The state’s financial books show that Wisconsin ended the last fiscal year with a $2.15 billion deficit, under accounting principles that are standard for private companies, according to a report that the Wisconsin Taxpayers Alliance released Friday.
State Budget Director David Schmiedicke said the budget was balanced as required under state law, and that the difference between the two numbers is a matter of timing – how certain costs are accounted for and when they are paid. He added that other states run GAAP deficits, depending on the year.
The $2.15 billion deficit – nearly $400 for each of Wisconsin’s 5.5 million residents – is about what the state spends to run correctional institutions or the University of Wisconsin System over a two-year budget.
It was outlined this month in the state’s Comprehensive Annual Financial Report, which must be filed every year, like a corporation’s annual report.