Now that the dust has settled and the legislature has begun to dissect the Governor’s 2025-27 state budget, Republican legislators are ready to start over and craft their own budget. Before that, however, the majority leaders plan to introduce their own tax relief proposal using the state’s surplus. Assembly Majority Leader Tyler August has said Republicans could hold up adopting a new state budget if the GOP tax cut plan isn’t first signed into law by Gov. Evers.

In his budget, Governor Evers proposes $2 billion in tax relief, including property tax reductions and an energy sales tax exemption, while also increasing taxes on top earners. Republican leaders argue his plan results in a net tax hike and instead advocate for broader tax cuts, potentially including retirement income exemptions. Finding consensus on tax cuts will require middle ground between both sides—though a clear path forward has yet to emerge.

Another area of common interest is closing the state’s prison in Green Bay and building a new facility. However, the Governor’s plan is receiving criticism from the GOP. Evers proposes a $535.5 million plan to expand early release for certain non-violent offenders, invest in job training, and close Green Bay’s prison. His plan also includes closing the troubled Lincoln Hills and Cooper Lake juvenile correctional facilities in northern Wisconsin and replacing them with a new facility near Madison at the site of an existing minimum-security prison. Under the proposal, the Lincoln Hills campus would be converted into a medium-security adult prison. While Republicans acknowledge overcrowding is an issue, they oppose expanding early release and favor alternative reforms. The Speaker criticized the Governor for not working with legislative Republicans on his corrections package.

The Joint Finance Committee’s typical budget timeline has been slightly delayed, with plans to hold public hearings around the state in April instead of March. In addition to ongoing debate, policymakers are monitoring federal actions and their potential impact on the state budget. With many moving parts and ongoing disagreements, it will be a long few months before the state’s budget is finalized and takes effect on July 1.