January 23, 2026

By Lane Kimble

A better than expected forecast may mean a somewhat easier time for lawmakers to close a more than $1 billion transportation funding shortfall in the next state budget.

Late last week, the Legislative Fiscal Bureau announced the state’s General Fund balance is projected to be $2.4 billion by the end of this current budget cycle.

That is $1.5 billion more than what was projected last summer.

Most of the projected increase comes from larger individual and corporate tax collections from a growing economy, which the LFB expects to continue through 2026.

The state Legislature and Gov. Tony Evers have used large one-time General Fund transfers over the past several budgets to fill Transportation Fund shortfalls, including $580 million in 2025 and $555.5 million in 2023.

Those transfers, coupled with new funding sources such as fees on electric vehicles and registrations, have allowed state and local infrastructure programs to grow and Major/Southeast Mega projects to stay on schedule.

Evers celebrated the LFB report, calling on lawmakers to provide property tax relief.  Republican Joint Finance Co-Chairs Sen. Howard Marklein and Rep. Mark Born urged caution, adding “we must be careful when committing to ongoing spending using one-time money.”

A stagnant gas tax (WisDOT’s primary source for transportation construction) hasn’t increased since 2006, while other revenue streams have also flattened or declined.

WTBA remains committed to finding a long term, sustainable transportation funding solution, recognizing one-time General Fund transfers won’t always be available.