MADISON – The Legislature’s finance committee on Tuesday approved a bipartisan deal to deliver $1.8 billion in new funding to schools, property tax relief and income tax rebate checks, sending the bill to the full Legislature for votes.
But the committee vote itself fell on party lines, with all 12 Republicans in support and all four Democrats opposed.
Despite the backlash from Democrats, Gov. Tony Evers told reporters Monday he believes there are enough votes for the package to clear both the Assembly and Senate. In a news conference Tuesday, Joint Finance Committee co-chair Rep. Mark Born, Beaver Dam, said he looks forward to it passing both chambers “in the coming days.”
“I’m excited to be talking today about the big, beautiful, bipartisan agreement that we’ve been working on for several months with Gov. Evers,” Born told reporters. “One of the things I’m excited about with that bill is over 80% of it is sending money back to the taxpayers. I think that’s something that should be a top priority right now in these high inflationary times.”
The Assembly is expected to convene Wednesday morning. A spokesman for Senate Majority Leader Devin LeMahieu did not respond to an inquiry about the chamber’s plans.
The proposed deal will tap into the state’s projected $2.5 billion surplus that, until now, lawmakers have been unable to agree on how to spend. Evers announced the deal on Monday with the support of LeMahieu and Assembly Speaker Robin Vos, both Republicans.
The legislation would spend about $850 million on direct payments to income taxpayers. Individual filers would receive up to $300 or the equivalent of their tax liability (whichever is lower); that figure is $600 for married joint filers.
It also would lower property taxes by directing hundreds of millions in state funds to schools and technical colleges, reducing the funding burden on property taxpayers, and provide a record increase for special education funding by bringing the state’s reimbursement rate to 50% by the end of the 2027 fiscal year.
The deal also eliminates taxes on some tips and overtime.
Democrats have largely been critical of the deal, as have some Republicans, including U.S. Rep. Tom Tiffany, who is running for governor.
Asked about Tiffany’s criticism of the proposal – he referred to the one-time tax rebates as “chicken feed” – Born said lawmakers are working to deliver economic relief in the current political reality, where Republicans control the Legislature and the governor is a Democrat.
“We have to work with the governor who’s here, because folks need help now,” Born said. “These things are hitting our pocketbooks at home right now, and so we can’t wait for reinforcements. We can’t wait for a new governor. The surplus is here. The governor we have is here. We negotiated with him to help the taxpayers now. That’s what this bill does.”
Ahead of the Joint Finance vote, Sen. Kelda Roys, a Madison Democrat on the committee who is also running for governor, invoked Republicans’ criticisms of the bill, including quoting Tiffany.
“I find myself shocked to be agreeing with Republican Tom Tiffany, shocked to be agreeing with Republican [state Sen.] Steve Nass, that this is a deal that does not help us fix the significant long-term structural problems we have, namely the way that we have robbed our children of their futures in defunding public education,” Roys said.
Rep. Tip McGuire, D-Kenosha, wore a tie with a duck print on it “in honor of the three lame ducks that brought us here today,” he said as the committee began its work. Evers, Vos and LeMahieu are all retiring at the end of the year.
Democrats on the committee praised the additional special education funding but criticized other elements of the plan.
McGuire focused on the tax rebate provision, arguing it doesn’t do enough for the state’s most vulnerable.
“More funding for our schools is a win for Wisconsin, and when there is a win, we should celebrate a win. But a one-year tax break is not a long-term fix,” said Rep. Deb Andraca, D-Whitefish Bay. “This deal squanders our surplus without actually meeting our needs for the long-term.”
Democrats also raised concerns about external factors like the Iran war or other federal policies on the state’s economic forecast.
“We could be heading into a Trump recession in the next couple of months. Economic indicators are very worrying, and when you actually talk to human beings, you find that they are really nervous about their economic security,” Roys said. “If the economy does not improve and if we actually go into a recession, we are not going to be in a good position to be able to meet people’s needs.”
Born said he’s “very comfortable” with the state’s financial position going forward with this proposal. Both he and an Evers spokeswoman this week have noted the deal does not spend down the entire projected surplus, and it does not tap into the state’s rainy day fund of more than $2 billion.
Jessie Opoien can be reached at jessie.opoien@jrn.com.
This article originally appeared on Milwaukee Journal Sentinel: Tax relief, school funding deal clears hurdle, moves to final votes
Reporting by Jessie Opoien and Molly Beck, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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