The following program is a PBS Wisconsin original production.
>> Capital. >> Make his way into the
Assembly chambers. He will address the full legislature,
his cabinet, and the people of Wisconsin.
>> Good evening. I'm Zach Shultz from PBS Wisconsin.
>> And I'm Shawn Johnson from Wisconsin Public Radio. We're
about to hear from Governor Tony Evers about his state budget
plans for the upcoming biennium. >> At his state of the state
address a month ago, Governor Evers previewed some of his
budget priorities, including calling this the year of the kid
and prioritizing funding student mental health improvements, as
well as efforts to remove lead from drinking water and provide
free breakfast and lunch at public schools. It looks like
the governor has just been introduced, so let's watch him
as he comes in and greets members and makes his way to the
podium. >> We expect to hear the
governor cover a range of items big ticket items like a new $2
billion tax cut, some childcare costs, proposals. Some of these.
He's been kind of, I guess, parceling out over the last few
months. As you mentioned in his speech, unveiled a massive
corrections overhaul that was just came out over on Monday of
this week. So some pretty heavy policy in there. But but it's
worth noting that if he's going to run for reelection, this
would be his last budget. Before that election comes. And so
typically you can kind of get a sense of where governors are
coming from by the budget that they present. You know, at this
time of year. >> And when they have this
stage, they really only get the one night. So previewing it the
weekend before dropping a few nuggets, even this morning about
he's going to be previewing ending taxes on tips, kind of
stealing an idea from from Trump on the campaign trail.
Definitely campaign type items that have a lot of popular
support around the state. Expect to hear a lot more of that as we
go through this speech, especially.
only gets one night in a way that's more true now than it
ever was before. It used to be that a governor's budget could
would kind of be the foundation or the bulk of a final budget
that passes the legislature. I think you've seen this dynamic
with Governor Evers and the Republican controlled
legislature, where he presents his plan, and they proceed to
kind of do their own thing. They do agree on some, you know, big
picture stuff toward the end, but there's a lot of
disagreement starting in, you know, an hour or so.
>> The press conference has already been called.
>> Here's the governor. >> Thank you.
>> At this time, it is my honor to introduce the governor of the
great state of Wisconsin, the Honorable Tony Evers.
>> Thank you so much. Well, it's all good. Here we go, folks.
Good afternoon. Good evening. Wisconsinites, honorable Supreme
nation. Tribal leaders in the in the in the tribal nations.
Constitutional officers, members of the Wisconsin National Guard
and active and retired members of our armed forces. Cabinet
members, legislators, distinguished guests and
Wisconsinites joining us from wherever you are. Thank you for
being here with us tonight. And my wife, Kathy is up there in
the gallery tonight. Folks. Where are you? Kathy? Thank you.
Kathleen. Frances, you are my best friend and sounding board.
There's no one else I'd rather
shovel heaps of snow with or lose a game of pickleball to. I
love you so much, Kathy. >> Thank you. Thank you.
>> Folks. I'm Tony Evers and I'm excited to be here tonight to
introduce my fourth biannual budget as the 46th governor of
the great state of Wisconsin. Wisconsinites were not even 50
days into 2025, but my administration and I have been
hard at work doing the right thing for Wisconsin. I'm excited
tonight to be able to share some of the good work we've been
doing, including laying out our state's policy priorities for
the next two years. Our budget includes my comprehensive plan
to lower costs from child care to medication to help working
families, seniors and students. I'm also providing nearly $2
billion in tax relief, including eliminating income tax on tips.
And my plan invests in public education at every level while
holding the line on property taxes to make sure the average
homeowner will not see a property tax increase.
I'm announcing plans to stop price gouging on prescriptions
and crack down on insurance companies for denying
Wisconsinites medical bill claims. I also want to invest in
fighting PFAS and lead and getting contaminants out of our
out of our land service lines, bubblers, schools, homes and
child care centers for good. And we're going to keep fixing the
darn roads and infrastructure, building more affordable
housing, keeping our kids, families and communities safe,
and expanding high speed internet.
The budget I'm proposing balances our priorities of
investing in our kids and needs that have been long neglected,
while providing real and sustainable tax relief and
saving. Where we can. So let's get to work. Here in America's
Dairyland. Agriculture is a $116 billion industry. Everybody
knows farmers, farm families and producers have been the backbone
of our state for generations. So when we heard about President
Trump's 25% tariff tax, which could spark trade wars with
Wisconsinites largest export export partners hurt our economy
and farmers and drive up costs for gas and groceries. We got
right to work. Just as that 25% tax was set to go into effect, I
announced a new plan to help protect Wisconsin farmers and
our ag industry and bolster our supply chain. Under my
administration, Wisconsin is on its way to becoming a top ten
state for ag exports. We can't afford to lose our momentum
because of tariff, tariff wars in Washington. So my plan
creates a new ag economist position in state government
that will help farmers navigate market disruptions and
volatility caused by tariffs. I'm also proposing to double our
investments in the Wisconsin Initiative for AG exports to
help increase exports for our dairy, meat crops and help
farmers and producers expand into new markets. And we're
going to build upon our support for the meat and dairy
processors to help keep our supply chains strong.
>> Yeah.
>> We have to. We also have to help make sure farmers and
producers can get product to market. We just announced 55 new
projects across 36 counties to improve rural roads and
infrastructure through our agricultural Roads Improvement
program that we created last session. Tonight I'm announcing
we're going to invest $50 million to continue that
successful program to help ensure our farmers and our
producers and ag and forestry industries have reliable roads.
They can depend on. I also kicked off the new year
declaring, declaring 2025 the year of the kid across our
state. I want everything we do together this year to be focused
on doing what's best for our kids and the families who raise
them. So I'm asking the legislature to approve a budget
that does what's best for our kids at every stage. And every
way. And no matter where they live in our state. In 2025, the
year of the kid, I'm excited to be introducing the most pro kid
budget in state history.
An important part of doing what's best for kids is reducing
exposures to dangerous chemicals and getting harmful contaminants
out of the water. Every Wisconsinite should have or
should have access to clean and safe drinking water, no matter
where they live. Tonight, I'm introducing my plan to combat
water pollution and improve water quality across Wisconsin.
Lead exposure and poisoning is especially dangerous. There is
no safe level of lead exposure for kids. Even a small exposure
can affect a kid for life. Reducing learning capacity and
attention span and affecting academic achievement. So I
approved an emergency rule strengthening our lead standards
statewide and announced new investments to support kids and
families when they are exposed to lead.
>> Thank you. >> But we should be working to
prevent our kids from ever being exposed to lead in the first
place. In the last few weeks, Wisconsin has seen cases of lead
poisoning and kids who are exposed to dangerous levels of
lead at school. At school, folks that should never happen
anywhere in Wisconsin, period. We have to work together to fix
this. Tonight, I'm asking bipartisan support to invest
over $300 million to help get lead out of our service lines,
our bubblers, our schools, our homes and child care centers for
good. >> What?
>> And lead is just one contaminant that's affecting
kids, families and water across our state. Let's talk about PFAS
forever. Chemicals like PFAS are chemicals that have been used
for decades. And things like nonstick cookware, firefighting
foam, and even food packaging. PFAS exposure at certain levels
can mean developmental delays in kids, increased cholesterol
levels, reduced immunity, response to infections, and even
heightened risk of some cancers. Addressing PFAS and other
contaminants grows harder and more expensive each day of
delay. Republicans and Democrats must work together to finally
get something done on this issue. As part of my
comprehensive plan to improve water quality statewide, we're
working to strengthen Wisconsin's groundwater
standards for PFAS. And I'm asking the legislature to
support an investment of over $145 million to fight PFAS
contamination statewide and provide emergency resources like
bottled water to families and communities affected by water
contamination. Cleaning up our water is a key
part of our work to keep kids and families across Wisconsin
healthy and safe. But we should also invest in preserving our
natural resources, increasing outdoor recreation
opportunities, and expanding access to public lands for
hunting, trapping, and fishing. So let's reauthorize the NOLs
Nelson Stewardship Program for another decade, and let's do it
with bipartisan support. Let's deliver on the promise to our
kids and grandkids of a better state and world than what we
inherited. This budget is about doing
what's best for our kids. Yes, by addressing pressing
challenges facing our kids today. But we must also work to
do what's best for our kids futures, to. Every Wisconsin kid
should have access to a high quality public education from
early childhood to our K through 12 schools to our higher
education institutions, institutions. In 2024 2025, the
year of the kid. I'm urging the legislature to do what's best
for our kids by approving significant investments in
public education at every level in Wisconsin.
Let's start with higher education. Wisconsin has one of
the best technical college systems in the country. So our
budget invests in green jobs, our health care workforce, and
worker training for artificial intelligence. And I am proposing
nearly $60 million to support our technical colleges. And
they're good work. But I also want to talk about
our universities. This is a make or break budget for our UW
campuses. I know there's a lot of talk in Washington about
higher education. And look, folks, I can't speak to what's
happening on other campuses across other parts of our
country. But I visit just about every campus every year. So I've
seen what's happening on our UW campuses with my own two eyes,
two eyes. And we're doing things differently here. Politicians in
Washington don't know a darn thing about what's going on in
campuses across Wisconsin. They don't understand that our UW
system has been part of Wisconsin since we first became
a state. It's enshrined in our state constitution. They don't
know how important our UW system has been to our state's success,
or how important it is for our future.
>> So. >> At UW Eau Claire, they're
working to improve health care outcomes and lower health care
costs in rural areas. UW Platteville is helping address
rural health, health care shortages by training a new
generation of physician assistants. UW Milwaukee and UW
Whitewater are among the top campuses in the country for
supporting students who are service members or veterans
through a workforce centered program. UW Parkside has
increased graduation rates by about 20%. UW Stevens Point is
training more than 1200 future educators who are supporting
classrooms in over 200 different school districts across
Wisconsin. UW lacrosse is partnering with local businesses
to make sure skills, the skills they're teaching, meet local
employer needs. And I can go on and I will. UW UW Oshkosh
supported over 500 Wisconsin small businesses that needed
help with digital marketing, marketing support efforts. UW
green Bay is working with school districts to give high school
students the opportunity to earn an associate's degree. UW
Superior Small Business Business Small Business Development
Center is helping entrepreneurs start or expand their businesses
across eight northern counties. UW River falls is expanding
hands on learning activities to support our dairy industry right
here in America's Dairyland. UW Madison is leading national
efforts to study Alzheimer's to help improve treatment and find
a cure for the more than 110,000 Wisconsinites who live with that
cruel disease every day. UW Stout's manufacturing Outreach
Center has worked on more than 470 projects in Wisconsin, with
Wisconsin manufacturers across 33 of our 72 counties. Folks,
this is a story of what's happening on UW campuses each
and every day. UW is helping improve our daily lives here in
Wisconsin and the world over, and our ability to compete and
be successful, to have a strong economy and workforce, to retain
our homegrown talent, to solve problems in our smallest towns,
to our largest cities, and make life better for everyone who
calls our state home, depends on our UW system. Period.
This is just water, folks. Today, after years of attacks
and disinvestment, UW is facing
campus closures and program cuts. Students are facing
tuition increases and faculty and staff are facing layoffs.
And with new federal efforts to cut higher education funding,
things for UW could go could get a whole lot worse. So tonight,
I'm keeping the promise I made to the people of Wisconsin, and
I'm asking the legislature to approve the largest two year
increase for our UW system in state history. We have to get
this done, folks. >> Yes. Thank you.
>> It's up to us, each of us together, to invest in our UW
system, to defend it and to protect its promise for future
generations. Let me be clear to the elected officials in this
building whose public education at UW helped get you to where
you are today. You share in that important responsibility. Don't
tell our kids. They don't deserve to have the same
opportunity you did. Doing what's best for our kids
will always be what's best for our state. Investing in our kids
will pay dividends for their futures and ours too. It's why
my pro kid budget makes significant investments in
public education at every level, including our K through 12
schools. The cost of shortchanging our
kids is expensive. We cannot afford to fail them. We have a
responsibility to improve outcomes for our kids, both
within our schools and beyond them. You know, I've talked a
lot about the work we must do to improve student outcomes in
class and how we're finally getting and get finally help
shorten the odds. And we have to begin with the basics. I know
some legislators have tried to use student outcomes to argue
against investing in our kids and our schools. Folks, if you
believe that you got it backwards. The outcomes we are
seeing are exactly why we must do more, to do what's best for
our kids. >> The.
>> Legislature should approve my plan to make sure every kid can
get healthy meals in schools at no cost, regardless of whether
their family can afford it. Why? Because our kids will perform
better in our classrooms when we do. Legislators should approve
my plan to make sure kids can access comprehensive mental
health services, no matter where they go to school. Why is that?
Because our kids will perform better in our classrooms when we
do. The legislature should approve my plan to help make
sure kids have access to clean drinking water, no matter where
they live. Why? Because our kids will perform better in our
classrooms when we do. If the state isn't committed to meeting
some basic needs, then we can't have serious conversations about
improving outcomes. It's that simple.
If our kids are fed, healthy and feel safe, they'll perform
better in class. So we have to get back to the basics in this
budget. Reading is fundamental. There are a lot of discussions
right now about our kids reading scores, how we measure student
outcomes and how we improve them regardless of how they're
measured. These discussions are important, but this legislature
and I approve $50 million in the last budget that could be
improving. Our kids reading and literacy. If it wasn't still
sitting in Madison today, nearly two years later. So we can have
those discussions. But let's start by releasing millions of
dollars. We all agreed would improve reading statewide.
>> And. >> We're going to have to work
even harder to reverse these trends and make up for lost
time. It's one of those reasons that in 2025, the year of the
kid, I'll be asking the legislature to approve $80
million to invest in literacy, coaches, tutoring and other key
supports to help improve reading scores statewide.
Doing the right Thing for Wisconsin begins by doing what's
best for our kids. So my probe, my pro kid budget makes the
largest investment in Wisconsin. Kids in any budget by any
governor in state history. During my first term, I fought
to secure the first special education aid increase in over a
decade and the largest increase in funding for special education
ever in state history. Tonight, I'm proposing the highest ever
amount of state education aid funding, and we're going to
guarantee the state reimburses special education costs at 60%
to ensure every kid gets a public education.
>> They deserve. >> But folks, here's the truth.
Our current system isn't working. Take the Mauston School
District, for example. The fate of their school district is on
the ballot today. And kids, parents and educators will be
holding their breath tonight to see if their schools will be
saved. That's the reality. We come all too often in 2024. We
saw a historic number of school referendums on the ballot, and
169 of those referendum passed. Nearly 400 referendums passed in
the last four years. So the good news is Wisconsinites have shown
this legislature time and time again. They support increasing
investments in our public schools. The bad news is,
Wisconsinites had to raise their own property taxes to prove it.
This system isn't sustainable. It creates winners and losers
haves and have nots. But referendums are not inevitable,
right? >> It's.
>> Just Wisconsinites wouldn't have to raise their own property
taxes to keep school lights on and doors open. If this
legislature invested in K through 12 education from the
get go in the budget I'm announcing tonight proves we can
both make the investments in our kids that we need to and hold
the line on preventing property taxes from going up.
All told, our projected budget will do what's best for our kids
by providing more than $3.15 billion, nearly all of it is
spendable revenue for schools across Wisconsin. And we're
going to make those investments while holding the line on
property taxes to ensure the average homeowner will not see a
property tax increase. >> Thank you.
>> My budget would create a new incentive for local governments
to freeze their local property taxes. If local governments
agree not to raise the local property taxes, they'll get a
direct payment from the state. This will ensure local partners
can still afford to pay for basic and unique local needs
alike. Without property taxes going up.
Working to prevent property tax increases is a key part of my
plan to lowering costs for working families. But we can do
more to reduce everyday out of pocket costs for folks across
the state. Where Wisconsinites are working than ever before.
But paychecks today aren't going nearly as far as they used to.
Really concerned about President Trump. Trump's 25% tariff tax
will not only hurt our families and our farmers, and industries
and our economy, but it will also cost cause prices to go up
on everything from gas to groceries. Some estimates
indicated this could raise costs on the average American by about
$1,200 a year. That will make it even harder for Wisconsin
Wisconsinites to make ends meet. So I'm asking Republicans and
Democrats to work together to pass my comprehensive plan to
lower everyday, out of pocket costs for working families.
And Wisconsinites need a leg up to be able to finally get ahead
on utility bills. On childcare costs. On groceries, medication
and doctor visits and every everything in between. And we've
got a plan to do just that. Here's how we get it done. Let's
save Wisconsinites money on their monthly utility bills. I'm
proposing to eliminate the sales tax on electricity and gas for
Wisconsin homes, which will save Wisconsinites about $100 million
in out of pocket costs each yea. >> No.
>> Wisconsinites also need a legislature to get serious about
lowering out-of-pocket costs for child care. This session. No
more excuses, folks. Putting two young kids in child care in
Wisconsin costs more than the average rent or mortgage in
2023. Child care costs consumed as much as a third of families.
Household incomes. Our workforce and economy can't afford more
parents leaving their jobs because they can't afford child
care. Let's invest in our child care providers so that they can
hire more staff, reduce wait lists, and lower the cost of
child care so that we can get working families, working
parents and families a little more breathing room in their
household budgets. That's a win win win for our kids, our
families, our workforce and our state.
>> You. >> My plan will provide nearly
$2 billion in tax relief through efforts to lower property taxes,
eliminate the sales tax on several everyday expenses, and
cut income taxes for middle class Wisconsinites, including
homeowners, renters, veterans and seniors.
>> You. >> Think that's all? Let's also
make sure Wisconsinites and keep more money in their pockets. I'm
proposing to nearly double Wisconsin's personal income tax
exemption. That means Wisconsinites will pay no income
taxes on the first $1,200 they earn. Period. And I want us to
work together to pass my proposal to support students and
workers in our service industries by letting them keep
the tips they earn tax free. Let's eliminate taxes on cash
tips. Thought I heard the president
talking about that too. My plan will also give Wisconsinites
more tax relief back based on the mortgage and rent they pay
by building on our building upon our homestead tax credit. My new
property tax and rent rebate will provide nearly $150 million
in tax relief for about 165,000 homeowners and renters across
our state. A key part of my plan to lower,
lower costs for working families, including, includes
making it easier for folks to get the health care they need
without breaking the bank. Health care should not be a
privilege afforded only to the healthy and wealthy. It's why I
am again proposing to expand BadgerCare, which would save
Wisconsin taxpayers nearly $2 billion over the next two years.
That's billion with a B, folks, and expand quality, affordable
health care coverage for about 100,000 Wisconsinites. And I'm
also I'm also providing new hospital investments to improve
access to health care across Wisconsin, including our rural
communities. >> Yes. Thank you.
>> As part of my comprehensive plan to lower costs for working
families, I'm also proposing sweeping plans to lower costs
for prescriptions and medication and crack down on price gouging
for. And health insurers. Let my less for X plan will lower costs
for lifesaving prescription drugs and insulin. We created we
will create a prescription drug affordability review board to
crack down on prescription price gouging. We'd cap the cost of
insulin co-pays at $35. We'd set price ceilings for prescription
medication, and we'd save Wisconsinites a projected $70
million over the next two years alone by eliminating the sales
tax on over-the-counter medication. Let's finally make
lowering everyday out of pocket costs for medication a
bipartisan priority. This session.
And here's something else we can do with bipartisan support in
the year of the kid. Let's finally do what's best for our
moms and babies. Let's extend. Let's extend postpartum coverage
for pregnant women on BadgerCare up to one year after giving
birth. Wisconsin and Arkansas are the only two states in
America that haven't done this. I mean, nothing against
Arkansas, but come on folks, proposes and every budget I've
introduced as governor, there's also a bipartisan bill to get it
done that almost 90 legislators support. One legislator should
not be able to single handedly obstruct a bill that's supported
by a supermajority. >> Of. A supermajority. Of.
>> Wisconsinite should be able to get the health care they need
when they need it. But I hear from folks all the time who feel
like they're getting ripped off by the health care industry. And
insurers. Folks can't get a straight answer on what's
covered by insurance and what's not. People can't get sicker.
People can get sicker, and health problems get worse
because it takes too long to get an appointment or be approved
for care. If it's ever approved at all. People try to get their
care paid for, but insurance companies refuse to cover it.
Families get a medical bill and see all sorts of charges they
don't know about, or even worse, suddenly collection agencies are
calling about unpaid medical bills they didn't even know they
hadn't paid. Wisconsinites aren't getting a fair shake when
it comes to healthcare, and I want to change that. So first
things first. I want to make Wisconsin the first state in
America to start auditing insurance companies over denying
health care claims. >> To.
>> If an insurance company is going to deny your health care
claim, they should have a darn good reason for it. It's
frustrating when your claim gets denied and it doesn't seem like
anyone can give you a good reason why. So here's what I
propose we do to fix that. Under my plan, if an insurance company
is denying Wisconsinite claim, too often, we're going to audit
them. Pretty simple. It's very. >> Simple.
>> And here's what else this plan would do. We'd create a new
office to help Wisconsinites with health insurance. Claims
are denied. For the first time in state's history. We'd have an
office in state government devoted to helping Wisconsinites
hold health insurers accountable and ensuring folks get the
health insurance cover they pay for. That's a big deal, folks.
>> Yeah. >> And another thing that gets
me wound up is how I start shaking my finger, is how health
insurance companies require health care professionals to get
permission before they get before they prescribe medication
or care that you need. Basically, that means health
insurance, not your doctors are deciding whether you're
prescribed treatment is medically necessary. Health
insurance companies try to use these so-called prior
authorizations to help their bottom line and cut costs.
They're breaking. They're banking on being able to avoid
covering the services and treatment you need. And
Wisconsinites, you pay the price. Folks have to wait to get
care until doctors get permission, or may end up
forgoing treatment altogether because of all the hassles with
insurance. That can cause health conditions to get even worse,
even dangerous, and even life threatening. So my plan would
create new standards to expand health care services, procedures
that insurance companies are required to cover. That means
more health care services and procedures will be covered by
insurance. Insurance automatically. No delays, no
hassles, no questions asked. Wisconsinites should know what
you're getting when you buy your health insurance plan. You
should know which services and treatments will need prior
authorization. So we want to require health insurance
companies to be transparent from the get go. They have to tell
you what's tell you right up front which services and
treatments will require prior approval so that you can find a
health plan that's right for yo. And this may be obvious, but
here's one thing we have to make sure of. No one should be in a
mental health crisis wondering whether insurance will cover an
inpatient stay to get help. So we're going to ban health
insurance companies from requiring pre-approval,
pre-approval for inpatient mental health services. So
Wisconsinites in crisis can be safe and get life saving care.
Wisconsinites, you should be able to get health care when and
where you need it. And you should be able to get it quickly
and close to home. Folks can't afford to travel hours away to
get basic services. And you shouldn't have to wait weeks and
months to get an appointment. So my plan is simple. Would enable
creating statewide standards for maximum wait times for
scheduling appointments. And I'm I'm proposing to require health
insurance companies to make sure the services they cover are
available within a minimum time and distance of where you live.
And even if folks can get care. Far too often, unpaid medical
bills are sent to collection agencies because Wisconsinite
can't afford to pay them. Other times, Wisconsinites might even
know about unpaid medical bills before they're sent to
collections or report to credit bureaus. This plan would require
health providers to give Wisconsinites notice of unpaid
medical bills, and we'd give Wisconsinites a six month grace
period banning healthcare, banning health care providers
from reporting, reporting unpaid medical debt to consumer
reporting agencies. During that time.
In this budget, we found ways to cut taxes and save where we
could while investing in key priorities and finding real
solutions to real problems. Wisconsinites are facing every
day. While we must, we must continue to stay within our
means. We have a duty to do what's best for our kids and
future generations. We must continue to do the right thing
for Wisconsin if we want to protect the future. We've worked
hard to build together Wisconsinites. I am so proud of
our work to deliver a budget that balances these important
obligations. And that's important. There's so
much happening in Washington, in Washington that's reckless and
partizan. And Partizan in Wisconsin. We must continue our
work to be reasonable and pragmatic. The need needless
chaos caused by the federal government in recent weeks has
already made preparing a state budget that much more difficult.
We prepared for the worst popular programs that kids,
families, schools, veterans, seniors and communities rely
upon every day being drastically cut. Resources and investments
that Wisconsin is counting on and budgeted for. Suddenly
stalled or gutted. Trade wars with Wisconsin's largest export
partners hurting our egg industries and our economy.
Costs for working families skyrocketing to the point they
can't even make ends meet. It's why, even though I proposed
historic investments in several areas statewide, it would not
have been wise or responsible to spend every last cent available
in this budget. We made difficult decisions and saved
and saved when we could, leaving a balance of about $500 million
in our state's checking account with irresponsible decisions. In
Washington every day, hurting people in Wisconsin, we will
need to have state resources readily available to respond to
basic and emergency situations alike. So as the legislature
deliberates my proposal, I urge you to seriously take seriously
the disastrous consequences federal decisions will have on
Wisconsinites and our state and plan accordingly.
>> Thank you. >> There is a lot of work to do,
folks, but I know we can get good things done for Wisconsin
in this budget. If everyone focuses on doing what's best for
our kids, delivering real solutions for real problems.
Wisconsinites face every day and doing the right thing. So let's
get to work, folks. Let's make it happen. Thank you. And on
Wisconsin. UW marching band. Take her.
>> The marching band. Governor Tony Evers concludes.
>> His biennial budget address,
talking about new funding initiatives for health care,
education. There'll be a lot to discuss and analyze in the weeks
and months ahead. >> Tonight, we're joined by
Jason Stein, president of the Wisconsin Policy Forum. Jason,
thanks for being here. >> My pleasure. Thanks for
having me. >> So the band has stopped
playing for a half second, but if we could talk over them. Any
surprises? From what the governor laid out in his speech?
>> I think what strikes me is just the breadth and depth of
the proposals. I mean, these are very significant in terms of the
level of spending, the extent of the tax cuts that he's
proposing, as well as some tax increases. You know, it's a
significant document. Many of these things won't pass, but
they would have a significant impact if they did.
>> Jason, talk us through like kind of the size of the budget
that we're talking about here, because we've heard for the
second budget in a row that we have this massive surplus, about
$4.5 billion, roughly. It sounds like a lot of money. What would
happen if all this became law? >> Well, the one thing that's
important to know is that over the current two year budget, we
would decrease the surplus by about $3 billion or the general
fund balance by about $3 billion, including about $350
million in this year. And so when you look at what the
governor is doing with K-12 education, higher education,
child care, you know, other proposals on the tax side, like
income tax cuts, sales tax cuts, property tax credits and aid to
local governments, you're really looking at something that would
be billions of dollars of drawdown of that general fund
surplus. And so you really and that's consistent with what he
talks about in leaving $500 million left.
>> So at the end of the speech, we heard the governor use the
phrase reasonable and pragmatic in describing his budget. But we
sat and watched the Republican response. There was no applause,
even for things that they had supported in the past. Do you
think there will be anyone on that side of the aisle that will
describe it as reasonable or pragmatic?
>> I mean, I think probably right now to reporters, they
are, you know, saying pretty negative things about the
budget. I mean, there may be some areas where they can
compromise. For example, the governor talked about increasing
the school levy credit, which essentially is state money that
buys down local property taxes by about $350 million. That's
something that Republicans have approved increases in that
credit in the past. They might reach a meeting of the minds on
that. Obviously the tax cut for tips for cash tips. That's
something the president has talked about at the federal
level. Possible you could have a meeting of the minds even if
economists wouldn't particularly like it. And then finally, is
the postpartum coverage for mothers that he talked about.
That's something that, you know, most states, red or blue have
done it around the country. And there is bipartisan legislation
to do that. So even though he's proposed in the past and it
hasn't happened this time, might be the charm on that one.
>> Jason, we don't know what the governor is going to do in 2026
if he's going to run for another term. But that prospect is out
there. Republicans who run the legislature know that. How could
that affect budget negotiations over the next several months?
>> I mean, obviously, there's going to be attention for
Republican legislators that they're not going to want to
deliver a win to a governor who might run for reelection. At the
same time, he's probably not going to make that decision
until the fall or early 2026. And so that's they're not going
to know that, and they're just going to have to make a
decision. I think there is some things that are going to put
pressure on both sides to reach a deal, including the fact that
in the previous budget, the governor's veto left this
increase in school revenue limits in place. If we don't get
a state budget passed with new state aid to school districts,
that would put upward pressure on property taxes, which is
something that neither party really wants to see happen.
>> All right. Jason Stein, the president of the Wisconsin
Policy Forum. Jason, thanks for joining us.
>> Hey. My pleasure. >> If you would like to see
tonight's speech, along with Jason Stein's insights, you can
watch it again by going to PBS Wisconsin. Org. It will be
posted there later this evening. We'll also have continuing
coverage of the state budget process this Friday night at 730
on here and now. >> Wisconsin Public Radio will
also continue to follow developments from the state
Capitol, both on the air and online at. I'm Shaun Johnson
with Wisconsin Public Radio. >> And I'm Zach Schultz with PBS
Wisconsin. This concludes Wisconsin Public Media's
coverage of the 2025 Wisconsin state budget address. Thanks for
joining us.