Tuesday, July 1, 2025

Programming note: There will be no Weekly Update on Friday, July 4 due to the holiday. The regular newsletter returns July 11.

2025-27 STATE BUDGET

Lawmakers, Gov. Evers strike budget deal providing significant increases for Transportation projects

The art of compromise may still be alive in the state Capitol.

After months of disagreements and breakdowns, legislative leaders and Gov. Tony Evers struck a budget deal that generates hundreds of millions in new transportation revenue, kickstarts a massive freeway reconstruction project, invests in local and rural road maintenance, and establishes a work zone safety educational program.

The Joint Finance Committee voted 13-3 to approve its transportation funding plan Tuesday afternoon, with one Democrat joining the Republicans on the panel in support.

KEY TAKEAWAYS

8.6% overall increase to State Highway Improvement program
$715 million in new revenue (NOTE: Includes one-time general fund transfer of $565 million)
Enumerates I-39/90/94 reconstruction between Madison and Wisconsin Dells
Funds initial construction of I-94 East-West in Milwaukee
Establishes statewide work zone safety education program
Eliminates bonding proposal for state highway rehab work
Dedicates $92,500,000 for Design Build

“I am grateful for the months of work that’s gone into getting us to this point today,” Gov. Evers said in a news release.

“I want to thank Senate Majority Leader (Devin) LeMahieu, Speaker (Robin) Vos, and Senate Leader (Dianne) Hesselbein for being willing to come to the table so we could get a real and meaningful bipartisan budget done for Wisconsin."

The budget now heads to the Assembly and Senate floors Wednesday before Evers reviews and decides on line item vetoes.

"We're investing more in transportation than the governor was going to while also bonding for less," State Rep. Alex Dallman (R-Green Bay) said during his JFC testimony Thursday afternoon.

"It's the fiscally responsible thing to do at this point with the amount of money that we have in our surplus."

WHAT IT DOES

The new budget provides double-digit percentage increases in programs that fuel work for the transportation construction industry.

State Highway Rehab

JFC Approved $2,609,883,700 | Current: $2,263,295,700 | 15% increase

Major Highway Program

JFC Approved: $790,925,900 | Current: $591,908,300 | 33% increase

SE Megas

JFC Approved: $300,665,900 | Current: $238,160,800 | 26% increase

Design Build

JFC Approved: $92,500,000 for three projects

HOW IT'S PAID FOR

While Gov. Evers proposed significant increases in revenue, the Legislature scaled some of those back, filling the gap with another one-time transfer from the state’s general fund.

Notably, lawmakers felt Evers’ proposed $120 increase in vehicle title fees and transferring the sales tax from auto parts to the Transportation Fund went too far. They reduced the title fee increase to $50 and nixed the sales tax transfer.

However, the JFC also added a fee on heavy vehicle registrations and kept an increase on driver’s license fees.

In total, the new budget would produce $715,114,300 in new revenue from 2025-27

BONDING FOR THE BIG ONES

Two massive freeway projects in Wisconsin will soon get underway thanks to bonding.

The budget “enumerates” (authorize construction in state statutes) the reconstruction and expansion of 67 miles of I-39/90/94 from Madison to Wisconsin Dells.

The Transportation Projects Commission (TPC) in December recommended this project to the Legislature.

The reconstruction and expansion of I-94 East-West near American Family Field in Milwaukee also gets the money it needs to put shovels in the ground. WisDOT has initial lets for the project scheduled for September.

Notably, the Legislature decided to not borrow money for state highway rehabilitation projects. Evers had proposed $65,000,000 in bonding for that type of work.

DESIGN BUILD FUNDING

Lawmakers agreed to grow Wisconsin’s Design/Build program, approving $92,500,000 for three new projects.

Cranberry Interchange Project: Replace two structures on I-94 eastbound at the Tomah interchange. The first structure spans the I-90 eastbound ramp to I-94 westbound.

The second structure spans I-90 westbound. No additional roadway work is planned as part of this project except as necessary to accommodate the bridge replacements.

I-94 Rock/Crawfish Bridges Project: Replace two structures carrying I-94 over the Crawfish River and two structures carrying I-94 over the Rock River. The project anticipates raising the bridges to provide clearance above the 100-year flood event level; reconstruct the approach roadway and the roadway segment between the two bridges; and anticipates a grade raise up to approximately 1.5 feet for I-94 eastbound and 4.5 feet for I-94 westbound. The approximate length of Interstate reconstruction is four miles.

USH 51/STH 29 Marathon County Project: Pavement repair on the mainline roadway and multiple bridges. The Highway 29 work will extend from the Little Rib River Bridge to the Wisconsin River Bridge. The work on US 51 will extend from Foxglove Road to Bridge Street in Wausau.

ADDITIONAL INDUSTRY VICTORIES

Investing in safety

WTBA’s efforts to prioritize work zone safety certainly resonated in the state Capitol.

Lawmakers approved spending $600,000 on a WisDOT pilot program that will study enhanced safety measures on up to 10 state highways.

The Legislature also authorized spending $60,000 to establish an ongoing work zone safety educational program while awarding a grant to a private organization to create an online platform for young drivers to take the course.

Sound familiar? WTBA and its partners launched Work Zone Safe Wisconsin in April 2024. Since then, staff has pushed for the state to require the course by law. The free online program has been adopted by dozens of driving schools across Wisconsin and more than 2,500 people have successfully completed it.

Claims Reform

Requires Department of Administration Claims Board to make final determination on any WisDOT contractual claim filed within 6 months. Specifies if Claims Board finds claim would be more properly handled in a court of law or if Board fails to make final judgement within six months, claimant may seek judgement from state.

ARIP gets a bigger boost

The Legislature aims to continue the Agricultural Roads Improvement Program, which launched following the last budget cycle.

Evers wanted to pump another $50 million into the program, which fixes rural roads that directly serve farms, forestry, and food manufacturing plants. The governor suggested paying for that through a 50/50 split between general fund money and the forestry account of the conservation fund.

The JFC, instead, bumped ARIP up to $150 million but will pay for it out of the Transportation Fund.

LRIP and LRIP-S

The Local Roads Improvement Program will see 3% increases in funding each of the next two fiscal years. LRIP-Supplemental will receive a one-time boost of $100 million from the Transportation Fund.

Bridging the Gap

Brown County’s new South Bridge Connector project will add a railway bridge across the Fox River thanks to $30 million in freight rail preservation funding

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