LeMahieu says he’s left out of tax relief negotiation which ‘seems like a purely political stunt’
“What I’m hearing right now is the governor and the speaker are still negotiating, and I have not been invited to those negotiations,” Senate Majority Leader Devin LeMahieu said during a WisPolitics luncheon on Thursday afternoon. “I just feel, at this point, if the governor and the speaker are actually serious about accomplishing something, shouldn't they include both houses?” (Photo by Baylor Spears/Wisconsin Examiner)
Senate Majority Leader Devin LeMahieu (R-Oostburg) says he is being left out of negotiations on property tax relief between Wisconsin Gov. Tony Evers and Assembly Speaker Robin Vos (R-Rochester).
Rising property taxes, a quickly approaching self-imposed deadline to wrap up work in the Legislature this year and a projected state budget surplus of over $2.5 billion formed the backdrop to disagreements between leaders of the Senate and Assembly on a potential tax relief package that broke out into the public this week.
“What I’m hearing right now is the governor and the speaker are still negotiating, and I have not been invited to those negotiations,” LeMahieu said during a WisPolitics luncheon on Thursday afternoon. “I just feel, at this point, if the governor and the speaker are actually serious about accomplishing something, shouldn’t they include both houses?”
In response to LeMahieu saying he wasn’t included, Evers’ spokesperson Britt Cudaback wrote on social media that “actually, yesterday our office suggested that Republican leaders should try talking to each other since they’re clearly not on the same page.”
Vos, speaking at a press conference at the same time LeMahieu appeared at the WisPolitics event, said he texted LeMahieu Thursday morning asking to meet. He told reporters that he is open to any idea, but the public’s biggest concern is rising property taxes.
“There’s no bad cake, and I feel that same way about tax cuts. There are no bad tax cuts… We have not ruled anything out,” Vos said. “But when we have talked to folks, the thing that has most impacted them is the massive property tax increases they saw last December. My own property tax bill went up 24.7%. That’s the highest that I can ever remember being a homeowner.”
Wisconsin property taxpayers recently absorbed the highest tax hike since 2018 — an increase caused by a state budget that raised school revenue limits while keeping state general aid flat, pushing costs onto local property taxpayers, some of whom also voted to approve additional school district referendum requests.
LeMahieu said the projected $2.5 billion budget surplus led to conversations in his caucus about what to do to provide relief to Wisconsinites as well as a Zoom call between the Republican legislative leaders and Gov. Tony Evers a little over a week ago.
“It’s not just property taxes. People are struggling buying groceries… their utility bills,” LeMahieu said.
The Senate Republican caucus discussions led to the introduction of a pair of bills this week that would use about $1.5 billion in state funds to provide one-time tax rebates of $1,000 to married joint filers and $500 to individual filers. Under SB 1 and SB 995, the Department of Administration would need to send the rebates by Sept. 1.
LeMahieu said his caucus thought the rebates were “the best way to use this surplus” and $1.5 billion, the cost for the rebates, is a “responsible number.”
The package announcement came just a day after Vos said he was in negotiations with Evers. According to emails, Evers had proposed to the Republican lawmakers a $1.3 billion package that would provide $200 million, including $80 million to bring the special education reimbursement rate to 42% in 2026 and $120 million to bring it to 45% in 2027, as well as $450 million in 2027 in general school aids to buy out the projected statewide school property tax levy. In exchange, Republicans would get $550 million for the school levy tax credit to help with property tax relief and $97.3 million in 2027 for tax-exempt cash tips.
Cudaback has said that any compromise on property taxes needs to include “investments to ensure our K-12 schools receive the resources they need and were promised in the state budget.”
Vos said he thinks Evers “sincerely” wants to do something about property taxes.
“There have been plenty of times in the last eight years where we have had a disagreement and we had a public argument with Gov. Evers, but on this one… we feel the same,” Vos said. “I don’t know why we wouldn’t negotiate in good faith to try to find something that can actually get across the finish line.”
Vos said Evers’ point about special education funding is a “legitimate” one, noting that leaders said during the state budget that they would fund it at 42% and 45% but the available revenue will not cover those amounts.
Senate Republicans, however, are not happy with Evers’ suggestions.
LeMahieu called the proposal “ridiculous” and said it was only a “BandAid” on the issue that would “saddle the next Legislature with a huge ongoing commitment.” He is referring to the 400-year partial veto exercised by Evers on the 2023-24 budget that has allowed school districts to continue an annual $325 per pupil increase.
“Your property taxes are still going to go up because the 400-year veto is still there?” LeMahieu said incredulously.
LeMahieu said he thought the negotiation “seems like a purely political stunt” or an effort to get something through the Assembly, adjourn and put pressure on the Senate to pass it. He noted that the Assembly is less than a week away from its planned final adjournment for the year.
Vos has said the Assembly plans to be done Feb. 19. The Senate could still pass bills after then, but the same bills must pass the Assembly to make it to Evers’ desk.
“There is no vehicle for whatever plan they come up with… What’s the time frame for all of this to get done?” LeMahieu asked, referring to the process by which a bill must be introduced, have a public hearing and get a vote on the floor of the both Assembly and the Senate.
LeMahieu pointed out that his bill has support from 16 out of 18 Senate Republican caucus members. He added that several Assembly members have reached out with support for the proposal and said the Senate plan “actually makes sense.”
“There has been no communication between offices… Hopefully we are here past next week,” LeMahieu said, adding that there are session days scheduled for March, when the Senate plans to meet, and lawmakers could also work in April.
No action would likely leave decisions about the budget surplus until after the November elections when the makeup of the next Legislature could look quite different with control up for grabs and the next governor, could be either a Republican or a Democrat and will be new to the office.
Vos said rebates are “less easy” and “more expensive,” but he said his caucus believes that negotiating “to find an answer that gets across the finish line is the best answer for Wisconsinites” and he thinks they need to sit down to do so.
“I don’t think [Evers’] idea is a bad one, but I would say it has to be paired with some reductions,” Vos said. “Based on where the Senate is, it looks like they want to have something that’s way bigger than what we were looking at. Bigger is not necessarily better, but it’s not necessarily worse, so I think that’s part of sitting down and understanding what the perspectives are, and finding something that, again, can pass the Assembly, pass the Senate, and get signed by the governor and not just have an argument.”
The Senate bills received a public hearing in the afternoon. Democratic lawmakers questioned whether the rebates would place the state in a precarious position in the future.
After the state budget was completed in July, but before the recent projections, the Wisconsin Policy Forum warned that Wisconsin is spending more than it brings in through taxes which creates a projected structural deficit.
“Why wouldn’t we just put this money in the bank to help us cover the structural deficit?” Sen. Mark Spreitzer (D-Beloit) asked.
“I think we’ll be fine,” LeMahieu said.
Under the bill, the rebate checks would need to be delivered to Wisconsinites by Sept. 15, 2026.
Spreitzer said he thought the proposal could place the state budget in a “bad situation” going into future budgets and suggested that the timing of the rebate payments are suspicious, coming just ahead of the November election.
Wisconsin’s fall elections take place Nov. 3, and many legislators are eager to return to their districts to start campaigning.
LeMahieu on WisconsinEye and other issues
A tax relief package is among several bills Wisconsin lawmakers are trying to get across the finish line. LeMahieu spoke to the chances for action on several issues. He said the issue that is the closest to getting done is a bill that would extend the state’s stewardship program.
State funds will run out for the Knowles-Nelson Stewardship program on June 30, 2026, without action. A bill that the Assembly passed and that recently received a public hearing in the Senate would extend the program, but drastically cut the land acquisition portions of the program.
“We don’t want to give a blank check to our bureaucrats to go buy a bunch of land across the state of Wisconsin, however, we do own a lot of land in Wisconsin and our caucus feels it’s very important to maintain that,” LeMahieu said.
Another issue that has received a lot of attention in the Capitol is the livestreaming of government proceedings. LeMahieu said he thought there has been mismanagement at WisconsinEye, the state’s version of C-SPAN, and his caucus wants to see other alternatives before providing funding for WisconsinEye.
“Is there some other company out there? Do we need five full-time employees when we aren’t doing a whole lot of work after Feb. 17 in the Assembly and March… outside of interviews of candidates who are running for office? We’re using taxpayer money for that?” LeMahieu said.
A Senate bill to solicit bids for livestreaming received a public hearing Thursday, though LeMahieu said he thinks lawmakers could also start the process through a vote on the Joint Committee on Legislative Organization.
LeMahieu said Senate Republicans have not spent a lot of time discussing efforts to legalize online sports betting and he wasn’t sure if that proposal would get through the Senate or Assembly by the end of session. He said he thought that “from a policy standpoint it makes sense.”
The Assembly delayed a vote on a bill to legalize online sports betting at the end of last year.
Sports betting has been allowed in Wisconsin since 2021, but bets have to be made in person at tribal casinos. Lawmakers are seeking to legalize online sports betting by implementing a “hub and spoke” model that would allow servers running betting websites and apps to be housed on tribal land. The state Constitution requires gambling to be managed by the state’s federally recognized Native American tribes.
LeMahieu said he hopes the Legislature takes some action on data centers, though he said he hadn’t looked closely at the bill that passed the Assembly in January. He said he thought data centers are good for local communities, though there are some concerns about ensuring that ratepayers don’t see their utility bills go up.
“Hopefully we can take action and provide some framework around it. I don’t know if the bill that the Assembly passed needs to be amended,” LeMahieu said.
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