It’s Groundhog Day in State Capitol

Wisconsin State Capitol. Photo by Mariiana Tzotcheva.

A new budget surplus estimate of $4.3 billion has Republican legislators promising an income tax cut and criticizing Democratic Gov. Tony Evers for not making that a priority.

The non-partisan Legislative Fiscal Bureau projected the $4.3 billion surplus when the current budget ends on June 30, setting the fiscal guardrails for the two-year budget Evers will soon give legislators. The Bureau estimated the state’s “rainy day” fund at another $1.8 billion.

But, in his State of the State message, Evers did not call for another income tax cut and instead said he wants to draw down the surplus by spending $500 million on child care subsidies and $300 million on mental health programs for students.

Sen. Howard Marklein and Rep. Mark Born, Republican cochairs of the Legislature’s Finance Committee that will draft its own budget over the next five months, said a tax cut remains their top priority.

“Our substantial surplus remains here in the state coffers instead of the pockets of hard-working Wisconsinites for one simple reason: Gov. Evers,” the two said in a statement.

“His refusal to support meaningful tax relief has kept that money locked up here in Madison. Legislative Republicans remain committed to returning the surplus to the people who paid it, the taxpayers,” Marklein and Born said, adding:

“[Revenue] estimates show that not only can we continue to fund our obligations and priorities, but that we can also give substantial tax relief to hard-working Wisconsinites.”

“Assembly Republicans will continue to work to return the surplus to its rightful owners – the working families of our state,” vowed Assembly Majority Leader Tyler August.

“Evers not only vetoed the largest tax cut in state history, but also vetoed legislation that would have eliminated taxes on all retirement income,” August added. “His efforts to hide his true record on taxes are an insult to the hardworking taxpayers of Wisconsin.”

In his message opening the two-year legislative session, Evers took a victory lap for past tax cuts, citing a Wisconsin Policy Forum report that the state and local tax burden in Wisconsin is the lowest since the 1970s.

“We have seen the largest drop in our tax burden of any state over the last 20 years. Cutting taxes has been a bipartisan priority over the last six years. I have proposed middle-class tax cuts in every budget I have introduced as governor,” Evers said.

Republican legislators “sent me back some proposals I agreed with,” he added. “All told, through the income tax cuts I’ve signed into law, most Wisconsinites have seen a 15% income tax cut or more, and folks will see $1.5 billion in tax relief each year, primarily targeted to the middle class.”

Instead of pledging that an income tax will be part of the two-year budget he will soon give lawmakers, Evers will call for new spending.

That won’t happen, vowed Senate Majority Leader Devin LeMahieu, who called the governor “the only roadblock to meaningful tax reform.”

Republicans, who control the Senate by a 18 to 15 margin, won’t spend state money “on a wishlist of liberal policy initiatives,” LeMahieu added.

Evers insisted there are other ways to help Wisconsin’s middle-class residents.

“Lowering everyday, out-of-pocket costs for Wisconsinites and working families must be a priority… Making child care and everyday prescriptions more affordable are two easy ways we can help Wisconsinites afford basic needs, help paychecks go a little further, and give parents, families, and seniors some breathing room in their household budgets,” the Democrat said.

Evers also promised that his budget request will include a “comprehensive plan to lower costs for Wisconsinites.”

But it will also include $500 million for child-care subsidies.

“Our state budget will – once again – include sustainable, ongoing funding to make our Child Care Counts program permanent, including investing over $500 million aimed at lowering child care costs, supporting this critical industry, and investing in employer-sponsored child care.”

Evers choked up noting the November suicide of Milwaukee Ald. Jonathan Brostoff, a former Democratic Assembly member, citing that tragedy as another reason why his budget request will include $300 million more for mental health programs.

That $300 million would “provide comprehensive mental health services in schools statewide, including support for peer-to-peer suicide prevention programs and expanded mental health training,” Evers added.

As they have in past years Evers and the Republicans seem far apart on the issues. The Capitol tax-cut fight seems like a wonky rerun of the movie Groundhog Day.

Steven Walters started covering the Capitol in 1988. Contact him at stevenscotwalters@gmail.com