Wisconsin Senate rejects plan for stimulus checks, school funding and tax cuts

MADISON, Wis. (CBS 58) -- After hours of delays on Wednesday, May 13, Gov. Tony Evers’ bipartisan agreement with Republican leadership died in the Senate and did not pass.

Wisconsin senators voted down an economic relief plan endorsed by Gov. Evers and touted by Republican leadership. Three Republicans joined Democrats in voting no. The bill passed out of the State Assembly with a vote of 61-31 and failed in the Senate with a vote of 18-15.

The bill would have provided stimulus checks to some Wisconsin residents, permanently eliminated the state income tax on overtime and tips and directed more than $600 million to schools across the state. Supporters said the funding also would have lowered property taxes.

Republicans called the vote disappointing, while Democrats said they acted responsibly on fiscal concerns.

“We had an opportunity together as two different parties to work together in a bipartisan matter. Unfortunately, my Democratic colleagues did not follow through, did not work as a team, and we are now left with the surplus not going back to the individuals who paid in to it in the state of Wisconsin,” said State Sen. Rachael Cabral-Guevara, a Republican representing Fox Crossing.

Democrats throughout the process called the bill irresponsible, citing concerns about the economy, especially as economic indicators show inflation is not slowing. The latest producer price Index shows inflation at its highest level since 2022.

“This is not a surplus that is sitting in a checking account somewhere. This is a projected surplus that may materialize next summer. It is not money that the state already has, it is money that the state is anticipating having, so why spend money at such a great degree,” said State Sen. Kelda Roys, a Democrat representing Madison.

Gov. Evers later released a statement blasting U.S. Rep. Tom Tiffany and lawmakers for what he called tanking school funding, property tax relief and direct payments to Wisconsinites. His statement is below.

The proposal, announced earlier this week by Gov. Evers, Wisconsin State Assembly Speaker Robin Vos, R-Rochester, and Wisconsin State Senate Majority Leader Devin LeMahieu, R-Oostburg, after months of collaboration and negotiation, would have invested more than $600 million in Wisconsin’s K-12 schools, including the largest increase to the state’s special education reimbursement rate in state history to attain 50%, as well as investing more than $300 million in general school aids. The plan also would have provided tens of millions of dollars in statewide property tax relief through Wisconsin Technical College System aid, made direct payments to working families struggling with rising costs, and eliminated state income tax on tipped and overtime income.

Instead, multiple lawmakers helped tank the bipartisan bill — some purportedly after phone calls with Congressman Tiffany — insisting the state’s multibillion-dollar surplus should not be used today and instead remain in Madison until next year. Because the bipartisan bill failed:

• K-12 schools across Wisconsin will no longer receive a boost of more than $600 million, which supporters said would have helped schools avoid budget cuts and shortfalls during the current school year, despite the Wisconsin Legislature rejecting $7 billion for K-12 schools over the last four state budgets proposed by Gov. Evers;

• Wisconsinites will see no property tax relief, and members of the Wisconsin Legislature have now opposed repeated plans offered by Gov. Evers to respond to rising property taxes, even as school referendums continue at record-high levels across the state;

• Working Wisconsinites will continue to pay $400 million in state income taxes on tipped wages and overtime income over the next two years; and

• $850 million will not be returned to taxpayers, and 3 million Wisconsinites will no longer receive direct refunds from the state’s multibillion-dollar surplus, even as war, tariffs and inflation continue driving up costs.

Gov. Evers blasted Congressman Tiffany, as well as the small group of Republican and Democratic lawmakers who opposed the proposal.

“Wisconsin’s kids and schools aren’t going to get the investments they desperately need this year because Tom Tiffany and a few Republican and Democratic lawmakers chose to blow up a bipartisan plan to invest in our K-12 schools, lower property taxes, and help working families afford rising costs, all because they’d rather do what’s best for the next election than what’s right for the people of our state.

“So many Wisconsinites feel left behind, frustrated, and disillusioned by politics these days because they think a lot of politicians in the Capitol are only here to serve themselves.

“And, today, they’re right.”