The resilience of Wisconsin’s economy in recent years and the state’s proven ability to adjust its budget when faced with revenue fluctuations supports its AA rating, analysts said in a recent state review from Standard & Poor’s.
The report said the state’s ability to make budget corrections midyear when faced with a revenue decline is key given low but adequate general fund reserves.
“We expect that the state’s current trend of fiscal discipline, which has significantly reduced structural budget deficits in the past several years, will continue and that Wisconsin will act purposefully and in a timely manner to address future budget imbalances,” analyst John Kenward wrote in the report.
The state’s general obligation credit was upgraded in mid-2008 by Standard & Poor’s. Kenward cited the state’s success in managing its finances with narrow balances and the positive advances over the last two biennial budgets to bring down an ongoing structural deficit, reduce the use of one-time revenue, and put a first-time deposit into a reserve.
