According to a press release, Gov. Tony Evers has enacted the 2023–25 biennial budget with improvements by using his broad veto authority.
Highlights of the 2023–25 biennial budget and Gov. Evers’ line-item vetoes include but are not limited to:
- An increase in shared revenue for local communities, providing a $275 million boost in state aid to localities by funding the supplemental county and municipal aid program created by 2023 Wisconsin Act 12;
- An overall increase of nearly $1.2 billion in spendable authority for public school districts, a $325 per pupil increase on revenue limits in each fiscal year, and an increase in the low revenue ceiling from $10,000 to $11,000 per pupil in the first year of the biennium;
- A $525 million investment in workforce housing;
- Several key investments in Wisconsin’s roads, including $555.5 million to fund transportation projects underway or under development;
- The provision of $125 million to address and prevent PFA contamination statewide and several investments in projects across the state that support the conservation and preservation of natural resources;
- The provision of $1 million GPR in each year to help build Wisconsin’s agricultural brand in international markets and increase agricultural exports through the Wisconsin Initiative for Agricultural Exports program;
- Tax relief for the bottom two income tax brackets to provide $175 million of individual income tax reductions over the next two years;
- Investments in child care for working parents ensuring $15 million in fiscal year 2023–24 at the Wisconsin Economic Development Corp. can be used for grants to child care providers rather than loans; and
- Support for the UW System, allowing the retention of 188 employees with work related to diversity, equity, and inclusion on UW System campuses.
Republicans decried some of the veto provisions including Evers use of vetoes to reduce an income tax cut from $3.5 billion to $175 million and increase school spending to $325 per pupil. They said that both moves would undermine Wisconsin’s business climate and the ability to attract and retain employees because it would increase the state and local tax burden for middle class families.
The Wisconsin Bankers Association praised a change that provides banks an income tax exclusion on income earned from commercial loans for business or agricultural purposes of $5 million or less where the borrower resides, or is located, in the state of Wisconsin.
The Wisconsin Farm Bureau lauded $150 million budgeted for Agricultural Road Improvements.
Bill G. Smith, National Federation of Independent Businesses State Director in Wisconsin, was disappointed that Evers did not veto a provision in the budget Republicans wrote and approved that increased the Retailers Sales Tax Discount. Smith said as a result, big box retailers will receive millions of dollars in sales tax revenue. The budget provision increases the current discount cap from $1,000 per filing to $8,000.
