FINGER-POINTING, THE NEARLY $88
BILLION TWO-YEAR STATE BUDGET IS
NOW IN THE HANDS OF GOVERNOR
EVERS BECAUSE THE LEGISLATURE
PASS THEPASSED THE SPENDING PLAN THIS
WEEK AND NOW THE GOVERNOR EVERS
SCOURS THE DOCUMENT.
REPUBLICAN BUDGET WRITERS
INCLUDED MORE THAN $3 BILLION IN
TAX CUTS, WHILE NICKING ITEMS
LIKE EXPANDED MEDICAID AND MORE
MONEY FOR SCHOOLS.
ZAC SCHULTZ SHOWS US NOW FROM
THE CAPITOL WITH WHAT'S NEXT.
THANKS FOR BEING HERE.
>> MY PLEASURE.
>> UNLIKE PAST BUDGETS, SOME
ASSEMBLY DEMOCRATS VOTED FOR
THIS ONE.
WHAT WAS THAT ABOUT?
WAS IT ABOUT THE TAX CUTS?
>> I THINK YOU HAVE TO LOOK AT
THE GEOGRAPHY OF WHERE THOSE
DEMOCRATS ARE FROM.
THEY REPRESENT WESTERN AND
NORTHWESTERN WISCONSIN, WHERE AT
THE TOP OF THE TICKET, AT LEAST,
THE ELECTORATE HAS SHIFTED MORE
REPUBLICAN.
ONE OF THE MEMBERS IN THE
ASSEMBLY HAD JUST FLIPPED A
REPUBLICAN SUBURBAN DISTRICT IN
MILWAUKEE.
SO THEY HAVE TO COVER THEIR BASE
OF WHO THEY HAVE AT HOME.
THERE'S NOT A LOT OF NUANCE IN
VOTING FOR A BUDGET.
THIS BUDGET HAS LOTS OF THINGS
ANY LAWMAKERS LIKES OR DOESN'T
LIKE BUT YOU ONLY GET TO SAY YES
OR NO SO YOU HAVE TO BE PRETTY
CLEAR ON WHAT YOU WANT THE
ULTIMATE MESSAGE TO BE TO VOTERS
BACK HOME.
>> HOW DO REPUBLICANS REGARD
THIS SPENDING PLAN?
>> THEY LOVE IT.
THIS IS THE FIRST TIME THAT ALL
THE REPUBLICANS HAVE VOTED FOR A
BUDGET IN QUITE A WHILE.
IN PAST BUDGETS, YOU'VE SEEN
SOME OF THE CONSERVATIVE
REPUBLICANS SAY WE DON'T SUPPORT
IT BECAUSE IT DOESN'T GO FAR
ENOUGH.
REPUBLICANS BUILD THEIR BRAND
AROUND TAX CUTS AND THAT'S
WHAT'S IN THIS BUDGET.
>> AND DEMOCRATS AND BY
EXTENSION GOVERNOR EVERS?
>> THEY'RE FOCUSED MAINLY ON THE
EDUCATION SPENDING.
THEY'RE WORRIED THAT THEY'RE NOT
ENOUGH IN THERE, THAT THE
REPUBLICAN FOCUS WAS THE
REPUBLICAN REQUIREMENT THAT
ALLOWS THE FEDERAL RELIEF
DOLLARS TO COME IN, BUT NOT
PROVIDING ADDITIONAL STATE
SUPPORT AND HOW THAT MAY FALL
OUT IN THE ACTUAL SCHOOL
DISTRICT WHEN IT COMES TO
FUNDING THE OPERATIONS OF A
SCHOOL.
>> SO EVERS HAS THIS MIGHTY VETO
PEN.
WHAT CAN HE DO AND WHAT CAN'T HE
DO?
>> THERE HAVE BEEN RESTRICTIONS.
BACK IN THE THOMPSON AND DOYLE
ERA WE'VE USED AMENDMENTS TO
NARROW WHAT CAN BE STRUCK AND
WHAT CAN'T BE.
IT'S NOT AS BIG A PEN AS IT USED
TO BE.
HE CAN STILL REDUCE NUMBERS.
HE CAN STRIKE OUT SOME WORDS OR
LANGUAGE.
BUT REPUBLICANS HAVE BEEN
EXTREMELY CAREFUL TO MAKE SURE
THAT THEY DON'T PUT THE WORDS IN
THERE THAT HE COULD USE TO
STRIKE OUT.
THEY'VE TAKEN OUT REFERENCES TO
MAY NOT EXCEED JUST IN CASE
EVERS STRIKES OUT THE "NOT" AND
SAYS MAY EXCEED.
IT'S A CAT AND HOUSE GAME WHEN
IT COMES TO HOW THE BUDGET IS
WRITTEN AND THEN HOW EVERS AND
HIS TEAM VIEW THE BUDGET, WHAT
THEY CAN DO WITH THE VETO PEN.
>> THERE WAS SOME DISCUSSION OF
THIS EARLIER, BUT IF HE VETOED
THE WHOLE THING, WISCONSIN WOULD
LOSE, I UNDERSTAND, THAT MORE
THAN $2 BILLION IN FEDERAL
SCHOOL FUNDING, RIGHT?
>> YEAH.
THERE REALLY IS NO OPTION RIGHT
NOW FOR THE GOVERNOR TO VETO THE
WHOLE DOCUMENT BECAUSE
REPUBLICANS HAVE SAID THEY WON'T
COME BACK.
THEY WON'T GIVE HIM ANOTHER
BUDGET TO WORK WITH.
THIS IS IT.
REALLY IT WOULD BE PINNED ON THE
GOVERNOR IF THE SCHOOLS DIDN'T
GET THE FEDERAL FUNDING AND
STILL DIDN'T HAVE MORE STATE
SUPPORT IN THE MIX.
THERE WERE DEMOCRATS WHO
SUPPORTED THIS ON THE FLOOR IN
BOTH CHAMBERS.
THAT SHOWED THAT THEY REALIZE
THAT THE GOVERNOR WAS GOING TO
HAVE TO MAKE HIS CHANGES THROUGH
PARTIAL VETO.
>> MEANWHILE WISCONSIN SAW A
$4.4 BILLION TAX WINDFALL.
WHEN IS THE LAST TIME THERE WAS
THIS MUCH TO WORK WITH?
>> YOU HAVE TO GO BACK A COUPLE
DECADES AGO.
IN THE THOMPSON ERA THEY SENT
OUT SURPLUS CHECKS.
THAT WAS THE DIFFERENCE BETWEEN
HOW WE'RE INSTRUCTING IT NOW AND
THEN.
BACK THEN THERE WAS A ONE-TIME
SURPLUS.
THESE TAX CUTS ARE PERMANENT.
SO THE PERSONAL PROPERTY TAX IS
GONE.
THESE TAX BRACKETS ARE LOWERED.
THOSE DON'T JUST COME BACK.
SO IF THIS MONEY CAME IN BECAUSE
OF INCREASED COVID SPENDING,
THOSE STIMULUS DOLLARS AND THE
INCREASED UNEMPLOYMENT BENEFITS
BEING SPENT AND SURGING THE
ECONOMY, THAT WON'T HAPPEN IN
THE NEXT BUDGET.
SO IT'S A BIG QUESTION OF WHAT
WILL THE BUDGET PICTURE LOOK
LIKE THEN.
>> WELL, ASIDE FROM KIND OF THE
PROCESS OF ALL OF THIS, WHICH,
YOU KNOW, PROBABLY MOST PEOPLE
DON'T CARE AS MUCH ABOUT, WHAT
STANDS OUT FOR HOW PEOPLE IN
WISCONSIN WILL BE IMPACTED BY A
TWO-YEAR STATE SPENDING PLAN?
>> WELL, THE MAIN THING IS IF
YOU'RE A MIDDLE INCOME OR
HIGHER, YOU'RE GOING TO SEE TAX
BENEFITS.
YOU'RE GOING TO ENJOY THOSE TAX
BENEFITS.
EVERYONE ELSE IT'S A QUESTION OF
HOW MUCH THEY ARE AND WHETHER IT
REALLY IMPACTS THEIR LIFE.
THE OTHER BIG FALLOUT IS GOING
TO BE IN PUBLIC SCHOOLS.
IF THAT FEDERAL MONEY ISN'T ABLE
TO REPLACE THE OPERATIONAL
SPENDING THEY DIDN'T GET FROM
THE STATE, WE'VE HEARD SCHOOLS
TALK ABOUT HAVING TO MAKE CUTS
OR POSSIBLY LAYOFFS, WHICH WOULD
SEEM INCONGRUOUS AT A TIME WITH
ALL THIS MONEY COMING IN.
THAT WILL DEFINITELY IMPACT THE
NEXT BUDGET AND ELECTION.
>> WELL, ZAC, THANK YOU VERY
MUCH