While 2024 may have stolen the show as a pivotal election year, the excitement doesn’t end in 2025. That’s right, it’s a state budget year!

Major funding decisions for health care, public schools and universities, the environment, roads and more will be made in the 2025-27 biennial budget. Not only that — a politically divided Legislature and governor must reach an agreement on spending, which totaled nearly $100 billion in the last two-year budget.

Wisconsin Watch will break it down here in our new series: Budget Bites.

This series will regularly appear in Forward, our Monday morning newsletter. We are excited to provide updates on what’s happening with the state budget as it makes its way through the Legislature. Our reporters will also cover key budget items like public education, child care and housing, and we will be looking to hear from those most affected by these issues. 

State agencies have already submitted their funding requests, and Democratic Gov. Tony Evers has finished hosting budget listening sessions across the state. His executive budget proposal will make its debut on Feb. 18. The Republican-controlled Legislature will then review it and make significant changes before Evers signs a final budget bill into law, typically within a few days of the start of the new fiscal year on July 1.

Wisconsin ended its 2024 fiscal year with a more-than-expected $4.6 billion budget surplus. Republicans want to reduce the surplus by passing income tax cuts before the budget debate begins, while Democrats are urging more funding for things like K-12 education. 

We will be watching the battle over public education funding, which constitutes a third of the state’s general fund budget. Wisconsin held a record number of school referendums this year. Districts, public officials, local taxpayers and public school advocates are speaking out, calling for increases in state aid after approving $4.4 billion in property tax hikes so their local schools can continue to cover operating costs, as well as large projects. 

Both Republican and Democratic lawmakers have told Wisconsin Watch that voters aren’t happy about having to increase their own property taxes. But Republican lawmakers have stood their ground in support of private school vouchers and have criticized state Superintendent of Public Instruction Jill Underly’s $4 billion ask for public school funding in the upcoming budget. The state Supreme Court will decide whether an Evers veto in the previous budget that guaranteed $325 per pupil annual revenue limit increases for 400 years will stand, which could influence the debate. 

Another topic we’re monitoring is child care. A Wisconsin Department of Children and Families child care survey found last year that almost 60% of providers in Wisconsin have unused classroom capacity due to staff shortages. Providers report that if they were able to operate at full capacity, they could accept up to 33,000 more children. The state is losing hundreds of child care providers every year, according to DCF. 

In 2023, the powerful Joint Finance Committee, which will review and likely rewrite most of Evers’ budget proposal, voted to end funding for the Child Care Counts program — a pandemic-era subsidy program. 

Homelessness is also a growing problem all across Wisconsin, especially in rural areas. It can be largely attributed to rising housing costs following the pandemic and a lack of affordable housing units. Annual homeless counts conducted in January show that the state’s homeless population has increased every year since 2021.

Evers’ previous attempts to fund emergency shelter and housing grants, case management services and workforce housing grants in the state budget have been nixed by Republican lawmakers.

There are likely more battles coming over higher education funding after last year’s restrictions on diversity, equity and inclusion hiring. Wisconsin remains an outlier on Medicaid expansion, particularly postpartum coverage. Transportation funding continues to be a challenge as more fuel-efficient vehicles use a system built around the gas tax. Republicans have signaled opposition to the land stewardship program after the Supreme Court limited the finance committee’s power to block purchases. And the state prison system has been plagued by understaffing, inmate deaths, alleged corruption and a problematic juvenile facility.

That’s just a small taste of what’s coming in the budget this year.

Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.

Here’s what we’re watching for in this year’s Wisconsin budget debate 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.