Wisconsin Assembly Minority Leader Greta Neubauer (D-Racine) said Thursday she’s confident legislative Democrats’ opposition to the property tax and school funding deal that fell apart in the Legislature late Wednesday night won’t hurt her chances at Democrats winning majority control of both chambers for the first time in more than 15 years. 

The deal, which was negotiated by Democratic Gov. Tony Evers, Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Devin LeMahieu (R-Oostburg), all of whom are not seeking re-election, was passed in the Assembly with some Democratic support but died in the Senate after three Republicans joined all 15 Democrats in voting against its passage. 

Under the deal, the state’s school district would have received a higher reimbursement rate for special education services, state aid to schools would have been increased in an effort to lower property taxes, individual taxpayers would have received a $300 tax rebate check and state taxes on tips and overtime would have been eliminated. 

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Democrats largely objected to the deal’s long-term financial effect, arguing it would have left the state with a massive structural deficit ahead of next year’s budget cycle. But since the deal’s announcement Monday morning, its potential effect on the state’s midterm election politics has been at the forefront. Legislative Democrats expressed frustration that Evers was handing a lifeline to the Assembly Republican caucus. Most, but not all, of the candidates in the Democratic primary for governor opposed the bill’s use of the state budget surplus — taking away the nearly $3 billion pile of money they were anticipating to have for their own legislative plans. U.S. Rep. Tom Tiffany, the presumptive GOP nominee for governor, opposed the deal and lobbied Republicans to vote against it. 

At an event hosted Thursday afternoon at the Madison Club by WisPolitics.com, Neubauer said that she believed passing the deal would have been irresponsible financially. 

“Our caucus, alongside our Democratic colleagues, and many people were concerned that the deal would have put us in a very difficult financial position,” she said, noting federal cuts by the Trump administration, the higher burden placed on states for covering the costs of Medicaid and the economic uncertainty facing the country because of the war in Iran. “We did not feel it was responsible to pass a proposal that would very likely put us in a deficit in the years ahead.” 

She added that the structure of the deal would not have been enough to stop the cycle of local school funding referendums that school districts across the state have had to rely on in recent years to cover costs in the face of reduced state money. With the midterm elections so close, and accusations that the Democrats only opposed the bill because it might help Republicans in November, she said that passing bad policy to help vulnerable Assembly Republicans such as Reps. Howard Marklein (R-Spring Green) and Todd Novak (R-Dodgeville) would have been irresponsible. 

She also said she believes voters understand that the problems facing the state are more attributable to 16 years of Republican legislative control than one vote. 

“Frankly I think their incumbents are in more trouble than our incumbents,” she said. 

Neubauer cited recent polling from A Better Wisconsin Together that found Democrats ahead in five of the most competitive Assembly districts, saying she is “optimistic” about the chances at Democratic trifecta control of state government in January. 

With this optimism, she said she’s looking at how to learn from the examples of states such as Michigan and Minnesota for how to manage newly won Democratic control. She said she’s working with Senate Majority Leader Dianne Hesselbein and has had conversations with the Democrats running for governor to start planning how to prioritize. 

She said that lowering costs for regular people while easing the burdens facing schools and local governments would be among the first items on the agenda. Beyond those, she said that with majority control, Democrats would likely revive the Knowles-Nelson Stewardship Grant program after its expiration this summer, regulate the growth of data centers and enact “pro-democracy” measures such as a bill to begin processing absentee ballots on the Monday before an election. 

To pay for these plans, she said that Democrats are looking at revenue generating actions such as legalizing recreational and medicinal cannabis, increasing the corporate tax rate and raising income taxes on millionaires and billionaires. 

On the governor’s race, she said she believes it’s healthy to have a vibrant primary race, even if it’s frustrating when one side has a crowded primary while the other has consolidated around one candidate. 

She said she’s spoken with all the candidates and it’s important to think about who can win in November, but it was unlikely she would endorse a candidate before the primary election in August. She added that Democratic primary voters in Wisconsin have been kept from having a say in their general election candidates in recent years. 

“I do think that we have a really good field,” she said. “I’m very confident that voters are going to elect somebody to go up against Tom Tiffany and win in November.” 

The property tax and school funding package negotiated between Democratic Gov. Tony Evers, Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Devin LeMahieu (R-Oostburg) passed the Assembly Wednesday night in a bipartisan vote, but died in the Senate after three Republicans joined all the Democrats in voting against the measure.

After the failed Senate vote, Evers criticized the legislators, and U.S. Rep. Tom Tiffany, the presumptive Republican gubernatorial nominee, for killing his deal.

“Wisconsin’s kids and schools aren’t going to get the investments they desperately need this year because Tom Tiffany and a few Republican and Democratic lawmakers chose to blow up a bipartisan plan to invest in our K-12 schools, lower property taxes, and help working families afford rising costs, all because they’d rather do what’s best for the next election than what’s right for the people of our state,” Evers said. “So many Wisconsinites feel left behind, frustrated, and disillusioned by politics these days because they think a lot of politicians in the Capitol are only here to serve themselves. And, today, they’re right.”

But Senate Majority Leader Dianne Hesselbein (D-Middleton) said that if her caucus wins a majority in November, they will work to deliver relief to Wisconsinites with a better process.

“If Democrats are in the majority, I promise we’re going to steer a course to a Wisconsin in which our economy works for everybody, where schools are sufficiently funded and health care is affordable and accessible, and those decisions will be made out in the open,” she said. “And we will have robust discussions, and let’s be honest, arguments. What’s happening today is so reckless, so completely reckless. If we are in the majority, we will lead with compassion, strength, tolerance, collaboration and fiscal responsibility that brings security, not bankruptcy, to future generations.”

The late Wednesday night votes followed more than nine hours of deliberation. Although Democrats in both chambers had panned the bill, 10 Assembly Democrats voted yes when the roll call arrived, after an amendment by Republicans that included disaster relief funds for parts of the state damaged during last year’s August floods and expanded a property tax cut for disabled veterans. The final Assembly tally was 61-32.

Despite the amendment, however, the Senate, meeting more than six hours after it was initially scheduled to convene, voted 18-15 against the bill. Republican Sens. Rob Hutton, Steve Nass and Chris Kapenga joined the entire Senate Democratic caucus in opposition.

Assembly Republicans talk up deal

The  funding package announced this week by Evers, Vos and LeMahieu, all of whom are retiring this year, was held up for hours Wednesday afternoon while lawmakers worked to get enough votes in the Senate. 

During hours of debate in the Assembly Wednesday morning, Republicans were self-congratulatory about their bipartisan deal-making and appeared poised to pass the bill on a largely party line vote. But in the Senate, where Republicans hold a slimmer majority, Kapenga (R-Delafield) and Nass (R-Whitewater) signaled their opposition to the bill from the start, forcing the authors to try to persuade the two Republican holdouts or peel off Democrats.

Tiffany also opposed the bill and was in contact with state lawmakers about their votes this week.

Democratic lawmakers, frustrated that they were left out of the negotiating process while Evers made a deal that could give a lifeline to an Assembly Republican caucus — which polls show could be on the cusp of losing their majority  next year — criticized the deal-making process and complained that it was a “Band-Aid” solution for the structural problems facing the state’s schools and homeowners. 

“I know you’re all standing up and congratulating yourselves on giving more money to schools, and yes, that is good, but you don’t get a prize for boarding up a window that you broke in the first place,” Rep. Deb Andraca (D-Whitefish Bay) said. “This proposal is a turducken. A turkey that was put together by a bunch of lame ducks, by a Republican Legislature that is too chicken to confront the structural affordability and education issues facing this state.”

Republicans meanwhile repeatedly touted the bipartisan nature of the deal, the special education funding and property tax relief that they say will return the state’s budget surplus to the people. Several of the chamber’s most vulnerable Republicans, including Reps. Todd Novak (R-Dodgeville), Pat Snyder (R-Weston), Bob Donovan (R-Greenfield), Benjamin Franklin (R-De Pere) and Shannon Zimmerman (R-River Falls), were repeatedly given the microphone to tout their support for the bill. 

“It is about compromise. It is about balance,” Zimmerman said. “This is balanced government that we’re witnessing here today. I applaud Gov. Evers for working with us to advance this, and what you’re hearing is, ‘but it’s not great.’ It’s not great today. I’ll take good.”

Republicans also frequently said the bills would help Wisconsinites manage the economic strains currently facing the state — without noting that the administration of President Donald Trump, through its tariffs and war in Iran, are largely the cause of that financial pressure. 

“I think that sometimes some of the arguments that I heard from the other side, people need to remember, we are not congressmen. We are not U.S. senators,” Franklin said. “We are state representatives. And the focus should maintain on the state of Wisconsin what we’re doing here.”

The legislation would have added $85 million to reimburse local school districts for the cost of special education in the current school year and $230 million for the 2026-27 school year. A Legislative Fiscal Bureau memo estimated the additional funding would raise the state’s reimbursement rate this year to 42.7% and for 2026-27 to 50%, but added that the actual rate “could be higher or lower,” depending on actual costs.

When Wisconsin’s 2025-27 budget was signed in July, schools were told they would get 42% of their special education costs reimbursed for the current year and 45% in 2026-27. But in November the Department of Public Instruction announced that special ed costs and enrollment had both increased, so the first round of payments would only cover 35%.

Along with the additional special ed funding, the bill increased state aid to public schools by $302.5 million. Because of state revenue limits on school districts, the new state aid “would provide property tax relief but not additional resources for school districts,” according to the Legislative Fiscal Bureau memo.

The bill gave the state technical college system an additional $50 million in state aid starting in the 2026-27 school year, also to replace property tax revenue, not increase trade school budgets.

The legislation included a $300 state income tax rebate for individual taxpayers whose state tax bill was at least that much in 2024.

It also would have made tip income and overtime pay exempt from state income taxes, mirroring federal tax policies that have been enacted under President Donald Trump.

On the Assembly floor, Democrats argued that the package would turn the current surplus into a budget deficit within three years, that the tax rebates would barely be a drop in the bucket for struggling Wisconsinites and that the poorest residents of the state would get no relief. 

Rep. Angela Stroud (D-Ashland) noted that for the median homeowner in Wisconsin, the property tax relief would amount to just $8.91 per month. 

“That’s less than two gallons of gas today,” Stroud said. “Who knows how much gas will cost by then?”

Republicans repeatedly touted the bipartisan nature of the negotiations between Evers and Republican leadership, mocking the Assembly Democrats for not being kept in the loop while accusing them have having a “meltdown,” a “temper tantrum,” “Trump Derangement Syndrome” and putting a “knife” in Evers’ back for not supporting the deal. 

“Let’s find a consensus, because the people of Wisconsin expect us to do better than to just stand up and shake our fists,” Vos said. “Maybe today, some of [the Democrats] will be persuaded by their own governor. Believe it or not, I actually was, and I feel like I’m probably a more harsh critic than the people on the left. So if people on our side are willing to listen and compromise, why can’t you? Why can’t people on the left just one time put aside politics and say, ‘let’s do the right thing.’”

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Rep. Dean Kaufert (R-Neenah) criticized heavy spending in state legislative races, which is likely to continue this year, as he announced his retirement Monday. His departure creates an open race for a swing Assembly district that could help determine control of the Assembly. 

Kaufert said in a statement that family and health concerns have led him to retirement. 

“After a great deal of thought and reflection, there comes a time when you simply know it is time,” Kaufert said.  “Family and health concerns have led me to this decision, but it is not one I make lightly.  Representing the Fox Valley has been an honor and privilege.”

Kaufert represents Assembly District 53, which encompasses Neenah, Menasha and part of Appleton. Kaufert was the mayor of Neenah from 2014 to 2022 and also previously served in the state Assembly from 1991 to 2015. 

With new, more competitive legislative maps adopted in 2024, Kaufert came out of retirement to run for the state Assembly in 2024 and won in a close race to the Democratic candidate by about 360 votes — a result that helped Republicans maintain their majority during the 2025-26 legislative session. 

“Making a difference and standing up for those who need a voice — the little guy — has been at the heart of everything I have done,” he said. 

Assembly Majority Leader Tyler August (R-Walworth) thanked Kaufert for his service in a statement. 

“Dean’s decision to return to the Legislature for one more term speaks to his commitment to public service and to this institution. He didn’t have to come back but he chose to step forward and serve again, and we are better for it,” August said. 

Kaufert’s retirement means Republicans will not have the advantage of incumbency in the race for his seat and opens up the race for the district, which will help determine control of the state Assembly in 2027. 

Republican lawmakers currently hold 54 seats in the Assembly to Democrats’ 45 seats, meaning Democrats  would need to hold all their seats and win five additional seats in November to win the majority. 

Kaufert is now the eighth Assembly Republican to decide against running for reelection this session — the first from a swing district. 

Devin Remiker, chair of the Democratic Party of Wisconsin, said in a social media post that the seat is crucial for an Assembly majority, noting that when the district elected Kaufert, it also voted for former Vice President Kamala Harris in the 2024 presidential race by 4.4 percentage points. The district recently voted for Justice-elect Chris Taylor, the Democratic-backed candidate in the April state Supreme Court race by 27.5 percentage points. 

“Republicans see the writing on the wall and the big victory in April has made it clearer than ever that change is coming to Wisconsin this November,” Remiker said. 

Other Republican lawmakers are planning their reelection bids including two incumbents from swing districts: Rep. Shannon Zimmerman (R-River Falls) and Rep. Benjamin Franklin (R- De Pere). 

In his announcement, Kaufert said the political environment in the state Assembly has improved and has led to more bipartisan work, but criticized the increasing negativity and spending in campaigns for office. 

“Campaigns have become increasingly more negative, with vicious personal attacks and an overwhelming influx of out-of-state special interest money,” Kaufert said. “The ‘win-at-all-costs’ mentality — where opponents are too often demonized and unfairly personally attacked — has taken a real toll on me and my family.”

Kaufert said that both parties are to blame, but called the amount of spending by Democrats on his seat, which pays a salary of about $60,000, “ridiculous.” In 2024, Kaufert’s Democratic opponent spent $1.76 million in his campaign for the seat. Kaufert spent $1.24 million, according to campaign finance reports.

Spending on campaigns will likely continue to increase this year, especially with control of the chambers on the line, and Democrats are already investing in the seats that could help determine control.

The Assembly Democratic Campaign Committee, the fundraising arm for the Assembly Democratic caucus, contributed $1 million to Rep. Steve Doyle’s reelection campaign, according to his latest campaign finance reports. It was the most of any Assembly incumbents, according to WisPolitics. The Onalaska Democrat is one of the most “vulnerable” Democratic incumbents, having won his last election in 2024 by just 223 votes. 

Wisconsin election campaign finance laws, adopted in 2015 under the leadership of former Gov. Scott Walker and the Republican-led Legislature, allow political parties to accept unlimited donations from individuals and corporations and transfer unlimited funds to state-level candidates, including those for Assembly. 

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