As Governor Tony Evers puts the finishing touches on his next state budget proposal, projections show Wisconsin is expected to see a surplus of around $4.3 billion.
It sets the stage for a familiar battle, with the Democratic governor calling for investments in priorities like education and child care and leaders of the Republican-controlled state Legislature calling for tax cuts.
The $4.3 billion projection comes from an analysis by the nonpartisan Wisconsin Legislative Fiscal Bureau, which suggests state tax revenues will be nearly $895 million higher than expected throughout the next two-year budget cycle. The report credits that to a national economy that grew faster than expected in 2024 and modest increases in state sales tax revenue.
Governor Evers will give his two-year budget address on Tuesday, but he’s already given indications of how he’d like to spend some of the state’s excess money. During his State of the State Address on January 22, Evers vowed to put hundreds of millions of dollars toward student mental health services, child care and violence prevention.
After Evers’ speech, Wisconsin Assembly Speaker Robin Vos, R-Rochester, said it amounted to “a whole lot of things that are not going to happen in Wisconsin.”
The Republican-controlled Joint Finance Committee has all but scrapped Evers’ recent budget proposals and written their own. In a statement reacting to the state’s revenue projections, Sen. Howard Marklein, R-Spring Green, and Rep. Mark Born, R-Beaver Dam, who co-chair the panel, said they are encouraged but cautious about the future.
“Our cost-to-continue remains substantial and even with these expected revenue increases, we must remain vigilant when crafting a budget for Wisconsin,” their joint statement said.
They also said the multi-billion dollar surplus “remains here in the state coffers instead of the pockets of hard working Wisconsinites” because Evers has vetoed the bulk of GOP tax cut legislation.
“These estimates show that not only can we continue to fund our obligations and priorities, but that we can also give substantial tax relief to hard-working Wisconsinites,” they said.