An Act Relating to: interest earned on coronavirus state and local fiscal recovery funds. (FE)
Summary
AB286 would require $172 million to be lapsed to Wisconsin’s general fund from a federal program revenue appropriation held by the Department of Administration. The bill is tied to interest earned on advanced coronavirus state and local fiscal recovery funds, and it directs that amount to be transferred on the date the bill becomes law. The Legislative Reference Bureau notes that, as of the end of April 2025, the state had reported about $171.5 million in interest credited to that appropriation, and the bill’s lapse amount is set slightly above that figure.
In practical terms, the bill would change how this specific pool of federal recovery-fund interest is handled in state finances by moving it into the general fund rather than leaving it in the federal program revenue appropriation. The measure relies on existing law governing lapses and miscellaneous receipts, and it affects the Department of Administration’s appropriation under s. 20.505 (1) (mb) and related fiscal accounting for coronavirus recovery funds. The bill does not create a new program or spending authority; it is a fiscal transfer measure.
The overall sentiment in the available record appears to be procedural and fiscally focused, with no committee transcript or recorded vote information provided. The bill was introduced by a large bipartisan group of legislators, suggesting broad sponsorship interest, but the absence of debate records limits insight into detailed support or opposition. Its eventual failure to pass pursuant to Senate Joint Resolution 1 indicates it did not complete the legislative process.
The main point of contention, based on the bill text and context, is the treatment of interest earnings generated from federal coronavirus relief funds. Supporters likely viewed the lapse as a way to capture unneeded balances for the general fund, while any opposition would center on whether those earnings should remain associated with the federal recovery-fund appropriation or be reserved for related uses. Because no transcripts are available, specific arguments from proponents or opponents are not documented in the record provided.
Impact
AB286 would amend state fiscal handling of interest earned on coronavirus state and local fiscal recovery funds by lapsing $172 million from the Department of Administration’s federal program revenue appropriation to the general fund. This would affect state budget accounting and the disposition of interest revenues credited to that appropriation, but it would not establish a new substantive program or alter eligibility for federal recovery funds. The bill primarily impacts the Department of Administration, state general fund revenues, and the bookkeeping treatment of federal program interest receipts under Wisconsin fiscal law.
Sentiment
The available record suggests a generally neutral-to-supportive fiscal posture, with the bill framed as a revenue transfer rather than a controversial policy change. Its broad list of bipartisan cosponsors indicates some cross-party interest, but there are no committee transcripts or vote tallies to show active debate. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, so whatever support it had was not enough to carry it through the full legislative process.
Contention
The central issue is whether interest earned on coronavirus state and local fiscal recovery funds should be retained within the federal program revenue appropriation or swept into the general fund. Supporters of the lapse would likely argue that the interest is available for general state use and should be captured for budgetary purposes. Opponents, if any, would likely question whether those funds should remain tied to the original federal recovery purpose or whether the state should redirect them to general revenues. No specific committee objections or floor arguments are available in the provided materials.