Last night, Gov. Evers released his 2025-27 budget proposal. TDA staff are still combing through the details and analyzing the proposal. 

Here is a summary of the governor's budget recommendations: 

Revenue

The governor proposes more than $400 million over the biennium in new ongoing revenue:

• Transfer annually from the general fund to the transportation fund an amount that approximates the change in sales tax generated from the sale of automotive parts, accessories, tires, and automotive repair and maintenance services between FY2020 and the fiscal year of the transfer, estimated at $129.2 million.
• Increase the vehicle title fee by $120, generating about $282.6 million.
• Up the driver's license renewal fee by $8.50, providing $7.5 million. 

Bonding

Bonding is up slightly in this budget proposal but about equal to the average over the last eight biennia. And still well below historical highs.

According to the administration, despite higher bonding levels, the debt service as a percentage of transportation revenue continues to decline with the infusion of new revenue.

Program Details 

Highway Programs

• State Highway Rehabilitation Program increases by approximately $400 million over the prior biennium. 
• Provide $19.5 million in State Highway Rehab in FY2026 to build additional sound barriers between 27th Street and 76th Street in Milwaukee along I-894.
• Enumerate the expansion, reconstruction, and modernization of the I-39/90/94 corridor from the Beltline in Madison through Wisconsin Dells.
• Major Highway Development Program funding increases by almost $200 million to fund the I-41 expansion project between Appleton and DePere, the USH-51 project in southern Dane County, and start work on the I-39-90-94 expansion.
• Southeast Wisconsin Mega Project funding is up more than $60 million to keep the I-94 East-West project moving forward. 

Local Aids 

• Fund the next round of the Local Road Improvement Program Supplement (LRIP-S) with $100 million GPR. 
• Provide $6 million from LRIP-S for improvements to the I-39-90-94 and CTH-V interchange in Dane County.
• Use $500,000 from LRIP-S for residential road development in Vernon County. 
• Increase the Local Road Improvement Program by 3% yearly, about $2.2 million over the biennium. 
• Up General Transportation Aids by 3% annually, $43.1 million in the 2025-27 biennium.
• Provide $20 million SEG to fund increases for routine highway maintenance agreements.
• Provide $35 million SEG for Highway System Management and Operations to fund the purchase of salt, improve roadway markings, and implement a wrong-way driver mitigation program.
• Provide $50 million for the Agricultural Road Improvement Program (ARIP). First-year funding will be a one-time GPR, and second-year funding will come from a one-time transfer from the forestry account of the conservation fund. 
• Create a new program with $60 million GPR over the biennium in funding for traffic calming grants to improve road safety and reduce reckless driving.
• Increase funding for county forest road aids by 3 percent in calendar years 2026 and 2027.     
• Raise state support (GPR) of Mass Transit Aids by 4 percent in each calendar year, roughly $7.2 million over the biennium, and provide $20 million GPR to the newly created transit capital assistance program to help transit agencies replace aging vehicles.
• Provide $5 million in GPR funding to hold harmless transit agencies from the reclassification of tiers due to the most recent census.
• Increase funding for the Specialized Transportation Assistance Program by $5.3 million over the biennium and increase Paratransit Aids by 20% annually, $1.5 million over two years.
• Raise Employment Access and Mobility Program funding by $532,800 over the biennium.

Ports, Rail, and Aviation 

• Provide $5 million over the biennium in transportation-support general obligation bonding for the Freight Rail Preservation Program.
• Provide more than $5 million SEG in FY2026 and more than $10 million SEG in FY2027 to support the operation of passenger rail service in Wisconsin and continue ongoing studies of passenger rail expansion routes across the state.
• Provide $33 million over the biennium, including $30 million in transportation fund-supported general obligation bonding, for dredging, seawall reconstruction, and other projects associated with the Harbor Assistance Program, including support for specific projects in Sheboygan and the Menominee Harbor.
• Provide $62,000 SEG annually for internships in the aviation industry for disadvantaged youths.

Policy Items 

• Modify the Local Road Improvement Program and Agricultural Road Improvement Program to include the replacement of aging bridges and culverts documented from a study on local bridges and culverts funded in the 2023-25 biennium.
• Prioritize deteriorated roadway elements identified by the ongoing local bridge and culvert assessment in LRIP-S and ARIP, allocating up to 10 percent of each program's funding to prioritize these projects. 
• Restore complete streets and eminent domain for paths.
• Reinstate a law that allows municipalities and counties to enter into agreements to create regional transit agencies anywhere in the state. 
• Create new synergies by attaching the Office of the Commissioner of Railroads to the Wisconsin Department of Transportation and increasing staffing and funding to the Office to expand railroad crossing safety efforts. 

Next, the Legislative Fiscal Bureau will analyze the governor’s budget proposal and issue a summary in about a month. In addition, the legislature will develop its plan for the 2025-27 budget. 

Budget Documents:

• Budget in Brief
• 2025-27 Executive Budget

MADISON - Governor Tony Evers has put forward a two-year budget proposal recognizing Wisconsin’s current transportation funding streams are insufficient to meet well-documented system needs. Wisconsin’s transportation network is interconnected and essential to the state’s economy as reflected in the plan’s key investments across the system. Transportation Development Association Executive Director Debby Jackson issued the following comment in response:



"We applaud Governor Evers continuing to take steps to address challenges facing the state's transportation system, and we welcome the inclusion of the vital I-39/90/94 project in his budget proposal and other critical investments from local roads to public transit. Transportation investment has been an area where bipartisan agreement led to significant progress in recent budgets, and we are optimistic that will be the case again this year. We look forward to working with the administration and the legislature to build consensus around the investments necessary to keep Wisconsin moving forward.”