Wisconsin surplus becomes dividing issue in governor's race

A projected Wisconsin budget surplus is emerging as a point of disagreement between Republican gubernatorial candidate Tom Tiffany and Democratic candidate David Crowley.

Preliminary state figures showed $450.8 million more in 2025-26 tax collections than previously projected. Depending on final spending and revenue calculations, the state's balance at the end of the 2025-27 biennium could approach $3 billion. Those are projections, not finalized surplus figures.

Competing proposals Tiffany pledged to return the entire projected surplus to taxpayers and pursue lasting tax relief. Crowley emphasized using available resources to support communities and criticized federal policy choices he associates with Tiffany. Both positions were presented during the campaign.

Individual income taxes accounted for $231.1 million of the additional collections compared with the Legislative Fiscal Bureau's January forecast. Corporate income taxes added $83.9 million and sales taxes $79.9 million above those projections.

The Department of Revenue did not identify a single reason for higher receipts. Fiscal officials noted that collection trends can have multiple causes.

Lawmakers had previously failed to approve a proposed $1.8 billion surplus agreement. State officials expected more complete numbers in the annual fiscal report scheduled for mid-October. The final amount and any policy action remained undecided at the time of the source article.