(The Center Square) – Gov. Tony Evers on Wednesday signed the new two-year $99 billion state budget.
The governor is keeping all of the spending in the new state budget while getting rid of almost all of the tax cuts that Republicans wanted.
“In addition to the critical efforts to expand access to affordable housing statewide, address PFAS in our water, and make historic investments in communities across our state, I am also pleased this budget provides substantial and well-deserved increases in compensation for correctional officers, youth counselors, psychiatric care technicians, assistant district attorneys, and public defenders,” Evers said in a statement. “But even as I am glad the Legislature joined me in making critical investments in several key areas, the fact remains that this budget, while now improved through strategic vetoes, remains imperfect and incomplete.”
Republicans included $3.5 billion in income tax cuts in the budget, which the governor largely erased by vetoing cuts for Wisconsin’s top two income tax brackets.
The Republican plan was written to cut Wisconsin’s top income tax rate of 7.65% to 6.5%, which means a 15% tax break for married couples making over $405,550 a year. The same married couple making between $36,840 and $405,550 would see their income tax rate go from 5.3% to 4.4%, which is a 17% tax cut.
The governor called those tax adjustments “cuts for millionaires.” He left $175 million in tax cuts for lower earners in the state budget.
Some Republican lawmakers are furious.
“Last year Governor Evers campaigned on Republican tax cuts; now that he’s been re-elected, he shows his true colors,” Sen. Patrick Testin, R-Stevens Point, said Wednesday. “The Governor’s partial veto of the legislature’s tax cut hurts taxpayers, hinders Wisconsin’s ability to attract new talent, and stifles our potential for growth. Evers politically motivated actions will have real life consequences for our future.”
Sen. Julian Bradley, R-Franklin, also expressed his disappointment in a tweet: “During a time of record inflation, Gov. Evers included tax increases in his budget proposal. Today, he vetoed BILLIONS in tax relief from the budget GOP Lawmakers passed. He believes the government can spend your money better than you can. He’s wrong.”
Evers did not veto the $32 million shift in the University of Wisconsin’s budget aimed at defunding diversity, equity, and inclusion efforts in the UW System. But the governor used a partial veto to protect the nearly 200 jobs that lawmakers wanted to eliminate.
In all, Gov. Evers issued 51 partial vetoes to the new state budget. Two years ago, Evers issued 50 partial vetoes, and he issued 78 partial vetoes to the first budget he was presented back in 2019.
One specific Republican was pleased with the budget as signed by Evers.
“I am happy to see the governor sign this historic budget bill into law,” State Sen. Rachael Cabral-Guevara, R-Appleton, said in a statement. “Months of negotiations have led up to this bipartisan moment: tax cuts, investments in critical infrastructure, and historic funding for our schools is now law.”
Cabral-Guevara continued: “This budget addresses the need for chiropractic reimbursement parity, investments into our surgical collaboration, child care, local mass transit, upgrades to our state’s campaign finance system, improved district attorneys wages, and so much more.”
The senator added she was grateful for securing funding for such “critical investments” as the Appleton International’s terminal expansion project.
“So, today, I am giving the Legislature a second chance. I am using my broad, constitutional veto authority to ensure ample state resources are readily available for the Legislature to complete their work on this budget – to do the right thing, to rise to meet this moment of historic opportunity and responsibility, and to focus on passing real solutions for the urgent challenges facing our state,” the governor said at the end of his budget-signing speech.
