Legislature Fails to Pass Special Session Funding Agreement

On Monday, May 11th, Governor Evers, Speaker Vos, and Senate Majority Leader LeMahieu announced a deal to “use a portion of the state’s readily available state surplus to invest in Wisconsin’s kids and K-12 schools, provide property tax relief statewide, and help working families afford rising costs. The bipartisan package proposed to invest over $600 million in Wisconsin’s K-12 schools, including providing the largest increase to the state’s special education reimbursement rate in state history to attain 50% as well as investing over $300 million in general school aids; provides tens of millions of dollars in statewide property tax relief through Wisconsin Technical College System aid; the proposal also would have made direct payments to Wisconsin’s working families who are struggling to keep up with rising costs; and eliminated state income tax on tipped and overtime income.”

Wisconsin closed the last fiscal year with $4.6 billion in the state’s general fund, and $2 billion in the “rainy day” fund. A memo released by DOA and DOR indicates the revenue collections are better than projected in January, tracking between $300 million and $350 million above January estimates. The memo states, “Through April, fiscal year 2025-26 general fund tax collections are tracking approximately $300 million to $350 million above the Legislative Fiscal Bureau’s January estimates, which were $1,529.0 million above the net balance projected at the time of enactment of the 2025-27 biennial budget. Strength in general fund tax collections has primarily emanated from individual and corporate income tax receipts to date. Sales tax collections have also modestly exceeded estimates… Through April, fiscal year 2025-26 general fund tax collections have increased 5.3%compared to last year. Individual income tax collections have risen 4.4%, corporate income tax collections have increased 11.1%, and sales and use tax collections have risen 4.5%. While a portion of the gain in individual income tax collections results from a favorable comparison due to processing season anomalies in fiscal year 2024-25, growth has significantly exceeded the 1.4% growth rate estimated in January for fiscal year 2025-26.”

The attached document summarizes this LFB Memo on the Special Session proposals.

Governor Evers called a special session for the proposal.

• Executive Order #292
  

On Tuesday, May 12th, Joint Finance introduced the Special Session bills and passed them out of committee 12-4 (Representatives McGuire and Andraca and Senators Johnson and Roys voting against passage).

• MY6 AB1 Special Session Funding Bill (Joint Committee on Finance) An income tax subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus refund payments; increasing funding for special education and school age parents programs; state aid to technical colleges and the technical college district revenue limit; and making an appropriation.
  

• MY6 SB1 Special Session Funding Bill (Joint Committee on Finance) An income tax subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus refund payments; increasing funding for special education and school age parents programs; state aid to technical colleges and the technical college district revenue limit; and making an appropriation.
  

On Wednesday, May 13th, the Legislature went to the floor in Special Session to act on the Special Session bills. The Assembly added an amendment which is summarized in this attachment.

The Assembly passed the bill 61-32. The Senate refused concurrence 15-18.

The Special Session on the Funding Agreement was adjourned, the Special Session on Redistricting was adjourned, and the Veto Review Session was adjourned.   

Election Updates

The following people have announced they will NOT seek re-election in 2026:

• Andre Jacque (R - New Franken) SD-1
  
• Rob Hutton (R - Brookfield) SD-5
  
• Devin LeMahieu (R - Oostburg) SD-9
  
• Steve Nass (R - Whitewater) SD-11
  
• Van Wanggaard (R - Racine) SD-21
  
• Jesse James (R - Thorp) SD-23
  

• Jessie Rodriguez (R - Oak Creek) AD-21
  
• Robin Vos (R - Rochester) AD-33
  
• Dean Kaufert (R - Neenah) AD-53
  
• Dave Murphy (R - Hortonville) AD-56
  
• Kevin Petersen (R - Waupaca) AD-57
  
• Rick Gundrum (R - Slinger) AD-58
  
• Rob Brooks (R - Saukville) AD-59
  
• Jerry O’Connor (R - Fond du Lac) AD-60
  
• Scott Allen (R - Waukesha) AD-82
  

The following people have announced they are seeking a different office:

• Robyn Vining (D - Wauwatosa) AD-13 – Running for SD-5
  
• Jenna Jacobson (D - Oregon) AD-50 – Running for SD-17
  
• Francesca Hong (D - Madison) AD-76 – Running for Governor
  

Upcoming Campaign Deadlines

• Noncandidacy forms are due to the WI Elections Commission by May 22nd. 
  
• Nomination papers are due to WI Elections Commission by June 1st. 
  

Community Development Grants

The State Building Commission met on May 13th and approved $248 million in projects. In addition to regular maintenance, building and repairs to state buildings, the Building Commission approved $20 million for 71 local community development projects through the Non-State Grant Program.

The full list of 71 projects is attached, and municipal projects include:

• $200,000 to the Village of Oregon for the Oregon Area Senior Center and Community Gymnasium building project.
  
• $800,000 to the City of New Richmond for the New Richmond Community Library. 
  
• $800,000 to Chilton Public Library for the Chilton Broadband-Enabled Library & Community Facility. 
  
• $800,000 to the City of Delavan for the Rooted in Our Community, Growing for the Future: Aram Public Library Expansion & Renovation project.
  
• $750,000 to the Beloit Public Library for the Discovery PLAYce at the Beloit Public Library. 
  
• $2 million to the City of Racine for the Dr. Martin Luther King Jr. Community Center.
  
• $1.2 million to the City of Green Bay for the Green Bay Fire Station Flats Apartments.
  
• $800,000 to the City of Marshfield for the city of Marshfield police department relocation project.
  
• $1.2 million to the City of West Bend for the new construction and site improvements to the city of West Bend Fire Station #1.
  
• $800,000 to Mayville EMS for the Mayville EMS and Mayville Training Center New Building.
  
• $800,000 to the City of Prairie du Chien for the Prairie du Chien Public Safety Center.
  
• $800,000 to the City of Hartford for the Hartford Fire Station 2.
  
• $200,000 to the City of Middleton Parks & Recreation for the new Parisi Park Shelter. 
  
• $1 million to the City of Shullsburg for the revitalization of the Badger Mine & Museum.