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On Thursday, July 8, Governor Evers signed the next biennial state budget. He did so after issuing 50 partial vetoes. The spending plan includes nearly $85 billion for state programs over the next two years. Here’s what happened and what didn’t happen in the budget debate, as well as what happens next for Wisconsin.
The Governor began planning this state budget back in 2020 when COVID-19 cases were surging. The bill was introduced on February 16, 2021, and even then, the economic outlook was much different. As Republicans opposed federal rescue legislation and continued litigating state efforts to mitigate COVID, it was the competent leadership of our Governor administering vaccine distribution paired with historic federal relief from President Biden that catapulted Wisconsin’s economic recovery forward. The decisions and leadership of the Evers and Biden Administrations resulted in an unprecedented $4.4 billion in projected additional revenue for our state over the next two years. We had a generational opportunity to provide necessary funding to critical programs and provide tax relief.
Whether increasing affordable housing, improving healthcare, protecting our environment, or reforming the criminal legal system, the Governor’s original proposed budget tackled challenges head on and the additional revenue made these priorities possible without raising taxes. In the Joint Finance Budget debates, there were many, many missed opportunities, but the area that fell short the most was public education.
Are They Cheating Our Children Out of Educational Opportunities?
Clouded by one-time, pandemic-related federal aid to schools, Republican legislators refused to provide the state resources our school districts need. Governor Evers proposed nearly $1.5 billion in new spending for schools. Democrats on the committee, including myself, supported this initiative. Republicans approved just $128 million, less than 10% of the Governor’s original proposal.
The federal resources our schools are receiving have limitations. First, the funding has guidelines for what schools can use it on, meaning it cannot be spent for any purpose the district chooses. Second, many districts have already spent large portions of what they will receive in order to safely provide in-person instruction. Finally, not every district received equal federal funding and some districts received a very small amount. In short, federal aid cannot replace our state’s commitment to fund schools.
Republicans will cite a much larger number for their education spending plan. Don’t let them get away with it. Only $128 million of new spending within the budget can actually be spent in the classroom. Way in the weeds of how school funding works is something called a “revenue limit.” These are spending limits set by the State Legislature and prescribe how much state aid a district may spend per student. The budget failed to increase revenue limits, meaning the big numbers in education spending you see Republicans trumpet won’t actually reach the classroom. This is property tax relief only, and while tax relief is important, so too is funding schools in a way that reaches our kids.
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The Governor faced a difficult decision with this budget. Spending cannot be increased with the Governor’s veto pen—it can only be reduced. If the Governor vetoed the entire budget, it is likely that Republican legislators would have walked away and not reconvened. No new budget could result in unforeseen consequences, like the loss of federal aid.
Through a creative and strategic use of his veto authority, the Governor has kept roughly $550 million in state tax revenue on the table. His vetoes to reserve this funding are a signal to the Legislature that more needs to be done, especially in education. The Legislature must now act to supplement the budget with these additional dollars. The target should be public education and the future of students in Wisconsin impacted by this pandemic depends upon it.
