Here's what's happened so far on the state budget, and where the plan goes from here

Hope Karnopp
Milwaukee Journal Sentinel
Assembly Speaker Robin Vos, R-Rochester, speaks about the proposed budget during a news conference on the floor of the Assembly at the Capitol in Madison on Tuesday.

MADISON - Both houses of the Republican-controlled state Legislature passed the state's two-year budget on Wednesday and Thursday with all Republicans and a handful of Democrats supporting the $87.5 billion plan.

Here are the major takeaways from the spending plan so far, which is now headed to the desk of Democratic Gov. Tony Evers. 

GOP aims to lower income and property taxes

The Republican plan lowers income taxes by $2.75 billion over two years, primarily by lowering the tax bracket that includes individuals making $24,000 to $263,000 and married couples making $32,000 to $351,000. 

Those earning $40,000 to $50,000 a year would see their annual income taxes drop by about $115, while those earning $125,000 to $150,000 would see their income taxes go down by about $1,000. 

About three-quarters of the cuts would go to those making $100,000 or more a year, according to the nonpartisan Legislative Fiscal Bureau. 

The Republican plan also reduces property taxes by $650 million, which would lead to about a $100 reduction in December for a typical home

Republican lawmakers were able to propose the cuts because the state is expected to take in $4.4 billion more revenue than previously projected. Democrats had wanted more of that amount to go toward investments in schools and other government programs.

Education funding meets federal requirements; some districts say it's not enough

The Republican plan invests $128 million in additional taxpayer funding, less than 10% of what Evers proposed. 

Republican lawmakers questioned the need for a large increase in school funding as school districts are receiving $2.6 billion in federal funding due to the pandemic. 

Some school administrators expressed disappointment with the level of state funding and say that the federal dollars cannot replace school districts' normal obligations.

The Republicans' property tax plan technically qualifies as school funding, which means the state can meet its funding commitment and avoid losing out on federal funding for schools. Democrats are concerned that it will not put new money into classrooms.

I-94 approval, reversing course on driving test waiver

The budget approves an expansion of I-94 in Milwaukee. Evers has called for the project, which was called off by former Gov. Scott Walker 3½ years ago. 

Republicans cut state funding for transit programs in half in Milwaukee and Madison because they were receiving federal aid due to the pandemic. They did not cut transit programs in other cities that are receiving that funding. 

Republicans on the Joint Finance Committee initially planned to continue allowing 16- and 17-year-olds to waive the driving skills test, a policy the DMV piloted during the pandemic. On Tuesday night, Republicans in the Assembly reversed course and approved an amendment that deleted the creation of the waiver and the staff positions that would have developed it. 

Republicans provide $125 million to expand broadband, less than what Evers sought 

The Republican plan invests $125 million in expanding broadband access, about $75 million less than what Evers proposed. The plan uses borrowed money to provide grants approved by the Public Service Commission. 

Both Republicans and Democrats support expanding broadband access. Evers committed to using federal funding in addition to the state budget for grants. 

The tuition freeze at UW schools ends

The Joint Finance Committee, which developed their own spending proposal, voted to lift the tuition freeze at University of Wisconsin schools. UW schools will receive $8.25 million in funding, less than 5% of what Evers proposed.

The freeze on in-state tuition began in 2013 under former Republican Gov. Scott Walker and continued under Evers. Evers wanted more funding to go to the UW System instead of allowing the Board of Regents to raise tuition rates. UW System officials supported the move.

The budget also provides funding for some of the building projects on UW System campuses that Evers had recommended, including a new College of Letters and Science building at UW-Madison.

What's not in the budget

As they created their own proposal, the Republican-controlled budget-writing committee removed nearly 400 of Evers' proposed measures, including expanding Medicaid, legalizing marijuana and establishing standards for PFAS

Where the budget goes next

The plan now heads to the desk of Evers, where he can approve it, veto it or modify it with line-item vetoes. A full veto is unlikely as it would put the state at risk of losing $2.2 billion in federal aid for schools.

Evers previously did not rule out vetoing the budget entirely because he thought Republicans needed to invest more money in schools to meet the federal maintenance of effort, but they have since met that benchmark. 

Evers said Thursday he needs to see the budget documents before making decisions. 

"I’m looking forward to finally getting it and spending lots of time over the next few days going through it and seeing what we’re going to do with different parts of it that may be changed," Evers said.