Has Coverage Increased for the Wisconsin Public Deposit Guarantee Fund?
By Scott Birrenkott
The short answer is yes, but before we discuss that further, it’s worth addressing another question: what is the Wisconsin public deposit guarantee fund?
Wisconsin Chapter 34 establishes a public deposit guarantee fund which exists for the repayment of losses by public depositors in the event of a public depository institution’s failure. A public depositor is an entity such as a county, city, village, and town, among others. The fund includes a static amount, meaning it will not be refunded should it run out. The Department of Administration manages the fund, and the Wisconsin Department of Financial Institutions (DFI) provides a listing of the balance.
The public deposit guarantee fund covers a single public depositor up to $1,000,000. This amount is in addition to any Federal Deposit Insurance Corporation (FDIC) coverage. Note, however, that it isn’t broken into categories or separate coverage like FDIC insurance is. The $1,000,000 amount is an increase from $400,000 as a result of 2023 Wisconsin Act 128, which is the recently enacted WBA-supported financial institutions modernization bill.
This increase will mean that public depositors will have increased coverage for their deposits at Wisconsin financial institutions. Because many public depositors can only make deposits dependent on coverage amounts, this is a significant change. While the increase is a great opportunity for public depositors, do note that coverage is a fact-specific determination. Meaning, if a depositor has specific questions as to coverage, such as assurances as to precise amounts, they may need to consult with their attorney.
For additional information see the links below:
- The public deposit guarantee is established by Wis. Stat. section 34.08
- The current balance information as of April 1, 2024, can be found on DFI’s website
- 2023 Wisconsin Act 128
If you have any questions regarding Wisconsin’s public deposit guarantee fund, or 2023 Wisconsin Act 128, please contact WBA legal at wbalegal@wisbank.com or call us at 608-441-1200.
Birrenkott is the WBA director – legal
