Gov. Evers signs state budget into law with few dozen vetoes to boost school aid, reduce tax cuts

 

MADISON, Wis. (CBS 58) -- Gov. Tony Evers made a few dozen vetoes before signing the state's two-year budget into law including using his veto authority to increase aid to K-12 schools, tweak Republicans tax cut proposal, and acted to retain nearly 200 University of Wisconsin employees that work on diversity efforts. 

By using his partial veto powers, Evers raised revenue limits for public school districts by $325 per student for the next 402 years or until 2425. Evers, the former state superintendent of schools, said the move would give districts “predictable long-term spending authority." Meanwhile, Republicans warned it could raise property taxes in the coming years.  

Assembly Speaker Robin Vos (R-Rochester) said taxpayers will "bear the burden" of Evers' veto addressing per-pupil funding. 

"By allowing this level into the future, homeowners will experience massive property tax increases in the coming years," Vos said. 

The boost in aid comes after Evers and GOP leaders made a deal to invest $1 billion in public schools over the biennium as well as increasing per pupil payments to private voucher schools in part of a larger compromise to send more money to local governments, known as shared revenue. 

Evers also tweaked Republicans' tax cut proposal that would have issued $3.5 billion income tax cuts across the board which Democrats argued would largely benefit the wealthiest earners. Instead, Evers scaled that back to $800 million by not combining the state's four income brackets into three, as Republicans proposed.

"By using my board veto authority, I'm doing what I can to ensure tax relief goes to working families that need help affording rising costs, not the wealthiest taxpayers in Wisconsin," Evers said. 

Republican lawmakers believed their tax cut proposal would help Wisconsin become more competitive with neighboring states that have either a flat tax or simpler tax code. Vos said Evers' decision will create another economic disadvantage for Wisconsinites and "provide hardly any tax relief for truly middle-class families."

Evers cut the state's top two income tax brackets while maintaining tax reeducations for the third highest income bracket by dropping the rate from 4.65% to 4.4%, and then reducing the bottom rate slightly from 3.54% to 3.50%.

That means tax cuts would be directed to the lowest two tax brackets or individuals making less than $27,360 a year, while the highest income earners would also benefit but still have to pay higher rates. 

"With his veto message today, Governor Evers said, F*** the taxpayers, they don't know a G** d*** thing about spending their own money," said Sen. Van Wanggaard (R-Racine). "These vetoes aren't the work of a rational governor. They are the conscious decisions of a radical governor."

Senate Majority Leader Devin LeMahieu said Evers had a chance to sign the largest tax cut in state history, instead "he chose to keep more than $2.7 billion in Madison rather than in the pockets of hardworking families."

Those changes come about two weeks after the GOP-controlled Joint Finance Committee wrapped up the months-long process of crafting the next spending plan. 

After Republicans on the committee included cutting $32 million from the UW System for diversity efforts and removing 188 positions related to diversity, equity and inclusion, Evers used his veto pen to retain those positions after threatening to veto the entire budget if they included those cuts. 

Evers said he decided not to do that because Republicans added a provision that would allow the UW System to preserve the $32 million if they present a plan to the committee detailing how those funds would be used to help bolster the workforce. The committee will have absolute discretion whether to approve, reject or change that proposal when its presenting to them. 

Evers added vetoing the entire budget would mean "abandoning many of his key priorities" since the final product includes several investments he's rallied for since taking office in 2019, such as more than $500 million in the budget for workforce housing, $1 billion for K-12 schools, $125 million to combat PFAS, and increasing shared revenue to help counties and municipalities pay for police, fire and other essential services the public relies on. 

"Even though I'm glad the legislature joined me in making critical investments in many key areas, the fact of the matter remains this budget remains imperfect and incomplete," Evers said during a press conference in Madison. 

BREAKING: I'm signing the 2023-25 biennial budget, with substantial improvements provided by my vetoes, making historic investments in communities, expanding affordable housing statewide, and addressing PFAS contamination. ? pic.twitter.com/o84tWnTM7D

— Governor Tony Evers (@GovEvers) July 5, 2023

In total, Evers signed the budget with 51 line-item vetoes. It marks the third time he's signed a budget crafted by Republican lawmakers.