Walker Administration Delays $101M Debt Payment

Gov. Scott Walker’s administration has delayed repaying $101 million in debt, a move that will increase the state’s interest costs in years to come.

It’s the second year in a row that the administration has taken such a step. Last year, Walker delayed repaying $108 million to balance the books.

Department of Administration spokeswoman Laurel Patrick called the move “a prudent financial management tool that takes advantage of historically low interest rates.”

But Democratid state Rep. Gordon Hintz of Oshkosh, who sits on the Legislature’s budget committee, said steps like these wouldn’t be necessary if the state’s fiscal house was in order.

“We’re continuing to dig ourselves a hole,” Hintz said. “I think it’s a sign that we can’t afford the tax cuts that we passed and maybe there’s some concern about future revenue being there.”

Governors from both parties have delayed debt payments to balance the books, though the tactic is typically used more during bad financial times. Such moves carry extra costs for taxpayers. The nonpartisan Legislative Fiscal Bureau says this latest instance will likely increase interest costs on the borrowing by roughly $2.3 million.