Your Business Advocate: Evers’ budget, criminal justice reform, and more

On March 10th, Governor Evers unveiled a $4.1 billion capital budget focused on UW system infrastructure, maintenance projects, and prison restructuring. With $3.8 billion in proposed borrowing, the plan faces scrutiny from Republican lawmakers including Senate Majority Leader, Devin LeMahieu, calling the plan “unsustainable and irresponsible”. Meanwhile, the Joint Finance Committee has delayed its usual budget timeline, pushing public hearings to April as Wisconsin Supreme Court cases and federal policies may impact state funds.

The State Assembly convened for the first time in over a month to pass several criminal justice bills and policies impacting schools. One of the most debated measures, a bill requiring Milwaukee Public Schools (MPS) to maintain at least 25 school resource officers, passed without Democratic support. Several public safety measures, including requiring schools to notify parents of alleged staff misconduct, expanding law enforcement’s ability to impound vehicles for reckless driving, and increasing penalties for child sex trafficking were also voted on. Criminal justice reforms that passed included stricter penalties for repeat offenders, new court approval requirements for certain plea deals, and the creation of a public database to track criminal case outcomes.

These bills will advance to the state Senate before they head to the Governor’s desk. If the Senate does not meet next week, the next regular floor period is scheduled for April 15-25. Below is the list of the key proposals we’re monitoring for the Fox Cities:

AB 38/ SB 36 (Rep. Tusler/Sen. Jacque) – Creates an income tax exemption for cash tips paid to employees.

AB 17/SB 21 (Rep. Sortwell/Sen. James) – Establishes a tax credit for employee ownership conversion costs, a capital gains deduction for business transfers to employee ownership, and an employee ownership education and outreach program.

AJR 006/SJR 007 (Rep. Steffen/Sen. Bradley) – Recognizes nuclear power and fusion energy as clean energy sources critical to meeting Wisconsin’s energy demands. Declares the legislature’s commitment to expanding nuclear power, developing nuclear technologies, and investing in fusion energy.

AB 52/SB 60 (Rep. Bare/Sen. Spreitzer) – Expands the homestead income tax credit to provide additional relief for homeowners.

AB 60/SB 58 (Rep. Allen/Sen. Cabral Guevara) – Referendum questions to include how much property taxes would increase for the median-valued single-family home for certain referenda that affect property taxes.

AB 69/SB 90 (Rep. Murphy/Sen. Jacque) – The sales and use tax exemption for electricity and natural gas sold for residential use.