Vos, LeMahieu Agree on $2.3 Billion Plan to Spend Surplus

With the end of the legislative session drawing near, the state’s top GOP leaders say they’ve agreed on a $2.3 billion plan to spend Wisconsin’s budget surplus on tax rebates for residents and additional money for special education.

But whether Democratic Gov. Tony Evers can get onboard remains an open question.

Last week, Evers and Assembly Speaker Robin Vos, R-Rochester, appeared to be making progress toward a $1.3 billion agreement that would lower property taxes and increase school funding. But Senate Majority Leader Devin LeMahieu, R-Oostburg, opposed the plan.A letter sent to Evers Monday by Vos and LeMahieu said they’re willing to send another $200 million toward special education reimbursements, among other initiatives. In exchange, they want Evers to sign off on one-time tax rebates of $500 for individuals and $1,000 for married couples filing joint-tax returns.

The GOP offer would also send $500 million toward school levy tax credits aimed at blunting property tax increases, as well as funding for businesses and individuals who had property damaged by flooding.A spokesperson for Evers told WPR his office hasn’t closely reviewed the proposal from Vos and LeMahieu.

Notably, the GOP pitch doesn’t include $450 million in general school funding Evers said must be part of the deal.A couple big factors are driving the negotiations. Gross K-12 school property taxes in Wisconsin rose 7.8 percent in December, the largest increase in more than three decades, according to the Wisconsin Policy Forum.

Evers and Republicans also have a bigger-than-expected state budget surplus to work with. In January, the nonpartisan Legislative Fiscal Bureau estimated Wisconsin’s surplus would grow to $2.5 billion by June 30, 2027.

Latest Vos-LeMahieu offer would leave 400-year veto intact

The joint letter from Vos and LeMahieu marks a notable shift between the GOP caucuses in the Assembly and Senate, which had been at odds about demanding a repeal of Evers’ so-called 400-year veto. That partial veto, which Evers issued as part of the 2023 state budget, extended what was supposed to be a two-year increase in school revenue limits by four centuries.Last week, Vos suggested an immediate repeal of the veto wouldn’t be necessary before passing tax cuts. At the time, LeMahieu had said Senate Republicans would not get onboard unless the 400-year veto was axed.

LeMahieu had also indicated last week that he was left out of the discussions between Vos and Evers. In the latest offer Monday, it was Evers who appeared to be on the outside.

Vos says self-imposed deadlines ‘are what make politicians act’

There’s a time crunch — albeit a self-imposed one — for Republicans and the governor to sign off on the tax cut and school funding plan.  That’s because Vos said the Assembly will finish it’s legislative session by the end of the week.

During a Tuesday press conference, Assembly Minority Leader Greta Neubauer, D-Racine, called it a “fake deadline” and accused Vos of gaveling out of session in order to give Republican representatives a 10-month “vacation.”

Vos said “deadlines are what makes politicians act,” which includes Evers and Senate Republicans. He said the tax rebates under the GOP proposal could go “out the door by the end of the week, and be able to let people know there’s a little bit of relief on the way.”

“We have this huge surplus that we just discovered,” said Vos. “Gov. Evers put down where he wanted the money to go. We’ve actually got a good counter. So this is a perfect time for us to engage in the good faith negotiations.”

Vos said it’s possible the Assembly could meet again in an extraordinary session, but that would delay tax rebate payments by around a month.

Listen to the WPR report

In talks with Evers, Wisconsin GOP leaders back $2.3B plan to spend down surplus was originally published by Wisconsin Public Radio.