Budget office spells out large 2025 transfers to cover WRS and Social Security overruns; committee presses for better forecasting
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Summary
Budget staff told the Finance Committee that transfers from the wages supplement fund totaling roughly $4.13 million are needed to cover 2025 overages for the Wisconsin Retirement System (WRS) and Social Security; members asked for improved forecasting and warned the trend could recur.
The Finance & Personnel Committee heard Feb. 4 from the budget office about two fund transfers to address 2025 overages: roughly $869,105 for retirement system (WRS) costs tied to hires enrolled after Jan. 1, 2024, and about $3,000,258.56 for Social Security expenditures reflecting higher actual salary outlays.
Brian Reiner of the budget office said the 2025 wages supplement fund had about $24.3 million; after the proposed transfers it would remain above $20 million. He warned that both WRS and Social Security lines have proved volatile since the transition of new hires into the WRS and that projections for 2027–2030 are being updated.
Committee members asked whether the budget office will take a more conservative approach to future estimates to avoid recurring transfers. Budget staff said they are intensifying modeling and projections for 2027 and beyond and will coordinate with the Employee Retirement System to refine assumptions.
Committee members also asked how much of the police department retro payments would be borne from the fund; budget staff estimated the police retro total at approximately $26.3 million and said they would seek offsets but likely need roughly $18–19 million from the wages supplement fund.
What happens next: Budget office will produce updated projections for 2027–2030 and continue coordination with ERS; committee requested follow‑up discussion of long‑term sustainability and whether the wages supplement assumptions should be made more conservative.