While this budget notably includes many items that address immediate needs and priorities, in addition to imminent needs and necessary investments I raised above, I would be remiss if I did not note where it falls incomplete:
The Legislature’s budget left much to be desired when it comes to doing what is best for our kids by fully funding our public schools. Although I reached a compromise with legislative leaders to provide additional revenue limit authority and continuation of the state’s two-thirds funding commitment in this biennium, I would have liked to see the Legislature do better for our kids and our schools by providing more significant increases in many categorical aids to our schools. This missed opportunity is especially disappointing in light of the significant resources that the Legislature dedicated to the School Levy Tax Credit—funding that could have instead been directed to our schools to be spent in classrooms, delivering for our kids while also helping to keep the pressures of school funding off the property tax. Further, the Legislature did not invest in any of the proposed initiatives to help Wisconsin schools recruit and retain our best and brightest teachers and staff—a huge mistake in the midst of a school staffing shortage. Additionally, we have work to do to ensure state investments we make in our kids and our schools can keep up with inflation.
I am glad this budget will ensure our school districts have predictable, long-term revenue limit authority increases, in part, to help meet rising costs in the future. I hope that as we continue to work together going forward, the Legislature will listen more closely to our school leaders, who have been clear about the need for increases in order for Wisconsin schools to have the resources to deliver a high-quality education for each and every one of our kids.
We know the importance of doing what we can as elected officials to make smart, prudent investments, and in some cases, that includes building or expanding the facilities necessary to benefit our economy and further bolster our workforce. I, along with many others across our state, remain chagrined regarding the Legislature’s decision to reject important projects such as the University of Wisconsin-Madison’s new engineering building and the completion of the University of Wisconsin-La Crosse’s Prairie Springs Science Center, refusing to enumerate these projects in this biennial budget. This decision is, at best, short-sighted, at worst, purely political and petty. Any legislative discussions about “talent attraction” or being economically competitive ring hollow as long as the Legislature refuses to meaningfully invest in our Wisconsin Technical College and University of Wisconsin Systems, including our world-class research institution at UW-Madison, which are essential economic engines for our state.
The Legislature also rejected my budget recommendations to extend postpartum coverage for Medicaid-eligible mothers from 60 days to one year, which over 40 states have already implemented or are planning to implement in the near future. This extended timeline would have ensured that mothers and their newborns would retain health insurance during this critical time period. Additionally, I am also consistently befuddled and dismayed by the Legislature’s continued refusal to adopt Medicaid expansion even as Republican legislators across the country are supporting efforts to do so. In Wisconsin, this would have resulted in more than $1.6 billion in state savings due to additional federal funding that we could use to further invest in healthcare, education, our environment, or anywhere else. This is foolish.
As long as I am Governor, I will seek to expand BadgerCare because making sure every Wisconsinite has access to high-quality, affordable healthcare is the right thing to do.
Finally, I am disappointed with the Legislature’s chosen course of action related to taxes. I am proud that 86 percent of Wisconsin taxpayers have seen an income tax cut of 15 percent or more, with 2.4 million taxpayers getting relief, under tax cuts I have signed into law. I also promised cutting taxes would be part of our agenda in this budget to help working families afford rising costs, but that it had to be real, responsible, and targeted to working Wisconsinites who need the extra breathing room. The Republican plan sent to my desk is neither real, nor responsible, nor meaningfully targeted to the middle class.
First, the income tax proposal forwarded to me could result in the state having to repay billions of dollars it received under the American Rescue Plan Act (ARPA) of 2021—a risk I am unwilling to take. Second, instead of supporting my 10 percent middle-class tax cut to provide over $1.2 billion in targeted income tax relief over the biennium for working families, caregivers, parents, veterans with disabilities, and seniors, roughly half of this proposed tax plan would go to filers with incomes above $200,000. Under this proposal, 11 taxpayers who make over $75 million per year would receive an average cut of $1.8 million per year. Third, this approach is frankly fiscally irresponsible going forward and would put us in a position where we would almost certainly have to reduce funding and ongoing commitments to our schools, healthcare providers, local municipalities, and many other priorities in the next budget.
In recent months, we have worked together to address critical needs, reach bipartisan consensus and compromise, and accomplish important work for the people of our state. I am optimistic that our work together can continue—and it must. I urge members of the Legislature to continue the work on this budget throughout the remainder of this legislative session so that we can bolster our state’s workforce, maintain our economic momentum, and, most importantly, do the right thing for Wisconsin.
Respectfully Submitted,
TONY EVERS
Governor
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VETO MESSAGE
TABLE OF CONTENTS
A. INVESTING IN WHAT’S BEST FOR KIDS
1. Per Pupil Revenue Limit Adjustment
2. High Poverty Aid
3. Lakeland STAR Academy
4. Online Early Learning Pilot Sunset Date
5. Child Care Fund
6. REWARD Bonuses
B. STRENGTHENING OUR ECONOMY & FUTURE WORKFORCE
7. Individual Income Tax Rate Reduction
8. Withholding Table Update
9. Fund of Funds Program
10. Diversity, Equity, and Inclusion Positions
11. Washington County Branch Campus Transition
12. Visit Milwaukee Earmark
13. Talent Attraction and Retention Initiatives
14. Vibrant Spaces Grant Program
C. SUPPORTING HEALTHIER WISCONSINITES
15. Medicaid Coverage of Gender-Affirming Care
16. Housing Rehabilitation
17. Family Care Managed Care Organizations Report
18. Newborn Screening Program Card Fee
19. Study for a Master Plan for the Veterans Homes
20. Medical College of Wisconsin Psychiatry and Behavioral Health Residency Program Reporting Requirements
D. BUILDING STRONG, SAFE COMMUNITIES
21. Grants for Local Projects
22. Type 1 Juvenile Correctional Facility and the National Guard Challenge Academy
23. State Capitol Fiber and Cable Upgrades
24. Lac Courte Oreilles Decision – Aid Payments
25. Town of Sanborn Levy Limits
26. Annual Transfer of Local Government Fund Balance
27. Innovation Grants and Innovation Planning Grants Appropriations
28. Municipal Sales Tax Appropriation
29. Increases in Mileage Aid Payments
30. Dignitary Protection Unit
31. Freight Rail Preservation Program
32. Mississippi River Parkway Commission Administrative Support
33. Fee for Identification Stickers for Electric Vehicles
34. Opening Avenues to Reentry Success Program
35. Community Reentry Centers
36. Law Enforcement Overtime Grants
37. Consolidated Court Automation Program
E. PROTECTING & CONSERVING OUR NATURAL RESOURCES
38. Unobligated Stewardship Authority
39. Echo Lake Dam
40. Department of Natural Resources Position Reallocations
41. Pattison and Amnicon Falls State Parks Earmarks
42. Tribal Gaming Transfer
43. Steve Creek Dam
44. Lake Mallalieu Dredging Grant
45. Division Administrator Positions at the Department of Natural Resources
46. Board of Commissioners of Public Lands Deputy Director Position
F. ADDITIONAL KEY PRIORITIES
47. Tribal Grants Sunset
48. Legislative Human Resources Office
49. WisconsinEye
50. Promotion of the U.S.S. Wisconsin Columbia-Class Submarine
51. Restore an Appropriation for Agency Operations
A. INVESTING IN WHAT’S BEST FOR KIDS
1. Per Pupil Revenue Limit Adjustment
Sections 402, 403, 404, and 408
These sections provide the formula resulting in per pupil revenue limit adjustments of $325 in fiscal year 2023-24 and fiscal year 2024-25 for public school districts.
I am partially vetoing sections 402, 403, 404, and 408 to provide a $325 per pupil revenue limit adjustment in each year from 2023 through 2425. I object to the failure of the Legislature to address the long-term financial needs of school districts. This veto makes no changes to the per pupil revenue limit adjustment provided in the 2023-24 and 2024-25 school years and provides school districts with predictable long-term spending authority increases.
I have repeatedly recommended restoring the inflationary indexing of the per pupil revenue limit adjustment, which was in place prior to fiscal year 2009-10. Providing increased and continuing resources to school districts through the per pupil revenue limit adjustment, as recommended by the Legislature's 2019 Blue Ribbon Commission on School Funding, should be something all Wisconsinites can support.
I have often said that what is best for our kids is what is best for our state. As a result of this veto, I am requesting the Department of Public Instruction provide and account for this per pupil revenue limit adjustment authority of $179 plus $146 for a total of $325 in each year from 2023-24 until 2425.
2. High Poverty Aid
Sections 67, 394, 395, 396, 400, 401g, and 9334
These sections repeal and remove funding from the existing aid for the high poverty school districts appropriation under s. 20.255 (2) (bb). School districts are eligible for this aid if at least half of their enrollment meets the income criteria for a free and reduced-price lunch in the federal school lunch program. I am vetoing these sections to retain the appropriation that exists under current law in s. 20.255 (2) (bb) with zero dollars, and to retain the statutory references to high poverty aid. I object to eliminating this aid program without also providing sufficient increases in general equalization aid. The Legislature has chosen to provide greater investment in the school levy tax credit than general equalization aid in this budget. This is a less equitable funding model for school district costs and is in direct conflict with recommendations by the Legislature's 2019 Blue Ribbon Commission on School Funding. Through this veto, I am retaining the appropriation so that the state has a clear pathway to support high poverty school districts. 3. Lakeland STAR Academy
These sections provide $250,000 GPR in fiscal year 2023-24 and $500,000 GPR in fiscal year 2024-25 in a newly created annual appropriation for grants to the Lakeland STAR Academy. Specifically, they require the Department of Public Instruction to provide a grant to the Lakeland UHS School District for the Lakeland STAR Academy. No payments could be made from this appropriation after June 30, 2025.
I am partially vetoing section 51 [as it relates to s. 20.255 (2) (ag)] and vetoing the remaining sections in their entirety to eliminate the grant program for Lakeland STAR Academy. I object to providing state grants to a specific school when the Legislature has failed to provide the needed level of state dollars in a number of critical programs that serve schools statewide, such as special education, school nutrition, or mental health categorical aid programs. There are hundreds of charter schools authorized by public school districts, and it is unfair and inequitable to single only one school out for a state grant. As I have said before, every kid in Wisconsin should be able to get a great education in a public school regardless of what district they live in, and state funding decisions should not pick winners and losers among our kids. 4. Online Early Learning Pilot Sunset Date
