The incoming Democrat trifecta in Wisconsin wants to spend a lot of money. Out of the gate, their plan to repeal Act 10 and right-to-work will cost the state at least $2 billion. Add to that "free" universal childcare, expanded Medicaid (maybe), and other initiatives and the bill gets very expensive, very quickly. While the state has roughly $3 billion in surplus and another $2.5 billion in its rainy day fund, that will not be enough to cover massive spending for long.
There are rumors — and they have not been verified yet — that Democrats are discussing taking money out of the Wisconsin Retirement System (WRS) to pay for some of that spending binge. The WRS pays the pensions of public employees in Wisconsin.
There are rumors being shared by some well-connected sources that the Democrats are discussing taking money out of WRS in order to pay for some of their spending binge. I'm not sure if that's even possible, but the Thompson admin tried messing with WRS and was shot down by…
— WI Conservatives (@ConservativesWi) November 10, 2026
It is one of, if not the, best-funded public pension systems in the country. As of September 30, it had nearly $160 billion.
Even for Ds, this would be one helluva move... probably a career-limiting one. Imagine being a teacher or other public employee who paid into the retirement system only to have it raided by the ones they probably voted for.
— Jason Szemborski (@JasonSzemborski) November 10, 2026
According to Dan Lennington with the Wisconsin Institute for Law and Liberty (WILL), this is unconstitutional and prohibited under Art 1, Section 13.
No, you can't do this: 1987 Act 27, struck down by Wis Retired Teachers v. ETF (1997).
— Dan Lennington (@DanLennington) November 10, 2026
Taking money out of WRS is an unconstitutional taking under Art. I, section 13. https://t.co/E8JKnd4U5r
But with a liberal majority on the state's Supreme Court, could that ruling be revisited?
LOL. As though the current Court will be worried about sweeping such a pesky precedent aside.
— Adam Jarchow (@AdamJarchow) November 10, 2026
There's also the possibility they take the money, and let it play out in court for another administration to deal with down the road. Republican Gov. Tommy Thompson took money out and was forced to repay it with interest nine years later.
It is illegal for the Wisconsin Legislature, or Governor, to raid the WRS for state projects or funding.
— Kid Riles (@kid_riles) November 10, 2026
Ask Tommy Thompson, he did it, took $10 million, 9 years later the state was forced to pay WRS $215 million in principal, interest, and attorney fees. https://t.co/CBzhltAeIA
It would be a bold, risky move, since public-sector employees are big Democrat voters.
Even for Ds, this would be one helluva move... probably a career-limiting one. Imagine being a teacher or other public employee who paid into the retirement system only to have it raided by the ones they probably voted for.
— Jason Szemborski (@JasonSzemborski) November 10, 2026
But you can see where the Democrats might make this calculation: take money from the WRS so they don't have to raise taxes, then they can say they "delivered" on affordability without raising taxes.
I have to agree. They are more likely to raise taxes. But what if they could find a way to borrow from WRS and pay it back later by, say, taxing the “rich”? I very much hope @DanLennington is right that this is all impossible and much ado about nothing.
— WI Conservatives (@ConservativesWi) November 10, 2026
The alternative is massive tax increases on every working Wisconsinite.
Well, the @WisDems are going to have to find a way to pay for all their liberal nonsense. Here we go. https://t.co/3BGr1n5OSa
— Gregory Jon (@gregoryjon) November 10, 2026
Once again, it's just a rumor from some state employees.
To reiterate, this is a rumor shared by some state employees. I find it preposterous and impossible to imagine, if for no other reason than politically it would be juggling hand grenades for Democrats. https://t.co/NvjOPMjweL
— WI Conservatives (@ConservativesWi) November 10, 2026
Nothing has been verified yet, but given how much Democrats want to spend in Wisconsin, that money has to come from somewhere. This would be unconstitutional, but as Gov. Thompson showed, you can take out a nine-year loan and leave a future administration to pay it back after it goes through a years-long legal process.
We'll see what happens.
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