Evers Pairs Health Care, Education Spending With Tax Relief In Budget Plan

Gov. Tony Evers rolled out his budget proposals before the Legislature on Tuesday night, touting plans that mixed tax relief with spending increases to expand access to education, health care and other services.

Speaking to state lawmakers gathered in the Assembly chamber, Evers talked through his proposals. His remarks were greeted with frequent cheers and applause from the governor’s fellow Democrats and polite silence from the Republican majority in both houses of the Legislature. The speech, a followup to last month’s State of the State address, outlines the governor’s spending proposals for the biennium, which includes the two-year budget cycle for 2025 through 2027. 

Evers said his proposals aim to benefit working families chiefly and would seek to lower the costs on child care and medication and include investments in public education. At the same time, he said his ideas would provide nearly $2 billion in relief to taxpayers, including a proposal to eliminate income taxes on tips and forestall increases in local property taxes.

“Wisconsinites need a leg up to be able to finally get ahead — on utility bills, on child care costs, on groceries, medication, and doctor visits, and everything in between. And I’ve got a plan to do just that,” Evers said.

He said he wants to boost funding for the Universities of Wisconsin system; thwart “price gouging” on prescription drugs; to support efforts to battle back against PFAS and lead contamination throughout the state; and bolster infrastructure plans to restore the state’s roadways, develop affordable housing and high-speed internet access.

The governor pushed for greater investment in child care, which he said would aid families, but didn’t delve into specifics during his remarks.

Health Care Concerns Dominate Proposals

In the realm of health care, Evers proposed an expansion to BadgerCare; boosting new hospital investments; banning pre-approval for in-patient mental health services; and extending postpartum coverage for pregnant women on BadgerCare. He also suggested the state government begin auditing insurance companies for denying health care claims and create a state office to assist residents whose health insurance claims are denied.

He also championed a plan to create a Prescription Drug Affordability Board that he said would lower costs for prescription drugs and insulin and fight back against “price gouging” by capping certain copays and setting price ceilings for medication.

Evers Proposes Spending Increases For Agriculture, Environmental Cleanup Efforts

Evers said that with ongoing concerns about price increases brought on by the Trump administration tariffs targeting trading partners like Canada and Mexico, he wants to safeguard and support the state’s agriculture sector. The governor claimed the state “is on its way” to becoming one of the top 10 states for agricultural exports.

“We can’t afford to lose our momentum because of tariff wars in Washington,” he said.

He is proposing the creation of a new agriculture economist position to help Wisconsin farmers “navigate market disruptions and volatility caused by tariffs” and doubling the state’s investments in the Wisconsin Initiative for Ag Exports to boost exports of dairy, meat and crops and facilitate expansion into new markets. He said $50 million in additional support for infrastructure improvements to rural roads will also aid the state’s agricultural industry.

He proposed a $300 million investment to remove lead from service lines, water fountains, schools, homes and child care centers and $145 million to reduce PFAS contamination in the state’s groundwater. 

“Every Wisconsinite should have access to clean and safe drinking water no matter where they live,” he said.

Education Tops Evers’ Priorities

He also rang alarm bells about the challenges facing several campuses of the Universities of Wisconsin. To aid the schools, he is proposing an increase in funding for the system.

“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,” he said.

Evers also proposed plans to improve Wisconsin students’ reading scores. The scores have become an issue the governor’s Republican opponents have raised concerns about. He said Tuesday that support is needed.

“If the state isn’t committed to meeting our kids’ basic needs, then we can’t have serious conversations about improving outcomes,” he said. “It’s that simple.”

As part of his “Year of the Kid” initiative, Evers said he would ask the Legislature to back $80 million to invest in literacy coaches, tutoring and other resources to improve reading scores.

Governor Proposes Measures To Reduce, Stem Taxes

While the governor’s budget plan includes new spending measures, it also includes several measures to slash or hold the line on taxes.

He proposed a new arrangement where the state would give a direct payment to local governments if they agree not to raise local property taxes. In addition, tax relief would also come – based on mortgage or rent payments – by expansion of the Homestead Tax Credit and a new Property Tax and Rent Rebate. He said it would provide almost $150 million in tax relief and help about 165,000 Wisconsinites.

“Working to prevent property tax increases is a key part of my plan to lower costs for working families. But we can do more to reduce everyday, out-of-pocket costs for folks across our state,” he said.

He also proposed eliminating the sales tax on “several everyday expenses” and to reduce income taxes for “middle-class Wisconsinites, including homeowners, renters, veterans and seniors.” This would include almost doubling the state’s personal income tax exemption.

Taking a page from President Donald Trump’s recent campaign, Evers also proposed to stop income taxes on cash tips for service workers.

The governor’s plan is expected to face stiff challenges from Republicans, who continue to control both chambers of the Legislature. 

Stay tuned to Civic Media for continuing coverage.