Gov. Evers delivers budget address; calls for tax cuts, pushback on Trump's tariffs
Gov. Evers gives budget address
Gov. Tony Evers on Tuesday decried what he called "irresponsible decisions in Washington" and "needless chaos," saying his new two-year spending proposal was designed to prepare for drastic cuts from the federal government.
MADISON, Wis. - Wisconsin Democratic Gov. Tony Evers on Tuesday decried what he called "irresponsible decisions in Washington" and "needless chaos," saying his new two-year spending proposal was designed to prepare for drastic cuts from the federal government.
What we know:
Evers released his budget as he considers seeking a third term in the battleground state that President Donald Trump narrowly won in November.
Evers' budget is more of a wish list than a roadmap of what will actually become law. Republicans who control the Legislature promised to kill most of his proposals, as they have done on his three previous budgets, before passing it later this year.
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"With so much happening in Washington that's reckless and partisan, in Wisconsin we must continue our work to be reasonable and pragmatic," Evers told the Legislature and other guests.
He urged lawmakers to leave $500 million available to respond to situations caused by federal decisions.
Dig deeper:
Here are highlights of Evers' $119 billion two-year budget, which would increase spending by more than 20%:
Pushing back against Trump on tariffs, higher education
Evers said that Trump's tariffs — or import taxes — could spark trade wars with Wisconsin's largest exporters and hurt the state's $116 billion agriculture industry.
Trump has imposed 10% tariffs on China and threatened, then delayed for 30 days, 25% taxes on goods from Canada and Mexico.
Gov. Tony Evers budget address
"I’m really concerned President Trump’s 25% tariff tax will not only hurt our farmers, ag industries and our economy but that it will cause prices to go up on everything from gas to groceries," Evers said.
Evers' plan calls for creating a new agriculture economist position in state government to help farmers navigate market disruptions caused by tariffs. He's also calling for increasing funding to help farmers find and increase markets for their products.
Tariffs are just one issue where Evers has fought back against the Trump agenda.
Evers also previously called for a bipartisan solution to immigration, while criticizing Trump's move to deport people in the country illegally.
And Evers proposed the highest increase in Universities of Wisconsin funding in state history, citing concerns about federal cuts.
"Politicians in Washington don't know a darn thing about what's going on at campuses across Wisconsin," Evers said. "They don't know how important our UW System has been to our state's success or how important it is for our future."
Evers taps into the Republican priority of cutting taxes
Evers has clashed with Republicans over tax cuts in the past, gutting a $3.5 billion tax cut in the last budget, while approving a $2 billion tax cut in 2021. In his new budget, Evers called for cutting a variety of income, sales and property taxes by nearly $2 billion, while increasing the income tax on millionaires by $1.3 billion.
Republicans will almost certainly kill any tax increase. They have said they want to use the state’s entire $4 billion surplus on cutting taxes.
The Evers plan includes eliminating the income tax on tips and doing away with the sales tax on over-the-counter medications. He also proposed reducing income taxes for the middle class and creating a new incentive for local governments not to increase property taxes.
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Republican Senate Majority Leader Devin LeMahieu discounted Evers' tax cuts as "gimmicky," called the budget "irresponsible" and said the GOP will deliver a alternative broad tax cut proposal soon.
Fighting water pollution caused by "forever chemicals"
Evers and Republicans have long been at odds over how to battle PFAS pollution, even as numerous Wisconsin communities struggle with contamination from the so-called forever chemicals and are forced to drink only bottled water.
Evers is calling for spending $145 million to fight the pollution through additional testing to find the pollution and researching ways to combat it.
PFAS, short for per- and polyfluoroalkyl substances, are man-made chemicals that don’t easily break down in nature. The chemicals have been linked to health problems including low birth weight, cancer and liver disease, and have been shown to make vaccines less effective.
Republicans unlikely to go along with Democratic plan
Republican Assembly Speaker Robin Vos said most of Evers' plan was "dead on arrival" and said the GOP would start from scratch. Republicans have repeatedly rejected his calls to expand Medicaid and legalize recreational marijuana. They are also unlikely to increase funding for K-12 schools and the Universities of Wisconsin budget as much as Evers wants.
Evers also proposed making Wisconsin the first state in the country to audit insurance companies over denying health care claims.
However, Republicans did not summarily reject another major Evers proposal to close the 127-year-old prison in Green Bay as part of a massive overhaul of the state's correctional system.
Reaction
Milwaukee County Executive David Crowley
"I am pleased to support the biennial state budget proposed by Governor Tony Evers. We heard the Governor say it himself: 2025 is the "Year of the Kid," and this proposal represents the most pro-kid budget in the State of Wisconsin’s history. Through new investments in public education, healthcare, and clean drinking water, it’s clear that Governor Evers is doing right by our children – while also lowering taxes and costs for working families.
"Specifically, I appreciate the Governor’s budget proposal that increases public safety funding for court operations, assistant district attorneys, youth corrections, and more. As the costs to administer state-mandated public safety services continue to rise, these funding increases are needed now more than ever to make our neighborhoods safer – not just in Milwaukee County, but across all 72 counties in Wisconsin. I’m also encouraged by the budget increases in mass transit aid and transportation funding so we can keep investing in our infrastructure, supporting job creation efforts, and maintaining public transit services for people in Milwaukee County. Workforce development also remains a top priority for local leaders throughout the Badger State, so it’s great to see this budget continue deploying investments to tackle the workforce challenges ahead.
"Overall, I appreciate the Governor’s and Wisconsin State Legislature’s continued track record of investing in Milwaukee County. Now that the Governor’s biennial budget proposal has been introduced, I look forward to working with legislative leaders and state lawmakers in Madison to pass a budget that strengthens our partnership with the State of Wisconsin, invests back in our communities, and delivers results for workers, families, and children in Milwaukee County."
The Source: The Associated Press contributed to this report.