Evers, Vos Argue Over Amended State Budget

Gov. Tony Evers signed the 2023-25 budget bill with 51 partial vetoes on July 5, 2023. (Baylor Spears | Wisconsin Examiner)

Gov. Tony Evers signed most of Wisconsin’s two-year budget passed by Republican lawmakers on Wednesday, but used his partial veto power to pare down Republican income tax cuts, protect 188 positions for the University of Wisconsin System and increase public school revenue limits for centuries.

Evers said that Republicans in many ways “failed to meet this historic moment” by sending a budget to his desk that excludes money for BadgerCare expansion and paid family leave, meaningful support for the struggling child care industry and significant investments in the UW System. In response to recent calls from advocacy groups and some Democratic lawmakers  to veto the budget in its entirety, however, he defended his decision to sign it.

“Vetoing this entire budget would mean abandoning priorities and ideas that I have spent four years advocating for,” Evers said, highlighting some of the investments that are in the budget including money to combat PFAS, invest in housing investments and bolster local governments. “While Republicans in the Legislature might be perfectly comfortable abdicating the duty we share, I am not.”

Evers said that by signing the budget but using his partial veto power to reshape portions of the document, he would “ensure ample state resources are available for the Legislature to complete their work on this budget.” He issued a total of 51 vetoes.

Evers rejected the majority of Republicans’ $3.5 billion income tax cut plan that would have condensed the state’s progressive tax structure to three brackets from four. The vetoes eliminate the top two income tax cuts passed by Republicans, which would have reduced the top bracket from 7.65% to 6.50% and the third tax bracket from 5.30% to 4.40%.

The top bracket applies to single filers making over $280,950 and joint filers making over $374,600, and the third bracket applies to single filers making between $25,520 and $280,950 and joint filers making between $34,030 and $374,600, according to the Department of Revenue website.

“I was disappointed that Republicans chose to reject my middle class tax cut, which would have provided 1.2 billion dollars in tax relief,” Evers said. “But using my broad veto authority, I’m doing what I can to ensure that tax relief goes to working families who need help affording rising costs, not to the wealthiest taxpayers in Wisconsin.”

Cuts for the bottom two brackets remain in the budget as Evers signed it. The first bracket, on incomes of less than $12,760 for single filers and $17,010 for joint filers will decrease from 3.54% to 3.50%. The second, on incomes of $12,760 to $25,520 for single filers and $17,010 to $34,030 for joint filers, will decrease from 4.65% to 4.40%. The cuts will total about $175 million in income tax relief.

Evers said in his veto message that his vetoes will result in an increase of about $1.4 billion in 2023-24 and $1.3 billion in 2024-25 in the state’s general fund tax revenue.

Assembly Speaker Robin Vos (R-Rochester) criticized Evers’ veto of the income tax cuts in a written statement on Wednesday.

“Vetoing tax cuts on the top two brackets provides hardly any tax relief for truly middle-class families,” Vos said. “His decision also creates another economic disadvantage for Wisconsin, leaving our top bracket higher than most of our neighboring states, including Illinois.”

Evers emphasized that all Wisconsin taxpayers will still receive an income tax cut under the plan.

Evers vetoed a reduction of 188 positions in the UW System. The positions, eliminated under the bill as passed by Republican lawmakers, were meant for diversity, equity and inclusion (DEI) efforts on UW campuses.

Evers said Republicans’ decision to “prolong a decades-long war on higher education” was shortsighted and that attacks on DEI are “the wrong interpretation” of what those efforts are meant to accomplish.

“The fact of the matter is… any large company in the state of Wisconsin has DEI efforts, so that they can get enough people to do the work for them and suddenly we’re going to say, this is a divisive thing?” Evers said. “Give me a break.”

The UW System will still need to return to the Joint Finance Committee to retain $32 million.

Vos said in a written statement emailed to reporters that Republicans were “not waging a war AGAINST higher education,” but rather “are waging a war FOR higher education by signaling that well-balanced instruction and merit-based advancement should be the foundation of earning a degree.”

By using his partial veto power to strike individual digits, Evers sought to secure ongoing per-pupil revenue limit increases for Wisconsin K-12 public schools. Schools will see an increase of $325 in their per-pupil revenue limits each year starting in 2023-24 and until 2425 — the next 402 years.

The original bill included the increase for only the 2023-24 and 2024-25 school years.

Vos said that Wisconsin property taxpayers will “bear the burden” of this veto. “By allowing this level into the future, homeowners will experience massive property tax increases in the coming years.”

Assembly Majority Leader Tyler August (R-Lake Geneva) said in a statement that Evers’ action broke their deal on school funding, which was negotiated alongside increases for state aid to local governments.

“It will be difficult, if not impossible, to ever negotiate with this governor again in the future,” August said.

Department of Public Instruction Superintendent Jill Underly said that while more work needs to be done, the budget was a strong start for bettering support for Wisconsin’s schools in part due to Evers’ vetoes.

“[The budget] offers districts an ongoing foundation of revenue growth to build from,” Underly said. “But we continue to need answers to the growing shortages and inequities caused by a lack of mental health, nutrition, and special education funding, as well as the imbalances caused by publicly funding two education systems, and only one of which really serves all kids. I hope we can rectify that in future budgets.”

Under the budget signed by Evers, Wisconsin’s special education reimbursement for public K-12 schools will increase from 30% to 33.3%. The budget also includes a substantial increase for the state’s charter and private voucher schools, which public school advocates have criticized for taking funding from the public school system.

Evers used his veto pen to alter a provision creating a Wisconsin Economic Development Corporation revolving loan fund for child care providers. Evers removed references to “revolving loans,” so that the money made available can be used to distribute grants to child care providers instead of loans.

Republican lawmakers decided not to include $340 million that Evers had proposed to continue the Child Care Counts program, which helped child care providers keep costs low for parents and increase pay for employees. Evers said his actions would help improve the Legislature’s “minimal effort,” but said it isn’t a “long-term solution to our state’s longstanding child care crisis.”

Evers also vetoed a provision prohibiting Medicaid coverage for puberty-blocking medicine for the purposes of gender-affirming care. In his veto message, he said he objected to “perpetuating hateful, discriminatory and anti-LGBTQ policies and rhetoric.” He added that reducing access to gender affirming care would “magnify the inequities in health outcomes already faced by the LGBTQ community.”

During his first budget, Evers issued 78 vetoes, although three were eventually rejected by the Wisconsin Supreme Court. He issued 50 vetoes in the 2021-23 budget cycle.

Gov. Evers signs budget with 51 partial vetoes was originally published by the Wisconsin Examiner.