Wisconsin lawmakers advanced a significant $1.8 billion plan aimed at boosting school funding and providing tax relief, approving the package in a party-line vote within the powerful Joint Finance Committee. The proposal emerged from negotiations between Democratic Governor Tony Evers and GOP legislative leaders, reflecting a bipartisan effort to allocate most of the state’s projected budget surplus.
The current surplus estimate stands at approximately $2.5 billion, but some Democrats questioned the prudence of using a large portion of this forecasted amount. State Senator Kelda Roys, who also campaigns for governor, described the surplus as a projection rather than guaranteed cash on hand, warning that external economic factors, including federal policy shifts, could alter the financial outlook. Conversely, Republicans emphasized robust tax collections exceeding expectations earlier in the year, arguing this trend supports the use of the surplus to aid residents facing economic challenges.
The allocation includes over $600 million dedicated to K-12 education, with more than half earmarked for increasing special education reimbursements. An additional $300 million will bolster the state's general aid formula, which indirectly reduces property taxes by shifting more fiscal responsibility from local taxpayers to the state. Moreover, $50 million will target property tax relief linked to the technical college system.
Tax relief efforts form a substantial part of the plan: lawmakers proposed distributing about $850 million in tax rebate checks and eliminating state income tax on tips and overtime wages to provide immediate financial relief for workers.
This spending package faces political contention, especially among candidates vying for governor. While former Wisconsin Economic Development Corporation CEO Missy Hughes expressed cautious endorsement, describing the plan as timely support for school funding and tax relief, most Democratic candidates voiced criticism regarding its approach and transparency. Meanwhile, the GOP gubernatorial candidate also questioned the process behind the deal, labeling it a “backroom” agreement.