Wisconsin finished the last fiscal year with a $3.3 billion surplus in its general fund, exceeding estimates by $350 million.

The state also has a $2.1 billion balance in its rainy day fund, an amount that has grown by $1.75 billion since Gov. Tony Evers took office in 2018.

Recent budgets, however, have been lower than what Evers proposed as the state Legislature has made consistent cuts to Evers’ plan.

“This is damn good news, Wisconsin,” Evers said in a statement. “We’ve worked hard over the last eight years to cut taxes for working families and seniors, deliver historic investments in our kids and schools, expand high-speed internet, fix our roads and bridges, support veterans and farmers, and make child care and healthcare more affordable—and we did all of that while still saving taxpayer dollars where we could, paying down our state’s debt, and staying well within our means.”

The state’s Annual Fiscal Report showed that Wisconsin collected 3.4% more in taxes last fiscal year and were 2% above estimates.

What the state does with the surplus next has been heavily debated since the Senate voted down a proposal that included an income tax refund, an end to income tax on overtime and tips and includes $300 million in special education funding along with $300 million in general school aid that would replace property tax funding for the same.

All Senate Democrats opposed the bill and three Senate Republicans voted against it.

Republican candidate for governor Tom Tiffany has promised to cut state income taxes by 10% for families earning less than $150,000 annually along with eliminating taxes on tips and overtime and returning a state surplus to voters.

Democratic candidate David Crowley has not vowed to do the same, saying that instead he will push for increased state funding for schools that could lead to lower local property tax payments for residents.