Wisconsin budget progress stalls amid Senate GOP resistance

Republicans on the Legislature’s budget-writing committee canceled last Thursday’s Joint Finance Committee meeting after two GOP senators voiced discontent and Gov. Tony Evers called a possible $87 million cut to the Universities of Wisconsin system a “nonstarter.”

Assembly Speaker Robin Vos, R-Rochester, and JFC co-chair Rep. Mark Born, R-Beaver Dam, said they had chosen to return to negotiations with Evers to guarantee tax cuts in the final budget and shared hope that Senate Republicans “will come back to the table to finish fighting for these reforms.”

Sen. Chris Kapenga, R-Delafield, and Sen. Steve Nass, R-Whitewater, indicated they are unlikely to vote for the budget in its current form. 

Senate Republicans have an 18-15 majority, so they can only lose one Republican vote without picking up a vote from a Democrat. To pass the budget, both the Assembly and the Senate must vote for it, and Evers must sign off. Evers can use his partial line-item veto or veto the whole budget.

Senate Majority Leader Devin LeMahieu, R-Oostburg, said conversations were heading in an unaffordable direction and Senate Republicans were ready to pass a budget “that cuts taxes and responsibly invests in core priorities.” 

Negotiations initially broke down on June 4 when Republicans walked out of conversations with the Evers administration, failing to agree on tax cuts and education spending. 

With delays and cancellations in approving the budget, it has become increasingly likely the next biennial budget will not be approved by the July 1 deadline. If it is not approved by the end of the month, the 2023-25 budget would carry over into the next fiscal year.

That’s not entirely unusual, though the latest Evers signed his first three budgets was July 8. In 2017, under former Gov. Scott Walker, the budget was not signed into law until September.

Democrats said if the budget is not approved before July 1, local school districts and municipalities will have to delay hiring because they won’t know how much funding they will receive from the state. 

Also, the looming federal budget puts Wisconsin at risk of losing out on federal dollars and programs if a budget is not passed soon. 

“We see a horrible budget bill being debated in Washington that could contain really, really significant cuts for services that all Wisconsinites rely on, thinking about, obviously health care, but certainly things like education, transportation, natural resources, agriculture,” Sen. Kelda Roys, D-Madison, said.

Rep. Tip McGuire, D-Kenosha, also criticized Republicans for “allowing extremists within their caucus to hijack this budget and go against the will of the people.”

Vos told reporters Wednesday afternoon the Republican caucus supports an $87 million cut to the UW system budget, yet an Evers spokesperson said any cut to the UW system would be a “nonstarter.” 

The UW system requested a record $856 million funding increase, which was scheduled for action on Tuesday and then removed from the agenda. Last budget cycle, Republicans withheld pay raises from the system and approval of UW-Madison’s new engineering building, eventually signing a deal to freeze diversity, equity and inclusion spending in exchange for the release of the funding.

Vos signaled the potential cuts to the UW system are also about leverage over campus culture. The Trump administration has similarly threatened to withhold and ultimately cut federal grants from universities unless they comply with demands aimed at reshaping campus culture and combating antisemitism. 

“It’s not about cutting money. What it is, is about getting some kind of reforms to the broken process that we currently have,” Vos said. “There is still too much political correctness on campus. We don’t have enough respect for political diversity.”

Democrats decry prison budget as ‘kicking the can down the road’

The budget committee voted 11-3 along party lines to increase funding for prisons by $148 million over the biennium, though Evers had requested $185 million.

Some of the key differences included the Legislature providing about $20 million less for community reentry programs and 50 fewer contract beds in county jails than Evers proposed.

During the budget committee meeting, Democrats accused their colleagues of “kicking the can down the road” by not funding programs that reduce recidivism in the approved motion. 

Republicans said that their budget motion is “realistic” and that it expands on “huge improvements” in prison guard vacancies made by the 2023-25 budget.

Upper middle income earners get bulk of GOP tax cut

The Wisconsin Republican tax cut plan will give middle to upper income earners the largest tax cut, while taxpayers earning under $40,000 will receive less than 1% of the total, according to a report last week from the nonpartisan Legislative Fiscal Bureau.

Wisconsin taxpayers earning $100,000 to $200,000 would receive 58.5% of the tax decrease, with an average cut of $242 for tax year 2025. In Wisconsin, those making between $100,000 and $200,000 account for a third of tax filers, according to the fiscal bureau.

Some lost federal disaster assistance gets state support

The committee passed a motion to provide additional funding for the Department of Military Affairs for emergency planning — a sign of some bipartisan agreement on alleviating the effects of federal funding cuts.

While the bill included most of Evers’ requests, the approved motion, introduced by Republicans, did not include Emergency Management Programs Sustainment funding, which would have replaced $1.13 million over the biennium in revenue lost as a result of federal cuts.

Previously, FEMA awarded $54 million in grants to Wisconsin to address environmental risks in the state, but federal cuts have canceled $43 million, reducing federal funding for natural disaster prevention by nearly 80%.

The measure adopted Tuesday with bipartisan support would allocate $2 million in 2025-26 for pre-disaster flood resilience grants and $3 million for state disaster assistance programs. The funding would prepare Wisconsin for disasters and provide assistance to mitigate consequences if a natural disaster were to occur.

Republicans add more assistant district attorneys

The budget committee voted 11-3 to add 42 additional assistant district attorneys in counties across the state, including seven positions in Brown, six positions in Waukesha and four positions in Fond du Lac.

Each county would now have staffing levels at approximately 80%, according to a workload analysis from the Wisconsin District Attorneys Association. Currently, 15 counties are below 60% of the staffing level suggested by the WDAA workload analysis, and 33 of 71 counties are below 70%.

The state has been struggling with a shortage of rural attorneys for several years, an issue Larry J. Martin, the executive director for the State Bar of Wisconsin, has called “a crisis that policymakers in our state Capitol must address.”

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.