Bill Would Require Governor’s Administration to Follow State Law and Turn Over Millions in Covid-Era Interest Payments to State Treasury
MADISON – Senator Eric Wimberger (R-Oconto) released the following statement after introducing LRB-3000/LRB-3235, which would require Governor Evers and Department of Administration Secretary-designee Kathy Blumenfeld to hand over $170 million in earned interest on unspent federal Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) funds to the state’s General Fund:
“Governor Evers exploited federal Covid programs, turning interest payments on relief funds into his own $170 million slush fund. State law is clear: the Governor needs to return this slush fund to the people of Wisconsin. Every week he fails or refuses to do this, the Governor is violating state law.
This bill will force the Governor to follow the law and return millions in interest earnings to the people of Wisconsin. These funds should be spent in accordance with state law, and not hidden for the Governor to use to fund his pet projects.”
The State of Wisconsin was advanced $3 billion from the federal government through the Coronavirus State and Local Fiscal Recovery Fund to support the state during the pandemic. In 2023, the nonpartisan Legislative Audit Bureau discovered in its annual audit of the state’s finances that these funds collected significant interest, and have now ballooned to over $170 million in total value. Wis. Stat. § 20.906(1) requires that “all moneys paid into the treasury are to be credited to the general purpose revenues of the General Fund unless otherwise specifically provided.” Further analysis from the Audit Bureau and the state’s nonpartisan Legislative Council concludes that the Governor should hand these interest earnings over for use as general revenue, but he has refused to do so.
The cosponsorship memo for LRB-3000/LRB 3235 can be viewed here. Audit Committee co-chair Representative Robert Wittke will lead the bill in the Assembly.
