(The Center Square) – A new report says Wisconsin is in its best fiscal position in decades.

The Wisconsin Policy Forum released its latest report this week. It looks at the state’s debt, budget health, general fund reserves and what the future may hold for the state.

“Overall, the state’s finances ended 2023 in outstanding fashion. Wisconsin has improved its fiscal condition substantially since the Great Recession years, a period marked by severe budget challenges in which the state raised taxes, cut aid to schools and local governments, delayed debt payments, and decreased benefits and take-home pay for state and local workers,” the report noted.

The Policy Forum’s report makes a special note that Wisconsin’s long-term debt, or pension debt, has fallen dramatically since the Republican reforms of 2011.

“The state’s long-term liabilities grew as a share of assets during the 2000s, peaking at 41.2% of assets in 2011. Since then, they have fallen as a share of assets to 30.2% in 2023. Though that was up slightly from the prior year’s record low of 28.4%, it was still one of the lowest percentages in our two decades of data,” the authors wrote.

As for Wisconsin’s other debt, the report says Wisconsin’s debt payments are at their lowest level in decades, Wisconsin’s net assets are rising, and Wisconsin has more than enough cash on hand to pay its bills.

“Four years after the arrival of COVID-19, the state of Wisconsin’s finances are the strongest on record, thanks to federal relief aid and the actions of state leaders. From ample cash reserves to low debt, the state measures up well on key fiscal metrics,” the report states.

But there is a warning as well.

“But recent decisions to cut taxes and increase spending will reduce some of these advantages this year, leaving policymakers with important questions to consider in the next state budget,” the Policy Forum added.

The Policy Forum isn’t sure what the long-term effects of Wisconsin’s most recent tax and spending cuts will be. Those cuts may drop the state’s ranking in certain debt-related categories, but the Policy Forum said Wisconsin should remain on solid financial footing for a while to come.

“Over the next year the state’s finances should remain relatively strong overall, particularly with respect to debt levels and other long-term metrics,” the report states in its conclusion. “The progress the state has made over the past decade is the result of a strong economy and federal pandemic assistance as well as many decisions by state elected officials of both parties, including some that were painful. This newfound strength better positions the state to take advantage of future opportunities and weather potential storms. Holding onto these hard-won gains, however, will require both vigilance and prudence from state leaders as well as some measure of good fortune.”