Wisconsin budget: Senate passes, sends to Gov. Evers

MADISON, Wis. - Wisconsin Republicans finished their work on the state budget Wednesday, moving the $87 billion spending plan through the Senate and on to Gov. Tony Evers.

The Senate passed the massive bill on a 23-9 vote after about five hours of debate. Three Democrats joined Republicans in voting for the budget — Senate Minority Leader Janet Bewley, Jeff Smith and Brad Pfaff.

The Assembly passed it Tuesday night. Evers introduced the budget in February; Republican lawmakers have been working on revisions since May.

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The centerpiece of the two-year budget is a GOP-authored plan to cut $3.3 billion in income and property taxes, a move made possible by the state’s unprecedented $4.4 billion surplus.

"In this case, the rich get a whole heck of a lot more than the rest of us," Sen. Chris Larson, a Milwaukee Democrat, said.

"That’s how taxes work, because if you cut the rates, people that are making more are going to pay less, because you’re lowering the tax rates," Sen. Dale Kooyenga, a Brookfield Republican, said. "Overall, the average Wisconsin middle-class family is going to see a thousand dollars in tax relief."

The budget would cut half of the state money for the Milwaukee County Transit System. Republicans said that is because federal aid is coming in.

The spending plan would also borrow $125 million to expand broadband.

Education a focus

The budget also would end an eight-year freeze on University of Wisconsin System undergraduate resident tuition and hold K-12 funding largely flat. State schools are in line to receive $2.6 billion in federal pandemic relief aid, however. In all, Republicans reduced spending by about $4.4 billion from what Evers proposed.

Much of the early debate focused on school funding. Larson accused Republicans of choosing to impose tax cuts rather than funding schools even though the state is flush with cash.

"This is a chance to make sure we’re investing in education. I get that there’s a temptation to throw money up in the air like you’re Oprah, but the reality is our kids really need this funding and you really should be investing in this population," said Larson.

Kooyenga countered that the budget doesn't cut education funding and schools are set to receive "jaw-dropping" amounts of federal aid.

"Education is getting more money than they ever had in Wisconsin history. The amount of federal dollars is jaw-dropping," Kooyenga said.

The nonpartisan Legislative Fiscal Bureau finds that if the governor vetoes the entire budget, the state would not meet the requirements to get federal money for schools.

What's next?

Republicans erased literally hundreds of Evers' proposals from the spending plan, including legalizing marijuana, expanding Medicaid, restoring union rights for state workers, raising the minimum wage and allowing judges to seize guns from people they deem dangerous.

Debate began in the Senate around 3 p.m. Wednesday. Republicans touted their tax cuts, calling them historic. Democrats slowed the proceedings with long speeches lambasting Republicans for eliminating Evers' priorities. Sen. Chris Larson, a Milwaukee Democrat, accused Republicans of choosing to impose tax cuts rather than funding schools even though the state is flush with cash.

Evers will have six days excluding Sundays to take action on the budget once it reaches his desk. He could sign the budget into law, use his partial veto powers to rewrite the document more to his liking — he can strike words but can't add any — or veto the entire plan, although that's unlikely. If he does nothing during that window, the budget automatically becomes law.

Evers' spokeswoman Britt Cudaback said Wednesday morning that the administration was reviewing the spending plan as passed by the Assembly.

She pointed to a Legislative Fiscal Bureau memo that said if Evers vetoed the entire budget the state would lose the $2.6 billion in federal pandemic relief aid for schools, a possible signal that Evers isn't considering such a move.

No governor has vetoed the entire budget since 1931.

Statements from legislators

Senate Majority Leader Devin LeMahieu (R-Oostburg)

"The full Legislature has now passed the most conservative budget in a generation turning Governor Evers’ bloated, political document into a responsible, bi-partisan success story for our state.

"In addition to a transformational $3.4 billion tax cut, the Legislature made targeted investments in every essential function of state government including significant new money to schools, frontline healthcare workers, and a fully-funded transportation system all while maintaining historically low state spending.

"During the last decade, Legislative Republicans spent within our means and kept more money in the hands of hard-working taxpayers and job creators. Today, we doubled down on our past work with a historic budget that keeps the People of Wisconsin on course for another decade of prosperity and success." 

Sen. Julian Bradley (R-Franklin)

"After Governor Evers closed small businesses across Wisconsin during the pandemic and refused to lift a finger to help students whose school districts abandoned them, he proposed a ridiculous budget that included $1.5 billion in tax and fee increases. Today, Republicans are doing the right thing by passing our balanced budget and sending a $1,200 tax cut to the typical Wisconsin family.

"In our budget, we ensure schools can get federal funding to help with in-person learning in a way that will save $300 for the average homeowner. We also repealed the $200 million personal property tax that hinders the growth of small businesses and their recovery after the pandemic. And by eliminating an entire tax bracket, the typical Wisconsin family will save $900 in income taxes, directly helping our middle-class families.

"Right now, Governor Evers and his administration are looking for vetoes to help his far-left campaign backers and those who prefer to collect unemployment than interview for one of the thousands of available jobs across Wisconsin. 

"The transformational tax relief in our budget is the right answer for Wisconsin. Governor Evers should not veto the incredible tax cuts we're sending his way — doing so would dig his own political grave."

Sen. Chris Kapenga (R-Delafield)

"The first thing I think about on a budget is ‘how much.’ From my perspective, the budget needs to be something that the average person can look at and say ‘that’s a reasonable plan.’ 

"When we started with the governor’s budget, we received a document filled with tax increases, massive spending, and partisan, non-fiscal policy. The state’s final budget will result in 2% growth, which is realistic to most people. 

"I’ve always pushed for reduced government spending, but I also have to keep in mind that I am just one legislator, and we have to deal with a governor of the opposite party. 

"That being said, because I was able to help get in place a $3.4 billion tax cut, the true winners of this responsible budget are the taxpayers. That is huge! 

"This includes $650 million in property tax relief, the elimination of a $200 million burdensome personal property tax, and a $2.5 billion income tax reduction. 

"The income tax reduction is a significant step toward making the flat tax a reality. 

"No budget is ever perfect, but when we can get government out of the way and allow our citizens and businesses to invest and innovate with their own dollars, it’s a good day for the people of Wisconsin." 

Sen. Duey Stroebel (R-Saukville)

"Today is a great day for Wisconsin."

"The Republican budget reduces the size and scope of government, lowers taxes, and provides historic levels of funding to K-12 schools. This budget is pro-taxpayer, pro-education and fiscally sound. It continues a decade-long effort by legislative Republicans to prudently manage Wisconsin’s finances."

"This budget spends $17.9 billion on K-12 schools over the next two years; that is more money than the state has ever spent – by a long shot - on K-12 priorities in a budget. Those who argue it is not enough are playing games because the facts and figures show that Republicans take K-12 education seriously," Stroebel said. "I continue to expect more accountability, and demand better outcomes, from our K-12 education system."

"We have invested historic amounts of state money in special needs education and we used a portion of new federal education dollars to reward school districts that were open for in-person education," Stroebel pointed out. "Republicans increased the special needs reimbursement rate from an average of 10% of a district’s costs to 30% of a district’s costs."

In conjunction with the budget, the legislature also passed a full repeal of the personal property tax.

"It is not often that government chooses to completely and totally eliminate a tax, but that’s exactly what legislative Republicans have done to the 151 year-old personal property tax."

"This tax is inefficient to administer, inefficient to comply with, and represents an outdated approach to tax policy. Eliminating this tax eventually results in a $200 million a year savings for small business owners across Wisconsin."

The budget also lowers the state’s second highest income tax rate from 6.27% to 5.3%, which will save the average Wisconsin family $1,000 a year on their state income taxes.

"The personal property tax repeal, income tax cut, and a property tax relief measure mean the Republican budget lowers taxes by $3.4 billion," Stroebel said. "That’s a long way from the $1.5 billion in tax and fee hikes that were proposed by the governor at the beginning of this process."

"This is a good budget for Wisconsin and I hope Gov. Tony Evers does the right thing and signs it into law."

Sen. Dan Feyen (R-Fond du Lac)

"I am excited about this budget and I am proud to have voted "yes" on the Senate floor today. Today’s vote is a victory for not only the 18th Senate District, but all Wisconsinites.

"This budget takes an enormous $4.4 billion surplus and sends the money back to the hard-working taxpayers in the form of a $3.4 billion tax cut. Income taxes will be cut by $2.5 billion and property taxes by $650 million. This will result in a $1,200 savings for a typical family.

"We included funding to completely remove the rest of the Personal Property Tax. This returns $200 million back to Main Street businesses throughout the state, helping to boost the backbone of our economy.

"This budget makes historic investments in our education system, putting over $16 billion towards our schools. That’s $678,537,000 more than the previous budget. We were able to fund our education priorities and put more spending than ever before on mental health, special education, and high cost transportation.

"In addition to historic investments in education, we added a $100 million boost for local, rural roads and increased General Transportation Aids. These are historic investments to our state’s transportation fund and continue our commitment to strengthening the State’s roadways.

"Broadband expansion is a huge priority of mine. To that end, this budget adds $125 million for broadband expansion grants. Along with the Federal and private sector investments in broadband, Wisconsin will see huge improvements that will connect our residents and businesses, all across the state.

"This budget will benefit all Wisconsinites by investing in our priorities, returning money to the people that earned it, and making sure Wisconsin is set up for success for years to come. This budget is a win for everyone in the State and I am looking forward to it getting the Governor’s signature"

Sen. Melissa Agard (D-Madison)

"When Governor Evers introduced his 2021-23 budget proposal back in February, one thing was abundantly clear - he listened to what Wisconsinites across the state wanted and crafted a budget that represents the will of the people. I respect the governor’s approach because it serves as a guide for what elected officials should be focused on every day in the Capitol: improving the lives of hardworking people. Our state government should work for everyone, not just the wealthy and well connected. It is our duty to ensure that ordinary people have confidence that their voice is reflected in the work we do.

"Many of the items Republicans stripped from the budget are issues that have widespread public support, like increasing access to health care through Medicaid expansion, legalizing cannabis, creating fair maps, ensuring clean water, expanding broadband, and increasing equity. These aren’t partisan priorities, they’re Wisconsin priorities. Removing these core provisions show that Republicans are increasingly out of touch with what people want in this state, and are instead more interested in unrealistic political ploys than honest governing.

"I’m disappointed that there are so many missed opportunities in this budget. We had the opportunity to invest in health care by finally expanding Medicaid and taking advantage of the one-time chance to bring in an additional $1.6 billion federal dollars. Republicans said no. We had the opportunity to make a significant investment in rural broadband by committing $200 million in state dollars. Republicans chose to reduce this number to a borrowed $125 million. We had the opportunity to make a generational investment in our children with $1.6 billion toward K-12 public education. Republicans slashed that to $256 million, a fraction of what the governor proposed.

"I want what is best for Wisconsin. I want our great state to be left in a better place than where we found it for our children. I will never stop advocating for policies that the fabulous people of Wisconsin deserve, and I will continue to come to work every day with your voices and hopes in mind."

Sen. Howard Marklein (R-Spring Green)

"I am very proud of the legislature’s state budget. We made strategic investments to support the priorities of the people of Wisconsin while respecting the hard-working taxpayers we serve.

This budget is very good for the rural roads in my district. The rural hospitals and nursing homes in my district will benefit from increased funding. The dedicated employees that work in those nursing homes and agencies will also benefit from this budget."

We cut taxes by $3.4 billion while funding education, healthcare, transportation, broadband and much, much more.  We did all of this while growing the balance in our Rainy Day Fund to $2 billion. This safety net is terrific insurance for the future.

This is a good budget that makes strategic investments while respecting the taxpayer’s checkbook. I am proud of our work on behalf of the people of Wisconsin."

Sen. Jon Erpenbach (D-West Point)

"After the turbulent year that Wisconsin families and communities went through, the Republican budget is incredibly disappointing compared to what was originally introduced by the Governor," said Sen. Jon Erpenbach (D-West Point). "Republicans failed to show up at the height of the pandemic when their constituents needed them most and the budget they have created is no different. Over the last several months, Gov. Evers and Legislative Democrats have tirelessly tried to capture federal funds and incentives to invest in schools, strengthen communities and grow their economies. Meanwhile, Republicans are not only refusing to bring home money that belongs to Wisconsinites, but they’re hoarding money that should be invested back into every corner of this state.

"Gov. Tony Evers’ original budget proposal seized on an historic opportunity to capture funds to invest in families, strengthen communities and ensure a prosperous economic bounce-back," added Sen. Erpenbach. "Families, schools, and small businesses depend on a responsible budget that invests in our priorities. We need bold, innovative solutions in order to make Wisconsin a place where future generations want to work and live – the Republican budget misses the mark and because it underfunds our K-12 schools so severely, I voted no. I am hopeful that through his constitutional powers, Governor Evers will be able to make necessary modifications to sign a budget that better reflects the needs of our state."

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