KEY POINTS
- Wisconsin’s budget surplus is expected to reach around $6.6 billion by July.
- Governor Evers is already planning how he wants to allocate the money. Unsurprisingly, he has called for even more increases in public school funding despite the states floundering public education system.
- Republican co-chairs, Sen. Howard Marklein and Rep. Mark Born of the Legislature, have clarified that this hefty surplus does not give the governor a blank check; the money should benefit taxpayers.
- The Governor will submit a two-year spending plan in February 2023. After that, the Legislature will have their hands full concerning reworking the plan, which will eventually pass around July.
- “I think we have another opportunity to reduce the tax burden on Wisconsin’s hardworking families, lower the income tax, work towards a flatter tax rate, eliminate the personal property tax,” LeMahieu said.
Wisconsin’s budget surplus is expected to reach around $6.6 billion by July; this number is $5 billion higher than the initial estimate. Governor Evers and the Republican-controlled Legislature will have a massive piggy bank to break into in 2023.
Governor Evers is already planning how he wants to allocate the money. Unsurprisingly, he has called for even more increases in public school funding despite the states floundering public education system. He stated, “This unprecedented surplus presents an unprecedented opportunity to make critical investments in Wisconsinites and the future of our state.”
Republican co-chairs, Sen. Howard Marklein and Rep. Mark Born of the Legislature, have clarified that this hefty surplus does not give the governor a blank check; the money should benefit taxpayers.
The co-chairs commented on the matter, “Instead, it gives us the flexibility to fund the programs and agencies that are necessary for prosperity in Wisconsin while cutting taxes to benefit all Wisconsin Taxpayers.”
However, Evers isn’t easily persuaded and is already itching to spend the money. The Governor will submit a two-year spending plan in February 2023. After that, the Legislature will have their hands full concerning reworking the plan, which will eventually pass around July. Evers will ultimately be able to challenge ideas via his veto pen.
“I don’t want to prejudge our caucus. I think that most of us know that with our large surplus, it shouldn’t be spent on expanding the size of government,” said Assembly Speaker Robin Vos. “I still believe that we need to make sure we return as much as we can back to the taxpayers, but now we have to figure out the right answer with a Democrat governor.”
A report from the Department of Administration stated the state is in “the strongest fiscal condition in its history” and called the surplus “remarkable.” The report also summarizes state agency budget requests for funding over the next two years.
The positivity regarding the fiscal outlook has much to do with COVID aid. Copious amounts of federal taxpayer money had been dumped into local and state governments. Unfortunately, this loose spending has also contributed to skyrocketing prices for the average Wisconsinite. Tax cuts proposed by Republicans could ease the blow for Wisconsin’s hard-working residents and families.
A grand opportunity like this should unite both sides to find the best solutions and pathways to help Wisconsinites. Still, this surplus will most likely lead to plenty of disagreements and clashing over how to spend the money.
“I think we have another opportunity to reduce the tax burden on Wisconsin’s hardworking families, lower the income tax, work towards a flatter tax rate, eliminate the personal property tax,” LeMahieu stated. “Then we still have extra room to invest in core government functions that are probably facing inflationary pressures just like everybody else.”
LaMahieu added, “If we’re going to make investments in schools, we’re probably going to need some change, also, to the school choice program, as well, look forward to having these discussions actually with the governor this session, unlike the last session.”
Other issues on the table include compromising on the state’s abortion ban, election law changes, marijuana legalization, parole policies, and PFAS pollution. Robin Vos suggested he would meet halfway with Evers if he would consider more conservative priorities, such as tax cuts. Vos also said he would be willing to spend more on schools if Gov. Evers would change his stance on universal school choice.
