Evers, Republican leaders announce bipartisan deal on schools, property tax relief and direct payments to families
MADISON, Wis. (CBS 58) -- Governor Tony Evers, Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahier announced Monday, May 11, they have reached a bipartisan agreement to spend a portion of the state's surplus on K-12 schools, property tax relief and direct payments to working families.
The package reportedly includes more than $600 million for K-12 schools, the largest increase to the state's special education reimbursement rate in state history, bringing the rate to 50%, according to the governor's office. That portion of the deal is what the governor said he was most proud of.
“It’s good for special ed kids,” Gov. Evers said. “Also, school districts have to put money into that system. This is a way for them to use that money elsewhere, because the state will be picking up more.”
It also includes $300 million in general school aid and $50 million in additional property tax relief through the Wisconsin Technical College System. Under the deal, Wisconsin residents who filed individual income tax returns for 2024 with at least 90% of income from Wisconsin sources would receive $300, while married couples filing jointly would receive $600, with the announcement noting over 3 million Wisconsinites would be eligible.
“It will be handled just like when you get a tax refund,” Evers said. “So, anything for those that are in that situation, that’s going to happen the same way.”
The agreement also eliminates state income tax on cash tips and overtime pay. Unlike the federal tax cuts on these two items, this would be permanent and not expire.
But many Democrats are slamming the deal.
State Senator Kelda Roys, a Democratic candidate for governor, told us, "I think this is all about Robin Vos trying to do one final 'screw you' to Wisconsin taxpayers on his way out the door."
Roys called it "the height of fiscal irresponsibility" and the rebate checks an "election year gimmick."
"We need to be prepared for Wisconsin families to be really struggling in the coming months and years," Roys said.
Roys did not criticize Evers by name but said negotiations should have been held in the open.
Evers defended it, telling reporters, "That doesn't happen with a regular budget, too. So if she's going to be governor, she may as well get used to it."
Several other candidates shared their frustration.
Joel Brennan served in Evers' administration prior to his run for governor.
Of negotiations, Brennan said, "I believe they must be done in public with input from Wisconsinites. It's very disappointing that this one wasn't."
And Francesca Hong said she'd be a "no" vote in the House on what she called a "backroom deal" and a simple "payday loan."
Hong said, "The checks Wisconsinites might get this spring will be gone by summer."
And Minority Leader Dianne Hesselbein slammed it: "From my perspective, there is no deal. Three men who will not be in elected office next year have come up with this proposal which Senate Democrats will be reviewing."
But there were plenty of supporters applauding the deal.
DPI Superintendent Dr. Jill Underly hoped the momentum continues.
Underly said in a statement: "Students should not have to resort to suing the state to receive stable funding for public education. I hope today marks the beginning of continued partnership and progress."
Locally, MPS has been desperate for revenue amid a budget deficit crisis that has led to hundreds of job cuts.
MPS Superintendent Dr. Brenda Cassellius called for full funding.
A statement said the district is still looking into how its budget will be impacted, telling us once the numbers are known, "we will work quickly to share with the Milwaukee Board of School Directors, families, and staff a proposal for allocating any anticipated resources in our budget for the next school year."
These new budget items are expected to be paid for with the general fund and the state’s rainy-day fund. The rainy-day fund is projected to see an increase in the coming months, which Evers' office said is one reason they are using a portion of it to pay for these additional items.
The package is set to go before the Joint Committee on Finance on Tuesday, May 12, with full legislative votes expected Wednesday.
Gov. Evers said in the announcement he anticipates signing the proposal as early as next week.