Global Courant
Taxes would be cut at all income levels, with the wealthiest benefiting the most, and the University of Wisconsin would get nearly half a billion dollars less than it asked for under a two-year spending plan due for approval Wednesday to the Senate.
The plan drafted by the Republicans also includes parts of a bipartisan compromise reached with Democratic Gov. Tony Evers to increase funding for K-12 schools by $1 billion. Evers made that deal with Republican legislative leaders as part of a larger package to increase funding for local governments by $1 billion, including giving Milwaukee County and City the ability to raise local sales taxes to avoid bankruptcy.
Evers, Democratic lawmakers and others have pushed Republicans to increase funding for UW, a K-12 school safety agency and pandemic-era childcare program. But GOP leaders said Tuesday they will not make any substantive changes to the budget.
The Senate took it up on Wednesday, followed by the General Assembly on Thursday. From there, it would go to Evers, who can make changes through his line item veto, but he can’t use that to add money. Evers also has the ability to veto the entire budget, forcing the legislature to start over, a move he threatens to make if UW’s funding for diversity, equality and inclusion, or DEI, programs is cut.
YOUR PRESIDENT WARNS GOP OF BUDGET RESTRICTION; THREATENS CAMPUS CLOSURES, SCHOOL LISTS
The budget currently cuts UW by $32 million, the amount identified by GOP leaders will go toward DEI staff salaries and programming. But the university could get that money back later if it turns out it would be spent on workforce development efforts. Republicans also refused to fund the top priority of UW’s construction project, a new tech facility on the Madison campus.
Attempts have been made to make other changes to the budget.
The Wisconsin Capitol building is pictured on September 12, 2021 in Madison. The Wisconsin Senate will vote on a two-year budget that cuts taxes on all income levels and cuts funding for the University of Wisconsin. (Patrick McDermott/Getty Images for IRONMAN)
Democratic Attorney General Josh Kaul, along with school leaders and law enforcement officials, has urged Republicans to allocate more money to the state’s school safety agency. Federal funding is running out at the end of this year, and Republicans refused to replace it with state money.
Democrats and childcare providers have also lobbied to restore funding for a pandemic-era childcare subsidy program that Republicans cut. Proponents have argued that the move would be devastating to needy families and the state’s economy.
WI GOP WILL NOT MAKE SCIENTIFIC CHANGES TO THE BUDGET, INCLUDING THE LIMITATION OF FUNDING TO THE UNIVERSITY OF WISCONSIN SYSTEM
Those calling for additional funding have argued that it is possible, as the state has an estimated budget surplus of nearly $7 billion. Republicans have instead focused on cutting taxes.
The state budget includes a $3.5 billion income tax cut for all taxpayers, a plan Democrats have mocked because wealthy people get a bigger cut than lower earners.
Under the GOP plan, those earning between $60,000 and $70,000 a year would average about $250 in tax cuts. But those who earn between $25,000 and $30,000 only get $15 on average. Those who earn between $250,000 and $300,000 a year get the largest percentage tax cut, at over 17%, which equates to an average savings of $2,157 .
The 11th richest taxpayers in Wisconsin, earning more than $75 million a year, would each receive a $1.8 million tax cut.
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Evers may be able to reverse the tax cut with his partial veto.
The budget would also:
Give all state employees a 4% pay raise this year and 2% next year, while prison guards would get a starting salary of $13 an hour to $33 in an effort to address staff shortages. “forever chemicals” known as PFAS. Increase electric vehicle registration fees from $100 per year to $175 per year.