In the early hours of July 3, Wisconsin’s next two-year state budget was finalized, totaling $111.1 billion in spending and marking a 12% increase over the previous cycle. Governor Tony Evers signed the plan into law shortly after the Legislature gave its final approval.
Negotiations stretched over several weeks and intensified in the final days of the fiscal year, as slimmer legislative majorities, especially amongst Republicans in the Senate, added pressure to reach a deal. Talks gained traction once Senate Democratic leadership joined the discussions, ultimately paving the way for a bipartisan agreement. The compromise reflects a blend of priorities from both Republican legislators and the Governor’s “Year of the Kid” agenda.
Key provisions in the final package include:
- Tax Relief: $1.5 billion in tax cuts, including middle-class income tax reductions, retirement income exemptions for seniors, and an end to the sales tax on electricity.
- Child Care: Over $330 million in support for child care providers, with a new, state-funded child care program launched using general revenue funds.
- K-12 Education: Nearly $1.4 billion in new resources for public schools, with a 42% in the first year and 45% percent in the second year special education aid increase.
- Food Security: $10 million to continue the Food Security Initiative grant program, which connects local nonprofit food assistance programs such as food pantries with local food producers.
- Municipal Service Payments: $7 million annual increase to the Payments for Municipal Services program, which restores program funding to approximately 50 percent of the state’s share of what local governments are entitled for providing services to state government facilities.
- Universities of Wisconsin: More than $250 million in new funding.
- Private Colleges: 20% increase over the next biennium for the Wisconsin Grant.
- Health Care & Infrastructure: $1.4 billion to support Medicaid, higher hospital assessments to unlock additional federal funding, and $200 million in transportation investments through new fee structures.
Click here to view the updated list of bills.
by Jim Steineke, Government Affairs & Advocacy