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
These sections modify the repeal of the online early learning program; grant appropriation under s. 20.255 (3) (df) from July 1, 2023, to July 1, 2027, and make modifications for the service provider contract to continue until the new sunset date. I am partially vetoing section 51 [as it relates to s. 20.255 (3) (df)] and vetoing the remaining sections in their entirety because I object to extending the existing sunset date on this program before the compiled annual reports regarding the program are submitted to the Legislature and made public. The program, which aims to provide prekindergarten online instruction in six school districts, has seen lower than expected participation and had less than 20 percent of children complete the final assessment in the only year in which that data is available. If the participating school districts find sufficient value from services provided by the contracted program administrator, they may utilize their significantly increased revenue limit authority to support such services in the future. 5. Child Care Fund
These sections create a continuing appropriation for the Wisconsin Economic Development Corporation to create a revolving loan fund for child care providers. Separately, $15,000,000 GPR was placed in the Joint Committee on Finance's supplemental appropriation for this purpose.
I am partially vetoing these sections to remove references to revolving loans because I object to limiting the Wisconsin Economic Development Corporation’s flexibility in disbursing these funds to child care providers given the Legislature’s refusal to make substantial investments to bolster our state’s child care industry and help keep child care providers open to support our state’s workforce. By partially vetoing these sections to remove references to revolving loans, any funding made available under this appropriation could be distributed as grants to child care providers instead of loans.
