Bipartisan Deal Reached in Wisconsin to Fund Local Governments and Increase Education Spending

Strategic Insights -

Wisconsin lawmakers, led by Republican governor Tony Evers and Senate Republicans, have reached a crucial deal to provide more funding to local governments, particularly in Milwaukee, which is facing bankruptcy by 2025. The plan allows Milwaukee to raise its sales tax without voter approval, a move opposed by Assembly Republicans. The deal also allocates an additional $1 billion for K-12 schools and increases funding for families using private voucher schools. Milwaukee Mayor Cavalier Johnson warned about "catastrophic budget cuts" if a deal wasn't reached, and the city's reliance on federal pandemic aid to fund essential services has been a major concern.

Key Takeaways:

  • The bipartisan deal provides an additional $1 billion for K-12 schools in Wisconsin.
  • The plan increases funding for families using private voucher schools.
  • Milwaukee will be allowed to raise its sales tax without voter approval, but the local governing board must approve the increase with a two-thirds majority vote.
  • Local governments will receive a 20% increase in shared revenue from the state's 5-cent sales tax.
  • The city and county of Milwaukee will see a 10% increase in funding, but can ask voters to raise the local sales tax for additional money.
  • Milwaukee is the only city of its size in the country that is not allowed to have its own sales tax.
  • Shared revenue to local governments has remained nearly unchanged for 30 years.
  • The deal includes funding for reading and literacy programs, special education, and mental health in schools.
  • The agreement also includes restrictions on reducing police and fire departments and banning public health officials from ordering business closures.
  • Milwaukee is facing bankruptcy by 2025 and relies on federal pandemic aid to fund essential services.

Statistics:

  • The deal allocates an additional $1 billion for K-12 schools.
  • Funding for families using private voucher schools will increase.
  • Local governments will receive a 20% increase in shared revenue from the state's 5-cent sales tax.
  • Milwaukee is the only city of its size in the country that is not allowed to have its own sales tax.
  • The city faces an underfunded pension system and relies on federal aid to fund essential services, costing $150 million more per year.
  • Milwaukee's budget includes "catastrophic budget cuts" if a deal for more funding wasn't reached.
  • The 2025 deadline for Milwaukee's bankruptcy status due to underfunding.
  • $150 million more per year in costs for Milwaukee's essential services.
  • $1.6 billion in aid to local governments from the 20% tax on the state's 5-cent sales tax.
  • 5-cent sales tax revenue will be tapped 20% to fund local governments.
  • $50 million more on reading and literacy programs in schools.
  • 33% increase in special education funding.
  • $30 million on mental health in schools.

Sources:

  • Associated Press writer Corey Williams contributed to this report from Detroit.
  • Republican lawmakers and Democratic Gov. Tony Evers announced the deal on Thursday.