TO: Clients & Friends 

FROM: Michael Best Strategies Wisconsin Team

DATE: February 15th, 2023

SUBJECT: Governor Evers Delivers 2023-25 Biennial Budget Address
Gov. Evers introduces 2023-2025 Budget
Tonight, Governor Tony Evers delivered his 2023-2025 Budget Address remotely to a Joint Session of the Wisconsin State Legislature.

Of note in his remarks were the following initiatives that were highlighted:

Taxes
  • Cuts taxes by 10 percent for single filers at or below $100,000 in annual adjusted gross income and married-joint filers at or below $150,000.

Infrastructure
  • $750 million for Broadband Expansion Grants.
  • Pays down $380 million in state debt in transportation revenue bonds.

Workforce Development
  • $500 million for programs designed to support local and regionally-based projects to help expand the state’s workforce, invest in healthcare infrastructure, and other capital projects.
  • $36 million for bolstering the justice workforce, including assistant district attorneys and public defenders.

Affordable Housing
  • $150 million to create Affordable Workforce Housing program.
  • $200 million into renovating and restoring existing residential properties, including providing low-interest and forgivable loans.

Funding Local Government
  • Sends 20 percent of the state’s sales tax revenue back to local communities for shared revenue.

Student-Athlete Health
  • $4.1 million in funding to local health departments to implement an EKG screening program for youths participating in athletics.

K-12 Education
  • $270 million over the biennium for the “Get Kids Ahead” initiative to ensure every student in Wisconsin has access to school-based mental health services.
  • $131.95 million to fully fund school breakfast and lunches for all children.
  • $10 million investment to bolster computer science education.

Child Care
  • $22 million for the Child Care Counts initiative to support partnerships between businesses and child care providers.
  • $240 million to provide private-sector workers in Wisconsin paid family and medical leave for 12 weeks.

Healthcare
  • Expands BadgerCare.

Driver’s Licenses
  • Provides driver’s licenses to all residents of Wisconsin regardless of citizenship and legal status.

Watch Governor Evers' full remarks below:
Other items of note in the Governor's Budget Proposal
The Governor's budget proposal also proposes these changes:
  • Allows Milwaukee County to impose an additional 1.0 percent sales tax, with 50 percent of the resulting new revenue distributed to the city of Milwaukee;
  • Allows counties, other than Milwaukee County, to impose an additional 0.5 percent sales tax and allows municipalities with populations over 30,000, other than the city of Milwaukee, to impose a 0.5 percent sales tax;
  • An $8 million investment to promote clean energy workforce;
  • $1.47 million investment to expand the state’s forestry industry and workforce;
  • Expansion of renter protections to ensure communities have tools needed to keep tenants safe;
  • An investment of $60 million to create a new civil legal assistance program for low-income individuals, with a focus on establishing statewide counsel for evictions;
  • Ensures federal student debt relief received by Wisconsinites would not be subject to state taxes;
  • Repeals the personal property tax while continuing to make payments to local governments to offset tax reduction;
  • Reduces the manufacturing portion of the Manufacturing & Agriculture Credit to only apply to the first $300,000 in qualified production activities income;
  • One-time investment of $290 million to the baseball park district from the state’s historic surplus funds;
  • $2.6 billion overall investment in general and categorical aids for public schools;
  • $172,200 for WEC to work with WisDOT to implement automatic voter registration; WisDOT will be appropriated an additional $349,000;
  • $400,000 to create a grant program for municipalities to purchase Badger Books, an electronic version of the voter list used to check in voters;
  • And $2 million and 10 FTE jobs to start an Office of Election Transparency & Compliance.
Legislative Reaction to the Governor's Budget
Republican Leaders
Republican Legislative leaders made the following statements in response to Governor Evers’ 2023-25 Biennial State Budget:

Speaker Robin Vos (R- Burlington)

“When you add up the entire budget spending, I think it would be the largest increase in spending in the history of the State of Wisconsin; all of that coupled with massive tax increases and expansions of new programs. I would say while there are some areas of Governor Evers' budget that I'm sure we will hope to find common ground on, our solutions are going to look dramatically different. ” 
Senate Majority Leader Devin LeMahieu (R- Oostburg)

“The Governor’s budget lacks the responsible decision making that the Legislature has provided in the past two budgets. The growth of government and the handouts to special interests is out of control. Once again, the Republican led Legislature will have to be the adults in the room and build a budget from the base up.”

“You will see a budget that provides real tax relief for all Wisconsin families, not the bait and switch the Governor has introduced. This version of the budget will appropriately invest in core services like education, health care, infrastructure, police, fire and EMS.” 
Rep. Mark Born, Co-Chair Joint Committee on Finance (R- Beaver Dam)

“As we build solutions with the people of Wisconsin for the priorities in this budget...obviously one of the top priorities in these inflationary times will be returning money to the taxpayers, but beyond that we will continue to find solutions and invest in priorities throughout the state in areas like local government funding...the difference I think will come always in the details. Where we will not continue to fund the same failed methods, but instead will focus on reforms and innovations. We will help build sustainable funding for the future of funding local governments, not that past. We will also look for ways to fund public safety... we will invest in those priorities to ensure for safe communities that all Wisconsinites want and deserve. Also we will focus on strengthening our workforce...and workforce housing opportunities...and fixing the Department of Safety and Professional Services. ” 
Sen. Howard Marklein, Co-Chair Joint Committee on Finance (R- Spring Green)

“The Governor’s budget is just a list of ideas. The legislature will build the state budget and it will fund our priorities, address our obligations, cut taxes and prepare Wisconsin for the future. We will continue to protect the state’s checkbook.”

(Link)
More Republican Reaction
Assembly Majority Leader Tyler August (R- Lake Geneva)

“We were looking forward to working with the governor to move our state forward. However, it is clear he has no intention of working with the legislature given the massive over-spending on his liberal wish list, combined with the tone he has taken in his recent speeches.

Only this governor could start with a surplus of several billion, unnecessarily raise taxes by over $1 billion, and still overspend into an unsustainable position. In fact, this makes three budgets in a row that Governor Evers has proposed a billion dollar tax hike on Wisconsin families and small businesses.

Quite simply, the governor’s proposal would grow government beyond the taxpayers’ ability to pay. Evers’ proposal is so far apart from Wisconsinites’ values and priorities that the legislature has no choice but to start from scratch.

Thankfully, the state is in a good position financially due to the fiscally responsible budgets passed by the Republican legislature in recent years. We look forward to crafting our own budget that invests in programs we value, while protecting taxpayers and lowering the tax burden.”

 (Link)
Democratic Leaders
Assembly Minority Leader Greta Neubauer (D- Racine)

"Governor Evers is delivering for Wisconsinites with proposals to invest in affordable childcare, our clean energy economy, our public schools and students, mental health initiatives, and so much more.

“Not only does the governor’s budget invest in the most pressing challenges for working families, but it also lays out a visionary plan for a brighter future for everyone in our state.

“By acting on the governor’s proposed $14 million investment in the clean energy economy and increased PFAS testing and clean-up, we can bolster our state’s energy workforce, create family-supporting jobs, reduce our long-standing disparities, and secure Wisconsin’s environment for future generations. To protect our environment and our livelihoods, we need bold action at every level — and this budget will help us accomplish that.

“Like Governor Evers said, we are in the strongest financial position since Wisconsin became a state. Now, we have a chance to come together and invest in all Wisconsinites. With Governor Evers’ leadership and this innovative budget proposal, I am confident Wisconsin is on the right track to thrive for years to come.” 

 (Link)
Senate Minority Leader Melissa Agard (D- Madison)

“As Governor Evers emphasized tonight, investing in Wisconsin’s families, workers, and retirees is a critical step in strengthening our workforce, supporting small businesses, and creating stronger communities. Under Governor Evers’ leadership, Wisconsin led the nation in share of federal American Rescue Plan Act (ARPA) dollars allocated to businesses and economic development. Unemployment rates in Wisconsin reached record lows recently, while our state’s labor participation rate trends above the national average. The Governor’s State of the State Address made it clear that he remains committed to bolstering our economy and increasing opportunities for workers during his next four years.

“Governor Evers understands that to have a prosperous economy in our state, we must ensure that businesses and families have access to broadband and high speed internet, that parents can afford quality childcare when they are at work, that are public schools are well equipped to prepare the next generation of Wisconsin adults, and so much more. The strength of our state’s economy is dependent on the strength of the working folks in Wisconsin. We all do better, when we all do better.

“We must continue to lift up our working and middle class by enacting sustainable, targeted tax relief, investing in good-paying quality jobs, and ensuring that our communities have the necessary resources to lift up ordinary Wisconsinites, and that is exactly what Wisconsin Democrats intend to do over the next four years. It’s time to put the economic needs of ordinary Wisconsinites first, from birth through retirement. My colleagues and I are more than ready to build upon the successes of the last four years and ensure that our economy, our communities, and our government works for everyone."

 (Link)
Rep. Kalan Haywood (D- Milwaukee)

“I am excited and energized to see that the governor is taking head-on an issue that is very important to me and the constituents I represent – access to quality, affordable, and safe housing. This comprehensive plan will invest over $300 million to help keep people in housing that is accessible and affordable, and invests an additional $100 million for property restoration, so working families can continue to work, live and learn as part of our communities. His plan will also increase tenants’ rights, and accountability for landlords. It is clear that Governor Evers recognizes that reinvesting the $7.1 billion surplus back into the people of this state will pay great dividends.

“Governor Evers recognizes that the key to keeping our democracy and way of life strong is to invest in the middle-class. Through a 10% middle-class tax cut, a $2.6 billion investment in K-12 education, and increased access to affordable healthcare, we will create an environment in which our middle class cannot only survive but thrive. I put my full support in this budget as it not only provides economic security, but seeks to return and preserve individual freedoms by protecting our voting rights and restoring the right to have an abortion.

“I look forward to working with the governor to make these priorities a reality and remain hopeful that the majority party will work with us to find commonsense solutions and policies that will move Wisconsin forward and ensure growth and prosperity now and for future generations.”” 

 (Link)
Sen. Dianne Hesselbein (D- Middleton)

“I was pleased to see such strong investments in bolstering our workforce, maintaining our economic momentum, and helping working Wisconsinites. Governor Evers presented a financially responsible budget that takes advantage of our unprecedented surplus by devoting resources to our kids, our communities, and our economy. We have an incredible opportunity to make up for some of the devastating cuts to public education, environmental protection, and workforce development under previous administrations and I am excited to see Governor Evers’ vision for the future.

“Governor Evers put forward commonsense proposals tonight and I hope that my colleagues on the other side of the aisle put their partisanship aside and do what is best for the people of Wisconsin. It is time that we follow the governor’s lead and invest in Wisconsin.” 

 (Link)
Joint Finance Committee Democrats

“The Governor’s budget demonstrates Democrats’ continued commitment to building safe and healthy communities and supporting our vibrant workforce for generations to come. Budgets are about priorities, and Governor Evers made clear tonight that his priorities remain rooted in doing what’s best for our kids, strengthening our economy, and protecting our natural resources.

“Governor Evers’ exceptional leadership through unprecedented challenges places our state in an extraordinary financial position, and we’re excited to continue the momentum. As members of the Joint Committee on Finance, we look forward to supporting the historic investments outlined in the Governor’s budget to make Wisconsin the best place to live, work, and raise a family.”

 (Link)
Budget Documents
Links to individual agency budgets
Additional Budget Documents
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Have a great day,
Wisconsin GR Team
Government Relations Team
One South Pickney Street, Suite 700
Madison, WI 53703
Phone: 608-257-3501
Fax: 608-283-2275