Cash infusions have kept it afloat, but deficit projections remain

As a candidate for governor in 2010, Scott Walker pledged to quickly find ways to keep the state Veterans Trust Fund, which finances transitional housing, county veterans service offices, veterans cemeteries and other services, financially viable.

With the 2011-13 state budget, Walker's first as governor, $5 million in general fund tax dollars was allocated to the trust fund and another $416,800 was added with a one-time transfer.

The state Department of Veterans Affairs criticized the governor's plan, saying it did not address the Veterans Trust Funds structural deficit and "does not provide additional support to ensure the solvency" of the fund.

Indeed, the nonpartisan Legislative Fiscal Bureau projected the fund would be more than $20 million in the hole by mid-2015.

With his second budget, for 2013-'15, Walker provided the trust fund another $5.3 million in general fund revenue. That budget also allows any surplus revenues from the state's veterans homes to help pay for programs funded by the Veterans Trust Fund.

Laurel Patrick, the governor's secretary, argued that Walker's actions show he has kept his pledge. She cited a Legislative Fiscal Bureau memo that says various steps taken by Walker are aimed at reducing shortfalls in the trust fund. But that memo also says expenditures would exceed revenues such that there would be a shortfall entering the 2015-'17 biennium.

Moreover, Democratic lawmakers have raised concerns about a June 2014 report from the state Department of Veterans Affairs that projects deficits in the trust fund within the next several years.

The report said the fund had a positive balance of $15.9 million in 2013, but that would decline to  $2.55 million in fiscal 2015. From there, growing deficits are projected -- from $8.57 million in fiscal 2016 to $13 million by 2019.

In summary, Walker has given the trust fund some cash infusions and allowed for surplus revenues from the state's veterans homes to help shore up the trust fund. But within a few years, more deficits are projected.

We rate this promise a Compromise.