2021-2023 State Budget Overview

As in previous sessions, Republicans on the Joint Committee on Finance (JFC) took tough steps to ensure our state remains moving forward, investing responsibly in our infrastructure, while prioritizing our future.

When our state entered the biennial budget process this session, I will be the first to admit that I was skeptical at best. However, the Republican majority in the Legislature was proud to announce that we are delivering on our promises.

Below is an overview of budget actions taken by the committee. The 2021-2023 state budget will be taken up by the full Senate and Assembly in the coming weeks before heading to Governor Evers' desk for his signature or veto.

DEPARTMENT OF PUBLIC INSTRUCTION

Prior to the pandemic, state school aid was at historic levels thanks to Legislative Republicans. Legislative Republicans are investing in Wisconsin students in the following ways:

• Similar to all states, Wisconsin has received billions in Federal Aid for K-12 schools - nearly $2.5 Billion for Wisconsin alone. This was a major part of the discussion when determining the K-12 budget as this is a substantial amount of money.
• Guarantees that all districts will get a minimum of $781 per pupil if they taught in person instruction for at least 50% of the time during the 2020-21 school year.
• An additional $12 million for aids for mental health categorical aid which is a doubling of the program.
• $7 million for school-based mental health services collaboration grants which is a 54% increase and meets the Governor’s budget request.
• Increased Special Education Categorical Aids by $86 million to 30% of eligible costs.
  • The state will be funding special education at the highest dollar levels ever.
• Funding Increase for Wisconsin’s Technical College System.

DEPARTMENT OF TRANSPORTATION

The Governor’s budget proposal was status quo if not a step backwards. There was no long-term plan. In fact, his proposal would have put the Transportation Fund in worse condition.

• JFC Republicans are investing in Wisconsin’s Infrastructure including roads, vertical projects, and critical public safety systems.
• We will invest more than Governor Evers in local roads and the State Highway Rehabilitation Program.
• We will also borrow far less than the Governor to pay for road upgrades.
  • In fact, this is the lowest amount of new bonding for transportation in over 20 years.
• We’re making strong investments in state owned buildings, focusing on maintenance and repair and preparing the workforce of future generations.
• Wisconsin has two major pieces of critical emergency response and public safety infrastructure in need of updating and rebuilding and we will be investing in both (WISCOM & Next Generation 911).

DEPARTMENT OF WORKFORCE DEVELOPMENT

The Department of Workforce Development budget is an illustration of two different visions for Wisconsin. One is Governor Evers’ vision of growing government programs and dependency. The GOP plan focuses on getting people back to work. The Republican plan accomplishes the following:

• Invests in programs like Vocational Rehabilitation Services to help disabled individuals obtain, maintain, and improve employment opportunities as well as the Youth Apprenticeship Program where we quadrupled the Governor’s proposal to get more students prepared for the workforce.
• Expands access for veterans to the Hire Heroes program which helps veterans find employment.
• Provides funding for Farmer Mental Health Assistance to make sure those who keep us fed have the support they need in difficult times.

DEPARTMENT OF HEALTH SERVICES

• Wisconsin Republicans are continuing to invest in high-quality healthcare that benefits all Wisconsin residents including mothers, the elderly, those dealing with substance abuse, and children with developmental disabilities.
• Our budget also supports those who care for our most vulnerable and ensures we have a quality long-term care workforce. We go above and beyond the Governor’s recommendation and provide nearly $170 million GPR ($434M All Funds) for long-term care facilities and their staff.
• We invest in hospitals, long-term care facilities, and dental clinics to make sure Wisconsinites have access to affordable, high-quality healthcare when they need it.
• An additional $40 million GPR ($104M All Funds) over the biennium for Disproportionate Share Hospital payments - nearly 2/3's of hospitals in Wisconsin qualify.
• Nearly $18 million GPR ($46.2M All Funds) to expand dental access across Wisconsin.
  • This funding is critical to ensuring all residents have access to high-quality dental care when they need it.
• Unlike Governor Evers, we don’t need to expand welfare to fund priorities.
  • His budget took us backward, repealing work requirements, and drug screening and testing for able-bodied adults helping to keep people on government assistance.
  • Our budget retains those provisions and invests millions in programs aimed at improving healthcare access and quality.
• We are making targeted investments in child care: including Foster Care rates, local child support agencies and a significant investment in the Wisconsin Shares program.

MIDDLE CLASS TAX CUT

When there is a budget surplus, Republicans have consistently sent revenues back to the hard-working taxpayers of Wisconsin. Since 2011, Republicans have cut state and local taxes by over $13 billion. A typical family of four already saves over $500 each year from Republican income tax cuts that have been enacted over the last decade. Property tax relief passed by Republicans totals over $5 billion since 2014 and property taxes as a percentage of home value are lower now than they were in 2010. This budget, as crafted by JFC Republicans, builds on this foundation and provides further tax relief in the following ways:

• The total tax cut crafted by Republicans is over $3.4 billion. This plan is expected to comply with the federal maintenance of effort requirements.
• Under this plan, we will provide $650 million in property tax relief and achieve 2/3rds funding of schools. The state is estimated to provide 68% in the second year of the budget.
  • This is putting more money back into the pockets of businesses and homeowners across the state.
• We are investing $200 million to eliminate the personal property tax, helping businesses around the state who have to deal with this burdensome tax.
• Finally, with an additional $200 million transfer today, the rainy day fund will grow to over $2 billion. This is on top of the $350 million previously approved by the Joint Finance Committee.

CONCLUSION

When there is a budget surplus, Republicans have consistently sent revenues back to the hard-working taxpayers of Wisconsin. Since 2011, Republicans have cut state and local taxes by over $13 billion. A typical family of four already saves over $500 each year from Republican income tax cuts that have been enacted over the last decade. Property tax relief passed by Republicans totals over $5 billion since 2014 and property taxes as a percentage of home value are lower now than they were in 2010.

This is a tale of two budgets. With today’s work, Republicans will be sending money back to the taxpayers because we believe individuals, families, and businesses know better how to spend their hard-earned money than the government.

Governor Evers clearly doesn’t believe this. His proposed budget raised taxes by over $1 billion and increased overall spending by nearly 10%. His way out of the pandemic is that of a typical tax and spend Democrat - he doesn’t believe in the Wisconsin taxpayer. He believes in government bureaucracy.

Recent revenue re-estimates have added $4.4 billion in additional revenues over three years. Some of this will end up in the rainy day fund, but the majority will be sent back to families and businesses.

The total tax cut being approved by the Legislature is over $3.4 billion. This plan is expected to comply with the federal maintenance of effort requirements.

Under this plan, we will provide $650 million in property tax relief and achieve 2/3rds funding of schools. The state is estimated to provide 68% in the second year of the budget. This is putting more money back into the pockets of businesses and homeowners across the state.