Wisconsin budget deal debate, finance committee advances proposal
Budget debate, committee advances proposal
The Wisconsin Legislature's finance committee voted to advance a bipartisan budget that would send a rebate to taxpayers and boost money for schools.
MILWAUKEE - The Wisconsin Legislature's finance committee on Tuesday voted to advance a bipartisan budget deal that would send a rebate to taxpayers and boost money for schools.
Bipartisan budget deal
The backstory:
Democratic Gov. Tony Evers, Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Devin LeMahieu (R-Oostburg) – none of whom are seeking reelection – reached the deal after months of negotiations.
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The spending plan would use a portion of the state's projected budget surplus to issue $300 refund checks for single tax filers and $600 for married couples, filing jointly – but there's no guarantee that is what you'd get. If you owe the state less than that amount in income tax, you will get up to the total of your tax bill.
The bipartisan deal also boosts money for special education and gets rid of state income tax on tips and overtime.
Capitol in Madison
Party-line vote
What they're saying:
On Tuesday, just a day after the budget deal was announced, a key committee voted to fast track it. The legislature's powerful finance committee debated and then approved the proposal. Democrats in committee voted "no," while Republicans voted "yes."
"It fails our schools. Our schools aren't going to be getting the resources fully that they need," said State Rep. Tim McGuire (D-Kenosha). "They have been struggling for 15 years under legislative Republican leadership."
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"The bill gives money to special education, right? This bill gives lasting property tax relief to taxpayers of Wisconsin. The bill gives lasting income tax relief to the taxpayers of Wisconsin," said State Rep. Mark Born (R-Beaver Dam).
While Democratic lawmakers opposed the deal, the governor's office estimated the impact of the deal. For example, Germantown would see $1.2 million more for special education, and Milwaukee Public Schools would see a $33 million bump for special education.
What's next:
A vote in the full Senate and Assembly is expected to come later this week. There are questions about whether there are enough votes to pass it.
Wisconsin budget surplus: Bipartisan package invests $600M in schools
Gov. Tony Evers and Republican leaders in Madison reached agreement on a proposal to use a portion of the state’s surplus to invest in Wisconsin's K-12 schools and provide property tax relief.
Projected budget surplus
By the numbers:
Wisconsin closed the last fiscal year with $4.6 billion in the state’s general fund, which functions like the state’s checking account, and $2 billion in the "rainy day" fund, which is effectively the state’s savings account.
Earlier this year, the nonpartisan Legislative Fiscal Bureau estimated that the state would end the biennium with about $2.37 billion, a projection that is more than $1.5 billion above the projected net balance from the enacted 2025-27 biennial budget.
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The deal negotiated by all parties includes the following:
- The largest increase to the state’s special education reimbursement rate in state history to attain 50%, investing over $600 million in Wisconsin’s K-12 schools, on top of the already historic nearly $1.4 billion provided in the 2025-27 Biennial Budget, including $300 million in property tax relief through general school aids.
- Provides an additional $50 million in property tax relief for Wisconsinites statewide in addition to the more than $300 million in general school aids.
- Eliminates the income tax on cash tips and overtime income for Wisconsin taxpayers.
- Returns over $850 million of the surplus to Wisconsinites, providing direct support to over 3 million Wisconsinites to respond to rising costs.
The Source: Information in this story is from the governor's office in collaboration with Republican leaders, Tuesday's committee vote and prior coverage related to the budget proposal.