At a press conference outside the state Capitol Wednesday, Sens. Jamie Wall, Jeff Smith and Senate Minority Leader Dianne Hesselbein urged Republicans to schedule a hearing for their bill expeditiously. (Photo by Baylor Spears/Wisconsin Examiner)

Less than a month before the planned closure of two Wisconsin veterans’ housing sites, a handful of Democratic and Republican lawmakers are seeking a way to save the sites. But bipartisan work on a solution appears out of reach as lawmakers bicker over who is to blame for the lack of funding and over whether to take up Democratic- or Republican-authored bills.

Gov. Tony Evers’ administration announced, shortly after the state budget was completed in July, that two Veterans Housing and Recovery Program (VHRP) sites, one in Chippewa Falls and one in Green Bay, would be closing on Sept. 30 due to a lack of funding in the state budget. One facility in Union Grove will remain open. 

The program, which is run under the Wisconsin Department of Veterans Affairs, serves veterans who are on the verge of or are already experiencing homelessness, including those who have been incarcerated, unemployed or have physical and mental health problems. Participants get access to transitional housing, referrals to service providers, financial assistance, assistance with seeking vocational opportunities and access to a room at a reduced rent for working veterans.

Participants can stay for a maximum of 24 months, but the average length is six to 10 months.

The program has been funded with a combination of an appropriation from the Veterans Trust Fund, payments made by program participants and per diem payments, which are made to the agency by the federal government at a current rate of about $71 per resident per day. However, growing staffing and maintenance costs at the facilities led to the need for additional state support. Evers had included a funding proposal in his budget but that was removed by Republican lawmakers.

Following the news of the closures, Sens. Jeff Smith (D-Brunswick) and Jaime Wall (D-Green Bay) introduced a bill that would dedicate $1.9 million to the sites.

At a press conference outside the state Capitol Wednesday, the bill authors and Senate Minority Leader Dianne Hesselbein (D-Middleton) urged Republicans to schedule a hearing for their bill expeditiously.

Citing the upcoming closure date, Hesselbein said the Senate and Assembly must meet. She said committees could meet this week or next to hear the legislation and pass it out of committee this month and have the bill on the floor in October.

“It’s a cool day out here today. The weather is going to get worse. We need to take care of our veterans,” Hesselbein said.

According to the Associated Press, the state Senate is not planning to meet for a floor session this month. 

“It’s way past time to take action to keep these facilities open so they can continue to provide vital services to our veterans,” Hesselbein said, adding that “when Democrats have the power of majority which we believe is coming in just a few years, we will always have your backs.” Democrats are seeking to flip control of the state Senate in the 2026 election cycle. 

Smith called Republicans’ lack of action on the issue “callous,” noting that Democrats tried months ago to include the funding in the budget. When Democrats proposed an amendment to  fund the veterans’ housing sites in the state budget, every Republican voted against it except for Sen. André Jacque (R-New Franken). 

It is unlikely that the Republican-led Legislature will allow Democrats’ bill to advance. 

“[Republicans] have ignored our pleas. As far as we know, we’re not going to see these bills on the floor this month, and this is the final chapter. This is when it ends. No hope for the veterans that they like to pretend that they care about,” Smith said. 

Jacque, meanwhile, began circulating his own bill last month to provide the needed funding for the facilities. 

The Republican bill, coauthored by Jacque and Rep. Benjamin Franklin (R-De Pere), includes $1.9 million for the VHRP program as well as two other policy changes related to veterans. 

One would require the Board of Regents of the University of Wisconsin system to provide funding to the UW Missing-in-Action Recovery and Identification Project to support missions to recover and identify Wisconsin veterans who are missing. The other would lower the eligibility threshold for veterans and surviving spouses to claim the veterans and surviving spouses property tax credit.

Jacque said the two policies were also left out of the budget and are critical to helping veterans.

“Every budget has missed opportunities, and I am hopeful that the rest of the session will provide openings to address those challenges in a number of areas, particularly providing for our veterans who have done so much in service to our country and communities,” Jacque told the Wisconsin Examiner in an email.

Jacque said he has “found a lot of support” from his Republican colleagues and is “hopeful that the bill will be referred to the Senate Committee on Natural Resources, Veterans and Military Affairs,” which he chairs.

In response to a question about Jacque’s bill and whether Democrats are working with any Republicans to advance funding for the facilities, Hesselbein brushed off the GOP bill saying it simply pulled from Democrats’ ideas. 

“What Sen. Jacque did is he took three Democratic bills and pushed them all into one omnibus. We’ll be interested if he gets a hearing. I’m not sure…,” Hesselbein said. “I like to have clean legislation when we try to have committee hearings so you can hear exactly what’s going on with those bills, so we are supporting the bill that Sen. Wall and Sen. Smith put forth.”

Smith said Democrats separated the VHRP funding from other policies purposefully. Wall added that their bill is a “smaller, cleaner ask” than a bill with multiple items. 

Jacque told the Wisconsin Examiner in an email that he is “extremely disappointed by Sen. Hesselbein’s comments and her unwillingness to put partisanship aside for the sake of working to support veterans — as I did when I voted for the omnibus veterans motion her caucus introduced during the budget. I am rather surprised at her comments due to her longstanding penchant for putting forward omnibus bills and amendments.” 

Jacque noted that he has supported and authored legislation to expand the property tax credit for veterans and surviving spouses in previous years “going all the way back to my service in the State Assembly,” and has also supported previous UW MIA legislation. 

“I supported VHRP within the budget and it was not introduced as standalone legislation by any legislator previously to that, at least to my knowledge,” Jacque added. “I didn’t think Sen. Hesselbein was that unaware of the history of these initiatives.”

Not every Republican lawmaker has appeared open to providing additional funding that would be used to keep the two VHRP programs open. Following the initial news of the planned closures, Sen. Howard Marklein (R-Spring Green) and Rep. Mark Born (R-Beaver Dam) co-chairs of the Joint Finance Committee, blamed Evers for not negotiating for the money in the budget.

According to the Green Bay Press Gazette, Sen. Eric Wimberger (R-Oconto) claimed last week that Evers had a “slush fund” — referring to federal pandemic aid — and should be able to find the money to keep the facilities afloat. He pointed to the Wisconsin DVA’s Veterans Trust Fund, a state fund that supports most grant and benefit programs for Wisconsin veterans, and said the agency has regularly returned around $1 million in unspent funds each year and in 2025, the agency sent back about $600,000.

WDVA Assistant Deputy Secretary Joey Hoey has disputed the comments, saying that the agency is “only allowed to spend the money they tell us to spend.” He has also said the trust fund cannot be used for the staffing costs and that there isn’t enough in it.

Wall objected to Wimberger’s “slush fund” comments as well on Wednesday, saying that federal American Rescue Plan Act money has been spent. ARPA funds were used to help support costs for the program in 2023-24. States had to expend the one-time ARPA funds by the end of 2024.

“[Evers] took some ARPA interest funds and used it to help prop up the program. Those funds don’t exist anymore. The ARPA funds all had to be allocated by the end of last year,” Wall said. “The ARPA interest money was all spent in the last budget, so that get out of jail free card doesn’t exist.”

Wisconsin lawmakers heard testimony Thursday on a bill to make tips for restaurant servers and other workers exempt from Wisconsin's state income tax. (Getty Images)

Wisconsin policymakers approved more than $1.3 billion in tax cuts in the latest state budget but the exclusion of a “no tax on tips” proposal has lawmakers pushing ahead with a bill that would line up state law with a new federal law. 

Bill coauthor Rep. Ron Tusler (R-Harrison) said during a hearing in the Assembly Ways and Means committee that lawmakers should help working class people who are “trying to get themselves to that middle class” with Assembly Bill 38. A hearing on the bill was held in the Senate in May, though it has yet to come up for vote in either chamber. 

“When I was a younger man, I was a waiter at Perkins, and I received tips. I also received tips for a couple years as a valet, and folks that receive tips aren’t just waiters and valets, but also housekeepers, bartenders, delivery drivers, massage therapists, hairdressers, taxi drivers, tour guides,” Tusler said. “Those are the type of people we’re talking about, trying to help with this bill, trying to not tax and as representatives, these are great folks for us to target, and as Christians, we should always be trying to help the poor.”

President Donald Trump’s “One Big Beautiful Bill” signed into law on July 4 includes a federal provision that will allow workers to deduct up to $25,000 in tips annually from their taxable income. Those earning more than $150,000 aren’t eligible for the deduction. 

The Wisconsin bill and a recent amendment to it seeks to implement the same policy when it comes to the state income tax, which currently considers tips as taxable income. The deduction would apply to tips whether paid by cash or credit. Similar to the federal law, the provision will go into effect starting tax year 2025 and sunsets after tax year 2028 — around the end of Trump’s second term in office. 

“Any time that we can allow people to keep more of their hard-earned money — that’s going to be something that I’m supporting,” Sen. Andre Jacque (R-New Franken) told the committee.

Erin Vranas, co-owner of Parthenon Gyros located in downtown Madison and chair of the Wisconsin Restaurant Association’s Board, said many restaurant employees are struggling with semi-unpredictable income. 

“Every dollar matters, so this bill really could help provide meaningful relief,” Vranas said, adding that it would also help restaurants trying to recruit and retain employees. “Wisconsin restaurants face ongoing workforce shortages, and I understand this isn’t just a restaurant thing, but we definitely feel it in this industry. AB38 will help us recruit and retain staff, making restaurant jobs more competitive and sustainable. When employees keep more of their hard-earned tips, then they’re more likely to stay and grow and see hospitality as a sustainable career, which strengthens both our businesses and Wisconsin as a state.” 

The minimum wage for tipped employees in Wisconsin is currently $2.33 per hour. Employers are required to make up the difference if an employee’s combined wages and tips do not equal the regular minimum wage of $7.25 per hour.

Susan Quam, executive vice president of the Wisconsin Restaurant Association, said she only knows of two restaurants that  pay the minimum wage. Those restaurants have a $100 per person check average and employees typically make $20 per customer “every single time they work, so we’re talking about folks who are making $100 to $150 dollars an hour in tips.” WRA, a nonprofit trade association that represents thousands of food, beverage and hospitality businesses, supports the bill.

“The vast majority of our members tell us that they’re paying well above that $2.33 to their tipped employees, some of them higher than the $7.25 minimum wage,” Quam said. “The marketplace is dictating what that base wage is, not necessarily the fact that they are getting tips.”

Tusler explained that employees would still need to report tips, both because there is a limit on the tax deduction and because tipped employees need a record of their full income when applying for loans. 

“It would make it more difficult for those tip earners to borrow money for their houses or their cars,” Tusler said.

He told the committee the bill would also cut down on confusion between the federal and state policies when people are filing taxes. 

The tax break also wouldn’t cost the state much, Tusler said. The Department of Revenue estimates that the state brings in about $33.7 million a year from tips and would lose about that much in each year of the biennium under the proposal. 

“That’s it,” Tusler said. “We have a $111 billion budget.”

The recent bipartisan state budget cut taxes by about over $1 billion, but the tips proposal was not included in the budget passed by the Republican-led Legislature and signed by Gov. Tony Evers last month. Evers had included a similar proposal in his budget proposal, but Republican lawmakers threw it out when they started working on the budget. 

A bipartisan group of lawmakers, including Jacque, previously introduced the idea of exempting cash tips from taxes in 2019, though it never became law. 

The idea picked up steam nationally when President Donald Trump started campaigning on the idea, which led Republican lawmakers to reintroduce the proposal in Wisconsin this year.  

The coauthors of the bill expressed frustration that no Democrats have signed onto the bill yet, noting that Evers has supported something similar before. 

“This was something where Gov. Evers basically took that previous proposal… cut and pasted that into his budget proposal, so it’s not like there was ever any indication that this wasn’t something that shouldn’t have bipartisan support,” Jacque said. “And I certainly hope that it will going forward.”

Rep. Joan Fitzgerald (D-Fort Atkinson) said during the hearing that she and her husband, who is a bartender, have discussed the issue extensively since it started gaining popularity around the 2024 election and questioned whether a bigger conversation about helping lower-income workers needs to be had. 

“I would say encouraging employers to have better benefits, higher pay, better working conditions are also ways we get people to realize the American dream,” Fitzgerald said. “Cutting taxes might be one small part of that, but there’s a broader array of things that we can do, and if, and if that’s your goal, and it’s my goal, then I say we attack some of those other issues.” 

Jacque said he understands that tax relief needs to be multifaceted, but said that if the state starts “mandating things on employers that potentially raise costs…, you aren’t going to have customers and those jobs aren’t going to be supported.”

University of Wisconsin Oshkosh. (Miles Maguire | courtesy of the photographer)

Republican lawmakers are proposing a state law to  limit tuition increases after the University of Wisconsin system approved another tuition hike earlier this month. 

The Board of Regents voted earlier this month to increase tuition by 5% at most UW campuses. UW-Green Bay is the exception with a 4% tuition increase after opting out of an additional 1%. UW-River Falls received a 5.8% increase in tuition to help support student success initiatives. 

According to the UW system, the increase will be an average of about $382. 

The draft bill, coauthored by Sen. Andre Jacque (R-New Franken) and Rep. David Murphy (R-Greenville), would prohibit the University of Wisconsin Board of Regents from increasing undergraduate tuition by more than the consumer price index increase in a given year. The authors said the latest increases were “roughly double the increase in the Consumer Price Index over the past year.” 

“Now more than ever, the Legislature must implement a common sense law placing controls on these types of skyrocketing tuition increases,” the lawmakers wrote in a cosponsorship memo. “That’s why we are again introducing legislation to cap tuition and fee increases for in-state Wisconsin undergraduates at levels no higher than the rate of inflation.”

UW spokesperson Mark Pitsch said in a statement responding to the bill that the UW is “among the most affordable across the U.S.” 

“It is critical that we have the flexibility to maintain the quality that students deserve and parents expect,” Pitsch said. 

UW President Jay Rothman proposed the tuition increases earlier this month following the signing of the new state budget, which provided a little over $250 million to the UW system — an amount that fell below the requests the system had said would be necessary to avoid tuition increases. 

“After a decade of a tuition freeze and lagging state aid, we believe we have struck a balance for students and families with this proposal and the recent state investments in the UWs as part of the 2025-27 biennial budget,” Rothman said in a statement at the time.

This is the third consecutive tuition increase since the end of the 10-year tuition freeze — a trend that comes as state funding makes up a smaller portion of the UW system’s budget.

State funding currently makes up about a fifth of the UW’s total revenue. In contrast, state general purpose revenue made up 41.8% of the UW System’s budget in 1984-85. 

Regent Ashok Rai said that even with the state investment, there continues to be a gap between the funding and the UW system’s ability to keep up with inflation and compensation increases for faculty and staff. 

“The proposed tuition rates will ensure that UWs remain affordable compared to our neighboring peers,” Rai said.

According to the UW, its tuition increased just 7.7% from 2015 to 2025 — a rate below the tuition increases for its peers in other states, which had tuition increases ranging from 21.7% to 28.8% over the 10 years.