Debt in Wisconsin

Contact: Todd A. Berry or Dale Knapp
608.241.9789 or wistax@wistax.org
July 2, 2008

Wisconsin Ranked 10th in State-Local Debt Service
Up from 21st in 2000

MADISON—Wisconsin state and local governments devoted a larger share of state personal income to debt service in 2006 than all but nine other states, according to policy researchers at the nonpartisan Wisconsin Taxpayers Alliance (WISTAX).

Drawing on new U.S. Census figures, WISTAX noted that the Badger State has traditionally been a low debt state. In 1960, it ranked 45th on debt service; as recently as 2000, the state ranked 21st.

When state and local debt service were examined separately, WISTAX found that state government ranked 13th in the amount of personal income spent on debt service (0.53% vs. 0.37%, U.S. average), while all local governments combined ranked 21st (0.40% of income), almost 14% below the national norm (0.47%).

"This is somewhat surprising," WISTAX President Todd A. Berry observed. "State government here accounted for 57% of debt service, even though it did only 42% of all spending."

In a parallel analysis of Wisconsin debt levels, WISTAX found that state government had the most debt per person in 2006 ($1,619), followed by cities ($1,439) and villages ($1,231). With fewer capital needs, counties and towns lagged. Schools reported $960 per capita of debt in 2006-07, or $6,002 per student.

Debt per student varied considerably by school district in 2006-07. Two union high districts—Wilmot ($35,773) and Northland Pines ($27,769)—had the most debt. Of the 369 K-12 districts, Monona Grove ($22,534) led. Overall, 10 districts had debt of $20,000 or more, and another 15 fell between the $15,000 to $20,000 range. Of all 426 districts, 60% (254) reported per-student debt between $2,500 and $10,000. Five districts had no debt: Boscobel, Dover #1 (K-8), Gilmanton, Washington (Island), and White Lake.

Now in its 76th year, the Wisconsin Taxpayers Alliance is a nonprofit, nonpartisan group dedicated to policy research and citizen education. For a copy of the WISTAX report "Yellow Light Flashing? Debt in Wisconsin," write: 401 North Lawn Ave., Madison, Wisconsin 53704; e-mail, wistax@wistax.org; or call 608.241.9789. o

(Editors' Note: An electronic version of this column is available at www.wistax.org.)

The Wisconsin Taxpayers Alliance, founded in 1932, is the state’s oldest and most respected private
government-research organization. Through its publications, civic lectures, and school talks, WISTAX aims to improve Wisconsin government through citizen education. Nonprofit, nonpartisan, and independently funded, WISTAX is not affiliated with any group—national, state, or local—and receives no government support.