Wisconsin Budget Deal Reached Over Deadline

Strategic Insights -

Wisconsin Governor Tony Evers and Republican lawmakers announced a bipartisan deal on a two-year budget that cuts income taxes, increases funding for the Universities of Wisconsin, and raises taxes to fund transportation projects. The deal, reached after the June 30 deadline, largely targets the middle class and retirees for tax relief. The budget will be voted on by the Legislature this week, with Governor Evers indicating he will not veto any provisions included in the compromise.

Key Takeaways:

  • The budget includes $1.3 billion in income tax cuts, with over 1.6 million people receiving an average annual tax cut of $180.
  • The deal expands the state's second-lowest income tax bracket and makes the first $24,000 of income for people 67 and over tax-free.
  • The Universities of Wisconsin will receive a $256 million funding increase over two years, the largest in about two decades.
  • Funding for child care programs will increase by $330 million over two years, with a third of that going directly to providers.
  • State employees, including at the university, will receive a 3% raise this year and a 2% raise next year.
  • The budget also includes $200 million in additional tax revenue for transportation projects and increases funding for K-12 special education programs by $500 million.
  • Republicans killed more than 600 of Governor Evers' proposals in the budget, including legalizing marijuana and expanding Medicaid.

Statistics:

  • 1.6 million people will have their taxes cut an average of $180 annually due to the $1.3 billion in income tax cuts.
  • The budget increases funding for the Universities of Wisconsin by $256 million over two years.
  • $330 million will be allocated to support state child care providers over two years.
  • State employees, including at the university, will receive a 3% raise this year and a 2% raise next year.
  • The budget includes an additional $200 million in tax revenue for transportation projects.
  • Funding for K-12 special education programs will increase by $500 million.

Sources:

  • Associated Press
  • Wisconsin Democratic Gov. Tony Evers
  • Republican Assembly Speaker Robin Vos
  • Senate Republican Majority Leader Devin LeMahieu