not appropriate that balance for new spending or assign it to a particular use. The Budget Stabilization Fund is separate from the General Fund.
Tax collections exceeded the estimate
General-purpose-revenue tax collections reached $23.1322 billion, an increase of $769.3 million, or 3.4%, from FY2025. Collections were also $450.8 million above the report’s estimate of $22.6814 billion.
General-purpose-revenue expenditures, excluding transfers, totaled $22.3018 billion. That was $150 million below the $22.4518 billion budgeted allocation, but 5.6% higher than spending in FY2025.
| Measure | FY2026 result | Comparison |
|---|---|---|
| General-purpose-revenue taxes | $23.1322 billion | Up 3.4% from FY2025; $450.8 million above estimate |
| Expenditures, excluding transfers | $22.3018 billion | Up 5.6% from FY2025; $150 million below budgeted allocation |
Local assistance accounted for $9.6956 billion, or 43.5% of general-purpose-revenue spending. Aid to individuals and organizations totaled $6.8677 billion, or 30.8%. The report puts local assistance’s share below its 44.8% share in FY2025, while the share for aid to individuals and organizations rose from 30.1%.
Among the largest general-purpose-revenue programs, school aids totaled $7.7224 billion, Medical Assistance spending was $4.8115 billion, and correctional services spending was $1.7833 billion.
| Program | FY2026 spending | Change from FY2025 |
|---|---|---|
| School aids | $7.7224 billion | Up 3.5% |
| Medical Assistance | $4.8115 billion | Up 7.3% |
| Correctional services | $1.7833 billion | Up 6.4% |
The average daily population in the state adult corrections program was 23,920, compared with 23,451 in FY2025, a 2.0% increase. The report attributes the rise in corrections spending to population growth and higher operating costs, including salaries, inmate health care and staffing new correctional units.
Automatic transfers and the next financial report
The report says no additional automatic transfers of excess revenue will be made until the General Fund balance is below 5% of estimated general-purpose-revenue expenditures for the fiscal year. That condition describes the transfer rule; the annual report itself does not authorize a new allocation of the ending balance.
The state expected to issue a separate Annual Comprehensive Financial Report, prepared under generally accepted accounting principles, in December 2026. That report is distinct from the budgetary-basis figures in the FY2026 Annual Fiscal Report.
Sources
- FY26 Annual Fiscal Report (Budgetary Basis), Wisconsin Department of Administration, State Controller’s Office
- Annual Fiscal Report (AFR), Wisconsin Department of Administration
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