MADISON, Wis. – In a flurry of late-night activity, Wisconsin Governor Tony Evers finalized a new two-year budget early Thursday morning, an effort crucial for securing federal Medicaid funds under impending budgetary changes proposed by Congress. The budget, totaling $111 billion, faced swift negotiations and approvals, culminating in votes just hours apart in both legislative chambers.
On Tuesday, Evers, alongside Republican lawmakers, announced a compromise budget. The proposal gained momentum with Senate approval on Wednesday night, followed by a quick Assembly vote just before 1 a.m. on Thursday. Within minutes of its passage, Evers signed it in his conference room.
Democrats, however, voiced dissatisfaction with the agreement, arguing that it fell short of vital investments in education, child care, and Medicaid expansion. Despite their opposition, Evers characterized the compromise as the best available solution, emphasizing the importance of collaboration in governance.
“I believe most Wisconsinites would say that compromise is a good thing because that is how government is supposed to work,” Evers remarked after signing the budget.
The budget introduces several key reforms affecting many residents across the state. It features significant income tax reductions amounting to $1.4 billion, the elimination of sales taxes on residential electric bills, and increased fees for services such as driver’s licenses and vehicle registrations.
The urgency for swift approval centered primarily around a provision that raises the hospital assessment to fund the state’s Medicaid program. Under federal guidelines, this increase from 1.8% to 6% is critical for Wisconsin to access matching federal funds. If Congress enacted its proposal before the state raised the fee, the state could forfeit up to $1.5 billion essential for rural hospitals.
“Getting this done today ensures we can access vital federal support,” said Republican Assembly Speaker Robin Vos, who led the push for expedited votes.
Typically, there is a lag between legislative approval and the governor’s signature, but Evers signed the budget almost immediately, reflecting heightened stakes. The Senate narrowly passed the budget with 19 votes in favor, including support from several Democrats, while the Assembly passed it by a 59-39 margin.
Republicans made concessions to gather bipartisan support, including increased funding for special education, subsidies for child care, and significant appropriations for the University of Wisconsin System. However, these fiscal measures are likely to lead to higher property taxes in numerous school districts due to a lack of general operational aid.
Negotiations bore fruit partly due to shifting legislative dynamics, which saw Democrats gain seats in the last election. Democratic Senator Mark Spreitzer noted that this change provided leverage for more meaningful discussions, although he acknowledged the budget still failed to meet crucial needs.
Evers opted to veto a specific provision that imposed a deadline for closing the aging Green Bay Correctional Institution, stating the need for a robust plan before committing to such actions. He referenced past experiences where legislative deadlines were met without adequate planning, compromising outcomes for the community.
In addition, Evers exercised his veto power to eliminate a $100,000 runoff control grant for the town of Norway, criticizing Republican lawmakers for allowing the Warren Knowles-Gaylord Nelson Stewardship Program to lapse. He contended that the grant would benefit a selected few while neglecting broader conservation efforts.
As the dust settles on this budget, residents and lawmakers alike continue to assess its implications for Wisconsin’s future, particularly in areas such as education and healthcare funding.