The Budget Battle Begins

 The Budget Battle Begins

Political posturing is not enough

 

Once again, we see the stark differences between Democrat and Republican visions for Wisconsin’s future on full display. Democrats see us working together to address the needs and desires of working families while Republicans want to favor the rich and continue fighting culture wars already lost. The venue this time was our state capitol, and the vehicle was Governor Tony Evers’ State of the State Address coupled with the Republican response.

 

Evers’ address laid out his proposed state budget for the next two years coupled with a plea for Democrats and Republicans working together to solve common problems.

 

Evers’ proposal increases state spending by a modest 23%, cuts income taxes for most state taxpayers by 10%, increases funding for public schools dramatically and addresses much needed reforms for most state programs.

 

The proposed tax cut would save almost 200 million Wisconsin taxpayers about $200 per year. It would apply to individuals making less than $100,00 per year and couples filing jointly less that $150,000 annually. He also proposes to increase the state supplement to the Federal Earned Income Tax Credit and expanding the Child and Dependent Care Tax Credit, saving low-income taxpayers more than an additional $500 annually.

 

Evers also wants to modify the capital gains tax for the wealthiest taxpayers by limiting it to those earning less than $400,000 per year. He also proposes sending 20% of the state’s sales tax revenues back to local governments to help them defray costs for transportation and public safety.

 

Evers proposes the largest increase in public school funding in Wisconsin history, $2.6 billion. The goal is to return the state to Tommy Thompson’s promise of funding two-thirds of the cost of public education along with paying 60% of the cost of special education for students with disabilities. He includes funding increases for the state voucher programs and independent charter schools along with special needs scholarships to private schools while freezing enrollment in those programs. 

 

Mental health services in all schools would receive $270 million over two years under the Governor’s proposed budget. 

 

Infrastructure spending would continue under the Governor’s proposed budget. It includes $750 million in grants to further expand rural broadband internet services and paying off $380 million in transportation revenue bonds so state funds can be used to fix more roads.

 

Evers proposes to continue programs he started with Federal pandemic funds, including $319 million for the Child Care Counts program which helps child-care providers pay caregivers more without raising tuition for parents and $22 million to continue helping employers pay for childcare for their employees. 

 

The budget proposal addresses the crisis in our justice system by adding more assistant district attorneys and state public defenders, increasing their starting salaries, and returning 17-year-olds to the juvenile justice system rather than handling their criminal cases in adult courts. 

 

Evers also added more protections for workers in his budge proposal. He wants to provide 12 weeks of family and medical leave for both public and private sector workers funded by employer and employee payroll contributions with a $242 million kickstart from the state. He also proposes to restore collective bargaining rights for state and government workers and to repeal the so-called right to work law which keeps unions from requiring workers they represent to pay dues. Increases in the state minimum wage law and a requirement for public building projects to pay workers the local prevailing wage for their trade are also in the package.

 

The proposed budget also addresses clean up of water pollution from PFAS chemicals and increased staffing for the Department of Safety and Professional Services to deal with the backlog of pending professional licenses. 

 

Finally, Evers proposes to legalize and tax marijuana and to expand Medicaid under the Affordable Care Act making more low-income people eligible for Badger Care health coverage. 

 

Republicans in control of both houses of our legislature were quick to reject most of Evers’ budget proposals, vowing to create their own two-year budget without starting with the Governor’s proposal. Among the GOP priorities are returning much of the state’s surplus to taxpayers through tax cuts and the imposition of a flat tax scheme that would benefit the wealthiest Wisconsin residents. Many of Evers’ proposals have already been rejected by GOP legislative leaders such as marijuana legalization, Act 10 repeal, and increased staffing for state agencies. 

 

We will see if the two sides can come to any agreements on what the next budget will finally look like. Otherwise, we will see once more a GOP budget modified heavily by Evers’ line-item veto pen ending up with a revenue and spending plan no one likes.