Wisconsin’s Democratic Governor Tony Evers, alongside Republican leaders in the state Legislature, has brokered a crucial agreement on a new two-year budget, which was announced recently. This budget is noteworthy for its provisions that cut income taxes and bolster funding for the University of Wisconsin system while also increasing taxes earmarked for transportation projects.
The budget aims to reduce income taxes by $1.3 billion, primarily benefiting the middle class. Over 1.6 million Wisconsinites are expected to receive an average annual tax reduction of $180. Key elements of the deal include expanding the second-lowest income tax bracket and implementing tax exemptions on the first $24,000 of income for seniors aged 67 and older. The budget also removes the sales tax on electricity, projected to save residents around $156 million over two years.
Republican legislative leaders have lauded the agreement, emphasizing its significance in providing meaningful tax relief and enhancing government accountability. Assembly Speaker Robin Vos articulated that the budget meets two crucial demands: tax relief for the citizens of Wisconsin and government reforms. Similarly, Senate Republican Majority Leader Devin LeMahieu described the budget as a constructive compromise that not only reduces taxes but also fortifies the state’s child care system and boosts funding for special education in schools.
For the University of Wisconsin, the budget represents the largest funding increase in nearly 20 years, amounting to $256 million over two years. This is particularly significant considering previous discussions had hinted at potential cuts. The budget also introduces a minimum workload requirement for faculty and proposes an independent study to assess the system’s future sustainability.
Additionally, the agreement allocates $200 million in extra tax revenue for transportation initiatives, although specifics on the funding sources remain unclear. A substantial increase of $330 million over two years is earmarked for child care programs, replacing the previous Child Care Counts initiative, which had expired.
The budget notably enhances funding for K-12 special education, increasing it by $500 million, while also granting state employees, including university staff, salary raises of 3% this year and 2% next year.
It is significant to mention that this budget has seen more collaboration between Evers and the Republicans compared to past efforts, albeit with numerous Democratic proposals being rejected, including plans to legalize marijuana and expand Medicaid. The delay in passing the budget marks the first missed deadline since 2017.
Having already gained seats in the Legislature during the last election, Democrats are eyeing potential majority control in future elections, which reflects a changing political landscape in Wisconsin. The budget plan is set for a vote soon, and its passage will present Evers with an opportunity to exercise his partial veto powers, although he has indicated he will not negate any parts of the deal he settled with Republicans.
Overall, this budget deal appears to be a notable step toward addressing fiscal responsibilities and community needs in Wisconsin, fostering a potentially optimistic atmosphere for future cooperation among lawmakers.