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Wisconsin lawmakers and Gov. Tony Evers approved a $111 billion state budget early Thursday morning that will increase spending on child care and the Universities of Wisconsin system, while cutting taxes by $1.5 billion. 

The budget was the first since Democrats gained 14 seats in both chambers of the Legislature under new legislative maps and reflected a stronger bipartisan compromise than in previous cycles. 

Senate Republicans, with only one vote to spare, needed Senate Democrats at the negotiating table to pass the budget after multiple Republican senators indicated their disapproval with the budget. Four Republican state senators voted against the budget, and five Democratic state senators voted for it.

The budget was approved in both chambers on Wednesday evening and signed by Evers after 1 a.m. because lawmakers wanted to finish the state budget before President Donald Trump’s big federal bill passed. The federal bill capped Medicaid reimbursement for state taxes on hospitals at 6% and would have frozen tax rates on states like Wisconsin, which previously was at 1.8%. The move helped Wisconsin secure $1.5 billion in additional federal funds.

Evers called 2025 the “year of the kid,” prioritizing more funding for child care, K-12 education — particularly special education reimbursement — and higher education. While those areas received significant funding increases, and Republicans got their desired tax cut, postpartum Medicaid extension, renewal of the popular Knowles-Nelson public land acquisition fund and several other items, many with bipartisan support, were missing from this budget.

Postpartum Medicaid eligibility not extended to a year

Notably missing from the budget is extending postpartum Medicaid coverage to 12 months — an item that every single senator on the budget committee voted for when it was last brought before the Senate. 

“The governor called this budget the ‘year of the kid,’ and the year of the kid really needs to include mothers and parents and their mental health because the first indicator of a child’s well-being is their parents’ mental health, their mother’s mental health,” said Casey White, marketing and communications manager for Moms Mental Health Initiative. 

Evers asked for the state to allocate over $24 million to extend postpartum Medicaid eligibility to 12 months. Advocacy groups and women’s health experts say the most risky time for a mother’s health is six to nine months postpartum, but eligible new mothers currently only receive about two months of coverage. 

Wisconsin is one of only two states that do not extend eligibility for 12 months, despite the severe maternal morbidity rates rising in the state and increases in perinatal depression diagnoses. 

Extending postpartum Medicaid has received bipartisan support in both the Senate and Assembly. In April, the Senate passed a stand-alone bill that would extend postpartum Medicaid coverage. But the bill has stalled in the Assembly. 

Former Rep. Donna Rozar, R-Marshfield, told Wisconsin Watch in January she authored the bill because she wanted to support new mothers. Even with bipartisan support in his chamber, Assembly Speaker Robin Vos, R-Rochester, refused to schedule it for a hearing last session. 

This time around, Joint Finance Committee Republicans did not remove Evers’ proposal to extend postpartum Medicaid eligibility from budget consideration, meaning the committee could have introduced and passed a motion including the provision. 

But as the committee wrapped its work last Tuesday, the extension was missing. Now, the stand-alone legislation awaits an unlikely hearing in the Assembly. 

Child care provisions enough?

Late in the budget process it became clear that one of Evers’ highest priorities was funding a child care program supported by expiring federal pandemic relief dollars. The budget includes more than $361 million to fund direct payments to providers, increase child care subsidies for low-income families and fund an early school readiness program.

While the bipartisan willingness to address the ongoing issue of child care access in the state is a significant step, Ruth Schmidt, executive director of the Wisconsin Early Childhood Association, explained the $110 million in direct payments to providers is far from enough to stabilize the field. 

Another critical part of the budget was the early school readiness program. Schmidt said allocating general purpose revenue to this program demonstrates lawmakers trust in the provider community to supply a school readiness curriculum to families around the state.

The third major piece of funding approved this budget cycle is raising the Wisconsin Shares child care program to the 75th percentile of market rates, allowing low-income families to access affordable, quality care. 

“I always will argue that we can do more, and we can and other states do more, but for us to be at a place where we are restoring payments to 75% of the market is hugely important,” Schmidt said. 

Schmidt noted that not all of the provisions are what is recommended by child care advocates, particularly the ratios of children to caretakers. 

The budget would increase the class size for 18- to 30-month-olds by instituting a ratio of one caregiver to seven children rather than the recommended one-to-four. Schmidt said that is not something WECA would stand behind as best practice in the state and is not necessarily the right move for long-term investment into child care.

WECA is preparing to provide additional training to the facilities that take on this pilot program over the biennium. 

Environmental advocates look to fall session for stewardship, PFAS fund

Two major environmental initiatives — reauthorization of the Knowles-Nelson Stewardship Fund and increased funding for the PFAS trust fund created in the last budget cycle — failed to make it into the final budget.

But Republican lawmakers have shown a willingness to reauthorize the stewardship fund, with a separate bill by Rep. Tony Kurtz, R-Wonewoc, and Sen. Patrick Testin, R-Stevens Point, aiming to fund the stewardship program through 2030. The fund supports land conservation and outdoor recreation through grants to local governments and nonprofits and also allows the Wisconsin Department of Natural Resources to purchase and maintain state land. 

Sen. Jodi Habush Sinykin, D-Whitefish Bay, shared her disappointment that the budget deal did not reauthorize the stewardship fund and pointed to it as one of the reasons she voted against the budget. 

“Beyond the long-time importance of this program to me personally, Knowles-Nelson funding has stood out as the single-most popular issue I have heard from my constituents during my first six months in office – from voters across the political spectrum,” Habush Sinykin said.

The state Supreme Court recently limited the power of the state budget committee to block conservation projects. Although funds for the program are currently set to expire on June 30, 2026, most funds are already awarded, and a lapse in funds could impact planning for land trusts and local governments hoping to access the funds, according to the program.

Paul Heinen, policy director at environmental policy organization Wisconsin Green Fire, and a lobbyist for the first stewardship fund in 1989, said the battle over reauthorization mirrors past debates over the fund. 

“The stewardship fund is, could very well be, the single most loved state program,” Heinen said. “But oftentimes it’s leadership who says, no, we’re spending too much money. We’re not going to spend money on this, and then invariably, the other 120 legislators overrule them at some point, and the stewardship fund is reauthorized. That’s where we’re at right now.”

Heinen said he was “99% sure” the fund would be reauthorized in future legislative sessions but was uncertain at what level the fund would be restored. Evers’ budget proposed reauthorizing the fund with $100 million of bonding authority per year through 2036. The Republican bill proposes $28 million per year for the next four years.

UW system funding rebounds with some strings attached

Just two weeks ago, Republican lawmakers floated an $87 million cut to the Universities of Wisconsin budget, yet in the final deal between lawmakers and Evers, the system will see a $256 million increase, the largest increase in over two decades. 

Republican lawmakers conditioned their support for additional funding on several things, including a required transfer credit policy between system schools, the continuation of a cap on state-funded positions and workload requirements for faculty. 

UW-Madison faculty advocacy group PROFs celebrated the increased funding for the system, but called the updated workload requirements an overreach “that would intrude on the responsibilities of both institutions and their faculty members.” 

The budget also specifies certain funding to be directed toward lower-enrollment universities. The funding formula the UW system uses to distribute state aid among schools has been a source of controversy among Republican lawmakers who have argued for more transparency. 

Jon Shelton, president of AFT-Wisconsin and professor at the University of Wisconsin-Green Bay, said he was frustrated faculty and staff were not part of negotiations over work requirements.

“It takes something that otherwise could have been, I think, relatively positive for the UW system and created a poison pill that was unnecessary,” Shelton said. 

Although the $256 million increase is a significant boost to the system, the funding is only a fraction of the $856 million that Evers and UW requested. 

UW system President Jay Rothman had indicated that if the $856 million request was fulfilled, the remaining two-year branch campuses, several of which have closed in recent years, battling funding shortfalls and enrollment decreases, would stay open, and tuition would not increase. System spokesperson Mark Pitsch did not respond to a request for comment on the potential impacts on branch campuses or tuition.

DAs but no public defenders

Republicans voted to increase assistant district attorneys in Wisconsin counties, notably adding seven ADAs in Brown County, but they didn’t add any public defender positions. Without filling these positions, the American Civil Liberties Union reports current public defenders are overburdened and cannot conduct thorough investigations into a case. 

Brown County already faces a backlog of cases, with reports saying there has been an increase of over 2,000 open criminal cases in the past decade. While adding ADAs may allow the prosecutors to bring more cases to the courts, failing to add public defenders will not address the backlog of criminal cases. 

That means as more cases are presented by ADAs, there might not be enough public defenders to actually represent the individuals, so those accused of a crime may spend more time in jails as they await an attorney. 

Republicans also added 12.5 ADA positions in Milwaukee County. 

Milwaukee has been addressing backlogs but still faces challenges. By adding more ADAs to bring cases forth, while ignoring a shortage of public defenders, backlog challenges could be exacerbated.

Here’s what didn’t make it into Wisconsin’s $111 billion state budget is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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As the Joint Finance Committee continues to make progress on completing the 2025-27 budget, a recent Marquette Law School poll reveals where voters stand on some of the key sticking points in the budget debate.

JFC plans to meet on the remaining topics, including the UW system, health care and the capital budget, Tuesday morning after delaying Friday’s meeting by 12 hours. Assembly Speaker Robin Vos, R-Rochester, remains hopeful the budget will be completed this week.

The next budget will not be approved by the July 1 deadline, so current spending levels from the 2023-25 budget will carry over into the next fiscal year. 

Republicans are working to make a deal on the state budget that both Democratic Gov. Tony Evers and state senators will support. Senate Republicans have an 18-15 majority, so they can only lose one Republican vote without picking up votes from Democrats. Two Republican senators have voiced discontent with the current budget process.

K-12 funding vs. property taxes

The Marquette poll found 57% of Wisconsin residents would rather see lower property taxes, while 43% support more funding for K-12 schools — a figure that has been trending away from support for public schools over the past decade. 

During the last budget cycle, Evers used a creative veto to increase caps on K-12 funding each year. To keep property taxes lower for residents under the so-called 400-year veto, the state would need to increase general state aid for public schools. 

But the Republican budget provides no increase to general school aid, which Democrats argue could in turn lead school boards to raise property taxes and continue to rely on referendums to make up for the lack of state funding.

2024 saw a record number of school referendums with over half of all public school districts requesting additional funding to account for inflation and lack of financial support from the state, increasing taxpayers’ property taxes around the state.

Postpartum Medicaid

The poll also found 66% of residents want to see legislation passed to extend Medicaid coverage for new mothers to 12 months, rather than the current coverage of 60 days postpartum. 

Evers proposed extending coverage to 12 months in his 2025-27 budget proposal, but JFC has yet to make a decision on this provision. The committee intended to vote Friday but delayed discussion on health services. Co-chair Rep. Mark Born, R-Beaver Dam, said the committee plans to take action on health services, among other programs, at a “later date.”

Evers previously proposed extending coverage to 12 months in his 2021-23 budget request, but Republicans revised the budget to instead request 90 days of postpartum coverage — the federal Centers for Medicare and Medicaid Services denied the request, saying it would not approve a waiver for coverage under one year. 

While there has been bipartisan support for extending postpartum coverage in the Senate and the Assembly, Vos previously blocked the bill from a hearing. Vos has expressed opposition to expanding welfare in the state.

UW system

Wisconsin voters were divided on support for the Universities of Wisconsin system, with 49% of those surveyed saying the UW system budget should stay the same size, 23% supporting a reduction and 27% supporting an increase. 

The UW system has requested a record-high $856 million increase while Republican lawmakers have floated an $87 million cut to the system. 

UW system leaders have pointed to Wisconsin’s ranking at 44th in the nation for public funding for universities and the closure of two-year branch campuses. When given this information, 41% supported an increase, while 57% of voters said the UW should still receive the same amount of state funding.

Evers called the potential cut a “nonstarter.”

Other budget-related topics in the poll include: 

• 79% of Wisconsin voters said they were very or somewhat concerned about PFAS contaminating their drinking water, and 33% said the so-called “forever chemicals,” which are found in firefighting foam and nonstick cookware, were the most important issue impacting drinking water. Evers’ budget proposal included $145 million for a PFAS cleanup trust fund — one of 600 items removed by the JFC in early May. 

• While 71% of voters favor a “major increase” in state funding for special education. JFC increased reimbursement to 35% in year one and 37.5% in year two of the biennium over the current rate of 30%. Evers requested 60% reimbursement. 

• 75% of Wisconsin voters supported comprehensive mental health services in schools. The JFC voted to provide $20 million over the next two years for school mental health programs. Evers proposed $170 million for comprehensive mental health services. 

• Support for marijuana legalization has continued to increase in the state. The most recent poll shows 67% of residents favor legalizing marijuana; the number of people in favor of legalization has grown nearly 20% since 2013. Evers proposed legalization in his budget, but Republicans removed it from consideration entirely in early May. 

Here’s how Wisconsin’s Republican budget compares with public opinion is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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Republicans revealed their big-ticket tax cut plan for this budget cycle, passing through the Joint Finance Committee on Thursday a $1.3 billion tax cut over the next biennium and offering incremental increases in special education and technical college funding. Read on for some bite-sized budget updates:

Middle class income and investment tax cuts approved

Currently, taxpayers pay 4.4% in taxes on income between $14,680 and $29,370 and 5.3% on income between $29,370 and $323,290. Under the new plan, which would begin in tax year 2025, the 4.4% tax bracket would expand to include income up to ​​$50,480. For married couples filing jointly, the income covered in that bracket would rise from $39,150 to $67,300. 

The proposal would reduce taxes by about $190 for a single filer and $253 for a joint married filer. 

Older retirees would also see a tax cut, as they wouldn’t have to pay taxes on up to $24,000 of retirement income that comes out of 401(k)s, IRAs and pensions. That doesn’t include retirement income that is already not taxed, such as Social Security.

The nonpartisan Legislative Fiscal Bureau estimates that those with a retirement account of $1.2 million or more would receive the maximum benefit.

Republican K-12 education plan points to property tax increases

The budget committee voted 12-4 along party lines to increase funding for special education reimbursement, though at a rate lower than recommended in Gov. Tony Evers’ budget and advocated for by parents of special education students. 

Currently, the state reimburses about 30% of the costs associated with providing students special education services to public school districts, and under the Republican proposal, this rate would increase to 35% in the first and 37.5% in the second year of the biennial budget. 

Democratic legislators, Evers and school districts across the state advocated for a 60% special education reimbursement, citing the record number of Wisconsin school districts that have gone to referendum and the state’s over $4 billion surplus.

K-12 education traditionally takes up the largest portion of the state budget; however, the proportion of funding allocated to school districts across the state has decreased from over 43% of the state’s general fund in 2002 to 36% in the last budget cycle.

Democratic and Republican legislators sparred over “right-sizing” the budget, with Republican legislators pointing to the increase in special education funding and desire for fiscal responsibility and Democrats reading testimony from students, parents and school administrators across the state expressing a need for stronger state support. 

Republican legislators also approved 90% reimbursement for high-need special education students — about 3% of special education students — and no funding increase in general school aid. 

Democrats highlighted how by not increasing general school aid, the Republican proposal would likely lead to higher property taxes across the state. If the state increases aid, property tax increases would be limited. 

Republicans pointed to Evers’ 400-year veto as the reason why property taxes will likely increase. That’s because in the previous budget, Evers used a creative veto to increase state-imposed caps on K-12 funding each year for 400 years. 

Technical colleges get modest increase

Republicans proposed an increase of more than $8 million to general aid for technical colleges over the next two years, a fraction of  Evers’ $45 million proposal.

Unlike per-pupil aid for students in the Universities of Wisconsin system, which ranks 43rd in the country, the Wisconsin Technical College System (WTCS) is currently funded at about the median rate for technical college systems. 

In an interview with the Cap Times, WTCS President Layla Merrifield said increased demand for fire and EMS training in rural areas of the state, in addition to a bounceback in enrollments since the COVID-19 pandemic and workforce shortages, necessitates the $45 million increase in state funding.

Supreme Court police force denied

Credible threats against Wisconsin judges are on the rise. There were 30 in 2022, 46 in 2023 and 29 in 2024, but 22 in just the first three months of this year.

Despite that, Republicans last week rejected the Supreme Court’s state budget proposal to create the Office of the Marshals of the Supreme Court — a law enforcement agency to serve the Supreme Court specifically. The proposal would’ve cost $2.3 million over the biennium to fund 8.4 positions.

Judges are responsible for making decisions impartially, even in the face of intimidation. Democrats on the state budget committee warned additional threats could sway rulings. 

“Given the role that they play in our judiciary and in order to be impartial, we shouldn’t want them to be in danger, or to fear for their safety, or to have any outward pressures on them that would influence the case,” Rep. Tip McGuire, D-Kenosha, said. 

Threats to federal judges have doubled since 2021. The increase has been attributed to the politicization of courts. In Wisconsin there were also contentious Supreme Court elections in 2023 and 2025.

Legislative Republicans argue it would be redundant to allocate funds to create a new police agency. 

“The Capitol Police protects the Capitol for visitors, employees, legislators, the court, whoever happens to be here,” Rep. Mark Born, R-Beaver Dam, told reporters. “I think they’ll continue to provide top-notch work here at the Capitol.”

Private health insurance market gets a boost

To address the rising costs of private insurance premiums in Wisconsin, the budget committee approved legislation to raise the cap on a reinsurance fund the state created to help insurance companies pay high-cost claims. The Wisconsin Healthcare Stability Plan — a program aimed at making insurance more affordable — would receive an additional $35 million, setting the cap at $265 million. 

In 2024, insurance claims exceeded the cap by $26 million, leading insurance agencies to raise premiums for consumers. The new cap, which is $15 million more than what Evers proposed, aims to address the rising costs of insurance. 

Due to insurance claims exceeding that $26 million cap, JFC Republicans also passed a provision to direct the Office of the Commissioner of Insurance to cover those additional claims up to $265 million for 2025. 

But Republicans decided against Evers’ proposal to automatically adjust the cap based on inflation, meaning if claims once again exceed the cap, raising it would be dependent on what happens in the next budget cycle. 

In recent years, the cost of insurance premiums have increased due to inflation raising the price of goods and services. Federal dollars cannot be used for claims exceeding the cap, putting the burden of higher premiums on consumers.

Big Wisconsin Republican budget plans on taxes, K-12 education come into focus is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.