Tony Evers proposes rollback of Act 10 in budget that boosts school spending by $1.6 billion and raises $1 billion in taxes
MADISON – Gov. Tony Evers proposed a $91 billion two-year spending plan Tuesday that seeks to stabilize Wisconsin's economy as it emerges from the coronavirus pandemic and sets up a battle with Republican lawmakers by trying to roll back Act 10's collective bargaining limits, legalize marijuana, increase the minimum wage and raise $1 billion in taxes.
Evers — a former public school educator and state schools superintendent — also proposed a $1.6 billion boost in funding for public and private schools and the largest increase in funding for University of Wisconsin System campuses in the last two decades.
The state budget proposal is the Democratic governor's chance to promote his agenda before he decides whether to run for a second term next year. It is packed with measures that GOP lawmakers promised to block, including expanding health care programs under Obamacare and repealing the state's right-to-work law.
But Evers’ plan also includes ideas Republican lawmakers have called for, like funding the overhaul of an outdated and sluggish unemployment insurance system, keeping in-state tuition frozen for University of Wisconsin students and expanding Interstate 94 in Milwaukee.
The governor's plan eyes a pandemic-weary Wisconsin, in part by providing small businesses affected by COVID-19 with $200 million in aid.
"As you’re watching tonight filled with a year’s worth of worry, I know you’re also wondering whether we will claw out of this crisis, where we can go from here, how we get back on track, and what’s next," Evers said during a primetime, pre-taped budget address. "Well, tonight, Wisconsin, I want to tell you this: it’s going to be OK. We are going to be OK."
Evers wants to cut some taxes and raise others, resulting in a net increase of $1 billion in taxes over two years. He’s also calling for requiring background checks for all gun purchases and giving tax breaks to those who save for retirement or purchasing a first home.
Under his proposal, the state Department of Corrections would no longer operate state prisons for teen offenders — an effort that over the last six years has left inmates and correctional officers abused, some with lifelong trauma and permanent injuries.
"We are one of the only states in the nation that has not made this evidence-based change in ensuring that youth are treated as youth, and that needs to change now," Evers said.
The budget would create 309 new state jobs, bringing the state's workforce to 71,790. That could give GOP lawmakers some pause as they try to limit the size of the government.
Republicans will spend the coming months rewriting his plan. Evers can then tweak it using his partial veto powers.
Republican legislative leaders immediately rejected the full proposal because of provisions within it that would roll back policies they enacted under a Republican governor.
"He's not serious about governing, he's serious about politics," Assembly Speaker Robin Vos, R-Rochester, told reporters after the budget address.
Vos said the budget proposal was full of "poison pills" that Evers knew would be opposed by Republicans and would likely be ignored while writing the next state budget plan.
Senate Majority Leader Devin LeMahieu, R-Oostburg, expressed a similar view, writing on Twitter that Republicans would "set Evers’ bad budget aside."
Meanwhile, Evers concluded his speech by asking GOP lawmakers to end the seemingly permanent standoff between them.
"There’s no time for false promises of hope and prosperity with empty words that you know full well won’t match your actions," Evers said. "You can disagree with me if you want, but don’t punish the people we serve so you can settle a score no one but you is keeping."
Boost for K-12 funding, higher education
Evers is proposing more than $1.6 billion in new spending on public and private schools — the largest increase ever if adopted, his office said.
The spending plan would pour $613 million into the state's funding formula for schools, which will "help school districts with lower property wealth per student avoid having to choose between reducing services or incurring higher property tax levies," according to the governor's office.
His budget would also increase state-imposed limits on how much money school districts may receive through property taxes and state funding by about $200 per student in 2021 and 2022.
The limits were set in the mid-1990s based on how much districts generally spent per student up until that point.
As he did two years ago, Evers proposed freezing enrollment in private voucher schools, an idea that is opposed by Republicans.
To help inspire interest in state parks, Evers also recommended giving free annual park passes to the families of fourth-graders.
Evers also proposed a $190 million increase in the UW System’s budget over the next two years — nearly $100 million more than what was requested by former GOP Gov. Tommy Thompson, who now leads the UW System. The plan would give the UW System $20 million more unrestricted funding in each of the next two years.
"The budget shows that the Governor recognizes the value we can deliver to all Wisconsinites, as we have during the COVID-19 pandemic," Thompson said in a statement.
In line with UW System’s request, the governor proposed putting $39 million over two years toward a program to cover tuition and fees for Wisconsin students at all UW schools if their families make less than $60,000 per year. The funding would go to all UW schools except UW-Madison, which already has Bucky's Tuition Promise.
Evers joined Thompson in not calling for an end to the UW System’s tuition freeze, which many UW leaders have said is financially harming their institutions, but did propose allocating $50.4 million in taxpayer funding over next two years to offset the tuition revenue the campuses would miss out on because of the freeze.
Evers also recommended increasing the Wisconsin Technical College System’s funding by $18 million in each of the next two years.
Need-based financial aid offered to students at the UW System, the technical colleges, tribal colleges and state private colleges through the Wisconsin Grant program would increase by about $34 million over the next two years under the governor’s proposal.
Repealing Act 10
In one of his boldest moves, Evers called for throwing out much of Act 10, the 2011 law that all but eliminated collective bargaining for most public workers. The idea is sure to be rejected by Republicans, who have been preparing to celebrate the 10-year anniversary of Act 10’s passage next month.
Act 10 required public workers to pay more for their benefits, and that part of the law would remain in effect. But under Evers' plan many of those workers would regain the ability to engage in labor negotiations, giving them a chance to try to reclaim reductions in their take-home pay.
In a similar effort, Evers is seeking to repeal the state’s right-to-work law, which prevents private-sector labor agreements that require workers to pay union fees. Republicans rejected that idea when Evers proposed it in his last budget.
Evers is pushing for raising the minimum wage of $7.25 an hour to $8.60 as soon as the budget is signed. It would rise to $10.15 by 2024 and automatically increase at the rate of inflation every year after that. Evers wants a task force to study how to raise the minimum wage to $15.
Tax hikes and tax cuts
Evers’ plan would raise taxes on businesses and the wealthy while providing tax breaks to the lower and middle classes.
Evers would scale back a law that allows manufacturers to avoid having to pay state income taxes. He would keep the tax break in place for small operations, but not larger ones.
His budget would also increase taxes on capital gains for individuals earning $400,000 a year or more.
Republicans rejected similar tax increases on manufacturers and capital gains two years ago and are likely to do the same this time.
On the other side of the ledger, Evers wants to expand the earned income tax credit, which helps low-income workers. Those who qualify for it who don’t have a tax liability receive cash payments from the state.
Evers also wants to increase a tax credit for homeowners that helps many senior citizens on fixed incomes. And he is proposing providing $10 million in additional tax relief to parents to help cover child care costs.
He would create a system allowing people to set up tax-advantaged accounts to save for retirement and purchasing a home for the first time.
Overhaul juvenile justice system — again
The Democratic governor also is seeking to create a new juvenile justice model that would eliminate the classification of serious juvenile offender — a label used by courts for teens who commit the most dangerous and troubling offenses — and create small, regional facilities operated by state or county officials.
Under the plan, the state's long-troubled youth prison north of Wausau would eventually be shuttered. Lincoln Hills School for Boys and Copper Hills School for Girls in Irma have been the subject of costly lawsuits and investigations over their treatment of teen offenders and an explosive atmosphere, which has left both staff and inmates unsafe.
Lawmakers in 2018 passed a law to close the campus by this year but Republicans who control the finance committee have since decided not to fund the plan, leaving it to languish.
"The governor remains committed to closing Lincoln Hills and Copper Lake and is proposing a practical way forward to accomplish that goal by creating smaller, community-based facilities in the face of legislative deferral," according to an analysis of the budget proposal by the governor's staff.
Evers also would raise the age for charging someone as an adult from 17 to 18 — an idea Republican lawmakers rejected two years ago.
For adult offenders, Evers is recommending expanding early-release programs for inmates who participate in drug treatment or get job training.
Millions proposed to improve water quality
Evers’ budget would provide millions of dollars to deal with substances known as PFAS that are poisoning drinking water in several communities across the state.
Nearly $1.7 million would fund 11 new positions at the Department of Natural Resources to deal with the “forever chemicals,” as well as money for statewide monitoring and testing for the chemicals.
The budget also would set forth a goal of establishing and enforcing environmental standards for PFAS. Standards have been recommended by the DNR and some lawmakers but lobbyists representing manufacturers have persuaded Republican lawmakers to block the measures.
The budget would provide $70 million a year for the next 10 years for the Knowles-Nelson Stewardship Program, which provides funds to protect lands through acquisition of properties, purchase of easements, development of recreational facilities and restoration of wildlife habitat.
$40 million for I-94
Evers also recommended spending $40 million to begin rebuilding I-94 between the Marquette and Zoo interchanges in Milwaukee. The long-delayed project has been championed by area businesses but criticized by environmentalists and those who say the state spends too much on highways.
Evers is not recommending raising the gas tax or vehicle fees.
Upgrade the state's unemployment system
Evers also wants to spend $79.5 million to replace the state’s 1970s-era computer system for processing unemployment claims, which has contributed to months-long delays to getting benefits to some people during the pandemic.
He is proposing to increase the maximum weekly state unemployment benefit from $370 to $409 starting next year. He also wants to allow people to claim benefits as soon as they lose their jobs, instead of having to wait a week.
Gun control
With his budget Evers is seeking to adopt new gun policies that polling shows are popular but that Republican lawmakers have already rejected.
One would require background checks for all gun purchases. Another would create a “red flag” law that would allow guns to be temporarily taken away from those suspected of being a threat to themselves or others.
Redistricting and automatic voter registration
Evers also wants to require new legislative and congressional boundaries to be drawn by a neutral panel instead of lawmakers. The lines must be redrawn to account for population changes and where they go can benefit one political party over the other.
Evers' budget would change state law to allow automatic voter registration, with eligible voters being added to the rolls as soon as they turn 18 or move to the state.
Laura Schulte and Devi Shastri of the Milwaukee Journal Sentinel contributed to this report.