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Politics
28 December 2024

Wisconsin Faces Crucial Budget Decisions Amid $4 Billion Surplus

Political divisions challenge bipartisan efforts for education funding and tax relief as new budget negotiations commence.

The Wisconsin Legislature is entering another fraught budget session with historic opportunities and challenges, particularly concerning education funding. With around $4 billion sitting as surplus, polarizing political dynamics have made it difficult to reach bipartisan agreements. The backdrop of the negotiations sees Republican lawmakers asserting control for the 15th consecutive year, presenting their budget priorities often at odds with Democratic Governor Tony Evers.

This budgetary atmosphere has seen Republicans repeatedly begin discussions by dismissing Evers' proposals, crafting their budget documents, and daring him to exercise his veto powers. Said one observer, can various political actors successfully split a $4 billion pie to cater to their constituents' needs without fracturing alliances? Despite the extensive surplus, harmony seems elusive as previous cycles have suggested.

Traditionally, budget sessions have been contentious, and as the Assembly and Senate gear up for the 2025-26 budget discussions, several issues are top of mind. The potential for bipartisan tax cuts and additional funding to alleviate the special education costs for school districts might form common ground for negotiation. The state currently covers one-third of special education costs for public schools, contrasting starkly with the 90% reimbursement rate for private schools benefiting from voucher programs. This discrepancy has drawn criticism and calls for rectification from education advocates.

The anticipated expenses to address these pressing issues are significant. Wisconsin's State Superintendent of Public Instruction, Jill Underly, has laid out proposals requesting as much as $4 billion for educational funding. Simultaneously, the University of Wisconsin system is aiming for $855 million, and the Wisconsin Technical College System has requested $45 million. Service providers for childcare are also advocating for additional investments totaling $2 billion to support wages and make quality care more affordable for families.

Governor Evers is poised to announce his budget priorities during his address to the Legislature this February, setting the tone for negotiations to follow. Among his apparent objectives is the introduction of targeted tax relief aimed at lower income brackets, particularly those earning below $100,000 annually, as opposed to Republican proposals favoring higher earners. Drawing from past budgetary debates, both parties seem set for conflict around the same core themes: tax cuts, education funding, and healthcare initiatives.

Highlighting the urgency of proper funding allocation, Democratic legislators have articulated priorities encompassing not just education, but also the expansion of Medicaid under the federal program BadgerCare, bolstering financial assistance for childcare, and tackling issues surrounding clean drinking water. These priorities reflect the diverse needs of Wisconsin residents and the pressing issues many face, including rising property taxes due to recent school referenda.

A significant surge of school districts turned to referenda this year, with more than half seeking voter consent for additional funding, leading to property tax increases projected to rise more than $30 million or roughly 6% compared to last year. With many districts relying heavily on local property taxes—due to rigid revenue limits unchanged for three decades—this trend leads to inequities, often disadvantaging lower-income communities unable to raise sufficient funds.

Voicing the need for reform, Christian Phelps, Representative-Elect for the 93rd District, remarked, "It is inherently dis-equalizing and unfair to make local property taxpayers be the only tool at school districts' disposal. This should not be about watching disparities widen." Such sentiments echo among constituents, emphasizing the need for more state-funded initiatives to relieve tax burdens and address educational funding gaps.

The current political calculus limits the potential for swift resolutions. Republican legislators are facing internal and constituent pressures around how to address school funding effectively, as evidenced by their silence when approached for comments about the budget proposals. The continued refusal from House Republicans to release approximately $125 million earmarked for cleaning up PFAS contamination also adds to the mounting frustrations, especially amid calls for addressing environmental health alongside educational financing.

Even with $4 billion available, the challenge remains finding consensus on how to allocate those funds without exacerbation of existing divides. Advocates for childcare, education, and healthcare seek to maintain pressure on leaders, urging them to collaborate and work for solutions beneficial to all Wisconsinites.

The stakes surrounding this budget are high, not just politically but also socially, with children and families depending on well-supported education systems and the health of their environment. With partisan tensions high, the coming months will show whether Wisconsin can move past its entrenched divisions and seize the opportunity to enact meaningful change.

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