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Tax law

Wisconsin Budget Deal: Evers and Republicans Reach Agreement on Taxes, University Funding, and Prisons

Strategic Insights

— 2 min read

Wisconsin Gov. Tony Evers and Republicans who control the state Legislature have reached a deal on a new two-year budget that cuts income taxes, increases funding for the University of Wisconsin, raises fees to pay for transportation projects, and stabilizes the state's child care system. The deal, announced on Tuesday, was reached after Republicans killed over 600 of Evers' proposals in the budget, including legalizing marijuana, expanding Medicaid, and raising taxes on millionaires. Democrats credit redistricting for the compromise, which has resulted in a 18-15 Republican majority in the Senate being narrowed to 18-15.

Key Takeaways:

  • The budget deal includes $1.3 billion in income tax cuts, targeting the middle class, with over 1.6 million people seeing their taxes cut by an average of $180 annually.
  • The deal increases funding for the University of Wisconsin by $256 million over two years, the largest funding increase in about two decades.
  • Republicans will be voting on a plan to close the 127-year-old Green Bay Correctional Institution by 2029 as proposed by Evers, but it's unclear what other elements of Evers' prison overhaul plan will be endorsed.
  • The agreement increases funding for K-12 special education programs by $500 million and provides a 3% raise for state employees, including university staff.
  • Democrats argue that the budget deal is a result of the consequences of Wisconsin's new fairer maps, with legislators working together to find compromise and make progress for the people of Wisconsin.
  • Evers will have 10 business days to take action on the spending plan once the Legislature passes it, and has stated that he will not veto any budget provisions that were part of the deal he reached with Republicans.

Statistics:

  • Over 1.6 million taxpayers will see their taxes cut by an average of $180 annually due to the $1.3 billion in income tax cuts.
  • The University of Wisconsin will receive a $256 million increase in funding over two years.
  • The budget deal includes a 3% raise for state employees this year and a 2% raise next year.
  • The agreement increases funding for K-12 special education programs by $500 million.
  • The deal also includes a 3% increase in funding for the state's child care program over two years.

Sources:

  • Associated Press: "Wisconsin budget talks show compromise, despite big differences" (https://apnews.com/article/wisconsin-budget-trump-tax-cut-evers-7c3f780cdbdfa3e7a3c826e6f0473001)
  • Wisconsin Watch: "Wisconsin Gov. Tony Evers reaches budget deal with Republicans to cut taxes, fund university system" (https://wisconsinwatch.org/2025/07/wisconsin-budget-deal-evers-republican-democrat-tax-cut-university-funding/)
  • Wisconsin Watch: "Wisconsin budget deal: Evers, Republicans reach agreement on taxes, university funding, prisons" (https://wisconsinwatch.org/2025/07/wisconsin-budget-deal-evers-republican-democrat-tax-cut-university-funding/)

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