GOP leaders propose tax relief compromise that leaves out money for general school aid
“I think we're right on track… I'm happy to meet this afternoon. I mean, I'm sure the governor is practicing his speech for tonight. There's probably some time in between. There's a lot of opportunities to discuss," Vos said at a press conference Tuesday afternoon. (Photo by Baylor Spears/Wisconsin Examiner)
Senate Majority Leader Devin LeMahieu (R-Oostburg) and Assembly Speaker Robin Vos (R-Rochester) are proposing a $2.3 billion package to Gov. Tony Evers Monday that would provide one-time tax rebates and raise special education funding, but wouldn’t deliver any general school aid increases.
“We actually accepted the governor’s challenge where he said, make sure that we have money for schools and we wanted to make sure that there is money for the residents of Wisconsin,” Vos said during a press conference on Tuesday. Vos said lawmakers sent their letter to Evers on Sunday and had yet to hear from Evers as of Tuesday afternoon but they hope to “hear from him today so we could be in negotiations to have a bill passed before we adjourn Friday.”
The proposal comes after LeMahieu said last week he was being left out of negotiations with Vos and Evers. Evers’ spokesperson Britt Cudaback suggested the leaders sit down to discuss the plan. She has also previously said that any bipartisan agreement needs “investments to ensure our K-12 schools receive the resources they need and were promised in the state budget.”
The Assembly plans to meet in a series of marathon floor sessions this week with the goal of wrapping up its work for the session by the end of the week. The state Senate plans to work during March as well, but with the Assembly’s self-imposed deadline, this month is the last chance to pass bills that could get to Evers’ desk before the next legislative session.
Vos said the end of the week deadline could help ensure that Wisconsin politicians act and said it is a “perfect time for us to engage in the good faith negotiations.”
“There’s no reason for the money to sit at Madison longer than necessary so we can have it actually out the door,” Vos said.
The back and forth on the property tax reduction and school funding package came as Evers, who opted not to run for a third term in office this year, prepared to deliver his final State of the State address Tuesday night.
“I think we’re right on track… I’m happy to meet this afternoon. I mean, I’m sure the governor is practicing his speech for tonight. There’s probably some time in between,” Vos said. “There’s a lot of opportunities to discuss.”
One major piece of the GOP proposal is an income tax rebate of $500 per person and $1,000 for married joint filers at a cost of nearly $1.5 billion in 2026-27. Senate Republicans first proposed the idea last week.
Rep. Patrick Snyder (R-Weston) said the surplus is proof that “we’ve over taxed our citizens in Wisconsin” and that the rebate checks could help provide some relief to Wisconsinites.
In response to Evers’ priorities, Republican lawmakers in their letter proposed $200 million for special education costs — including $80 million to bring the special education reimbursement rate to 42% in 2026 and $120 million to bring it to 45% in 2027 — in keeping with Evers’ proposal.
The state budget committed to reimburse school districts for their special education costs at a rate of 42% in 2025-26 and 45% in 2026-27. However, recent estimates have found that the money that lawmakers and Evers set aside in the budget will not be enough to make good on those promises.
Lawmakers did not provide any additional funding for general school aids in the budget, disappointing school leaders and advocates who said schools will continue to struggle with funding difficulties. Republican lawmakers left out increases to general school aid in part because of their frustration with Evers’ 400-year veto, extending an annual $325 per pupil school revenue limit increase well beyond the last budget cycle. Without state funding, however, schools in Wisconsin only have the option to use the authority Evers extended to increase property taxes to the revenue limit increase amount.
Evers had proposed $450 million in 2027 for general school aid to backfill the $325 per pupil increase school districts will have the option of using — alleviating the potential property tax increases that communities across the state would see again at the end of this year.
Republicans excluded that request from their proposal and instead suggested $500 million for property tax relief through the school levy tax credit. Evers had suggested $550 million for property tax relief through the school levy tax credit.
The Wisconsin Public Education Network has called putting state money toward the school levy tax credit as opposed to general school aids “irresponsible and unacceptable.” The credit works by using state funds to reduce property tax bills by making payments to counties and municipalities. It does not provide additional revenue to school districts for operations.
In their letter, GOP leaders expressed concerns about the school revenue limit increases, saying that additional state aid would lead to less responsible spending by school districts.
“While we know you believe that your 400-year veto was a way to permanently send increases to schools for the next 400 years, the truth is it creates a strong disincentive for school districts to find efficiencies while creating an increased property tax burden on taxpayers,” the lawmakers said.
LeMahieu and Vos said that “no amount of funding increase can address the root causes of the education funding problem” and that leaders should be focused on “reform” as opposed to “guaranteed funding to prop up a broken system.” Republican lawmakers have advocated for bills that would encourage school districts to consolidate this session, which Democratic lawmakers and school advocates have criticized.
Lawmakers said they would also support an individual income tax reduction of up to $300 for teacher expenses at an estimated cost of $1.4 million in 2026-27.
Republicans are also seeking to tie the tax relief package to other priority areas.
Changes made to the Supplemental Nutrition Aid Program (SNAP) — known as FoodShare in Wisconsin — in the massive tax cut and spending bill signed by President Donald Trump last year included a penalty, requiring states to pick up some costs if the state’s payment error rate exceeds 6%. Wisconsin officials have estimated a penalty could cost the state up to $205 million.
The Evers administration has said $69 million and 56 additional administrative positions for DHS are needed to ensure that the state’s error rate remains below the 6% error rate.
The lawmakers said they would agree to funding for FoodShare to help keep the error rate low, but asked that positions that have been vacant for 18 months be used instead of providing new positions to the agency.
In addition to the GOP request related to the positions, Republican lawmakers are also seeking to tie a ban on using SNAP benefits to purchase soda and candy to the legislation.
Rep. Clint Moses (R-Menomonie) said the change would ensure SNAP is “utilized for healthy, nutritious foods” and will help make sure that “some of the soda, junk food, and other stuff that our kids and our adults are filling their bodies with” isn’t purchased with the benefits.
The proposal also includes funding to the Department of Military Affairs for disaster assistance including $10 million in 2025-26 for awards no greater than $25,000 per household and $20 million in 2025-26 for grants of up to $50,000 to businesses.
The money is meant to help Wisconsinites affected by record floods last year after a recent request for disaster assistance was denied by the federal government.
“We feel that the states have a position here that should have some funds available particularly for businesses where they have no relief available to them at all,” Rep. Dan Knodl (R-Germantown) said.
The total price tag of the proposed package is about $2.3 billion — nearly the amount of the state’s entire estimated budget surplus.
“This is a generous, good-faith attempt to achieve our mutual goals of limiting the property tax impact caused by your misguided 400-year veto, helping families address rising costs and ultimately doing what is best for the people of Wisconsin,” the lawmakers stated in their letter. “Majority caucuses in both houses have agreed to this plan in principle. With the legislative session soon ending, time is of the essence. We both stand ready to meet at your earliest convenience.”
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