From everyday people to Democrats running for governor, responses to surplus plan failing are mixed

MILWAUKEE (CBS 58) -- Wisconsin won't be spending most of its surplus, after all. A $1.8 billion plan to spend most of the state's surplus on school funding, tax relief and direct rebate checks to taxpayers failed in a dramatic late-night vote Wednesday.

A day later, responses from blue-collar people and Democratic candidates for governor were mixed.

The plan would've provided a little more than $300 million in special education funding to districts statewide, about $300 million in general school aid, which would've lowered property taxes, sent direct rebate checks to taxpayers and eliminated the state income tax on tips and overtime wages.

In a pair of odd alliances, Democratic Gov. Tony Evers joined GOP legislative leaders in crafting the deal, which combined their priorities for a projected $2.5 billion surplus. 

Congressman Tom Tiffany, the Republican candidate for governor, along with Democrats in the state Senate, rallied against the bill. Each argued too much of the surplus went toward unnecessary items. Underneath those comments were also political interests: winning in November would also come with the ability to work with a full surplus.

At Michael's Family Restaurant, just west of downtown, diner James Westphal said he tended to support Democrats and was disappointed lawmakers in that party largely voted to reject the rebate checks and tax relief.

"I don't think they should hold off on doing it," Westphal said. "I think, as soon as they get the money, they should put it down on what they need to fund."

Westphal said he suspected election politics were one of the motivating factors for Tiffany and Democrats who rejected the deal.

"I think what they're doing is holding onto that money, and they're using it as a carrot in front of a bunny," he said.

On the south side, at Orenda Cafe, server Edid Zaragoza explained why it's a complicated issue for people struggling to get by. She said the marginal increase in wages that would come with the overtime/tip tax exemption could end up costing some people more in benefits.

"Many people I know are in that poverty level, that they will get reduced lunches or things like that," Zaragoza said. "And if do take out the tax from the tips and things like that, they will not be eligible to do that."

While Tiffany worked to kill the Evers-GOP surplus plan -- one GOP senator's office told CBS 58 Wednesday on the condition of anonymity the senator told Tiffany to stop trying to sway senators' votes -- the Democratic candidates had a varied set of reactions.

Missy Hughes, the former CEO of the Wisconsin Economic Development Corporation, was the only Democratic candidate to fully endorse the Evers-GOP plan. On Thursday, she blasted Tiffany over his efforts to derail the surplus plan, and she also criticized Democrats who rejected the compromise.

"Shockingly, Tiffany was aided and abetted by certain self-serving Democratic candidates for governor," Hughes said in a statement posted to social media. "Who would rather boost their own personal political ambitions than serve our kids and taxpayers."

State Rep. Francesca Hong (D-Madison) and State Sen. Kelda Roys (D-Madison) were the two most outspoken Democratic candidates against the plan. Roys called the plan a "band aid" on social media while Hong called it a "payday loan," drawing a harsh response from Evers.

Both Roys and Hong made posts Thursday reiterating their opposition to the now-failed surplus plan.

Democratic candidates Lt. Gov. Sara Rodriguez and Milwaukee County Executive David Crowley made public appearances Thursday in Milwaukee. When asked by a CBS 58 reporter whether she would've voted yes on the Evers-GOP surplus plan, Rodriguez declined to say, instead looking ahead to November.

"This is what we know," Rodriguez said. "We need to make sure we have both majorities in the Assembly and the Senate, with a Democratic governor, and that's why the election in 2026 is so important."

Crowley also was indirect on whether Democrats in the Legislature made the right decision, but he added electoral politics should not have been a consideration for anyone.

"I believe this really speaks to the fact we need more collaboration," Crowley said. "More say-so in how we're going to continue to spend this surplus down, but I don't believe we should be making decisions based off of who we believe is going to be in power next session."

Former Lt. Gov. Mandela Barnes and former Department of Administration Secretary Joel Brennan were noticeably quiet on the subject Thursday. Barnes posted about utility rates while Brennan posted about Hmong-Lao Veterans Day and shared a campaign video.

While some of the political candidates exercised caution in their responses to Thursday's vote, Westphal was direct.

"Once they have the money and they're able to use it," he said. "They should use it as soon as possible."