Wisconsin state capital in Madison. PC: Fox 11 Online
MADISON, WI (WTAQ-WLUK) — Part of Wisconsin’s $4.6 billion budget surplus will be used for schools and tax cuts under a deal announced by Democratic Gov. Tony Evers and Republican legislative leaders Monday morning.
Under the deal, $600 million would go toward schools. Of that, $300 million would go to general school aids and $300 million would go toward special education reimbursement for districts increasing the reimbursement rate to 50%.
Another aspect of the deal provides more than $850 million in tax refunds. Each individual who filed a 2024 tax return and for which at least 90% of their income is Wisconsin income will be eligible for a $300 refund. Married couples filing jointly will be eligible for $600.
On top of that, the deal provides $350 million for property tax relief, including the $300 million in school aids and another $50 million for the Wisconsin Technical College System.
Finally, the deal eliminates the individual income tax on cash tips and overtime pay.
“Through the bipartisan investments we’re announcing today, the special education reimbursement rate will be 50 percent — double what it was when I first took office — in addition to approving more than $350 million in statewide property tax relief while eliminating income taxes on cash tips and overtime and helping working families afford rising costs from the grocery store to the gas pump. It’s a historic day for Wisconsin’s kids and our schools, and I’m jazzed we were able to get this done,” Evers said in a news release. “I want to thank Speaker Vos and Majority Leader LeMahieu for their leadership and willingness to work across the aisle over the last several months. This is a blockbuster deal for Wisconsin, and I’m grateful for the bipartisan partnership that got us to today.”
“Republicans have fought hard to control spending, and now we have a sizable budget surplus,” Assembly Speaker Robin Vos said in a news release. “We’re sending it back to help families with the pressure of increasing costs, reward hard work, and to continue investing in schools to help stabilize rising property taxes.”
“Our top priority in this process was to return the state’s surplus to those who created it: hardworking taxpayers across the state. This deal will provide immediate relief with $600 in surplus refund payments and provide permanent property and income tax relief for Wisconsin families,” said Senate Majority Leader Devin LeMahieu said in a news release.
The Legislature’s budget committee is expected to take up the proposed agreement on Tuesday, with the full Legislature expected to debate it on Wednesday. Evers says he anticipates signing the bill as soon as early next week.
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