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Beyond the finger-pointing, the real casualties of the failed surplus deal are Wisconsin kids

Republicans in the U.S. Senate are calling on the Trump administration to release billions in frozen school funding. (Photo by Getty Images)

Public school advocates were euphoric about the deal Gov. Tony Evers and Republican legislative leaders announced to boost special education funding and cut property taxes — until they read the details, and then the whole thing collapsed. (Getty Images)

“It really blew up our world,” public schools advocate Heather DuBois Bourenane says of the failed school funding and tax-cut deal that Republican legislative leaders and Gov. Tony Evers trumpeted as a “blockbuster” before it fizzled in the state Senate, ending in finger-pointing and recriminations. 

“It was the first time the carrot had been dangled so close to public schools,” DuBois Bourenane says, describing the “moment of utter euphoria” when her group, the Wisconsin Public Education Network, made up of parents, teachers and school officials from every corner of Wisconsin, first heard about the deal. “It seemed like what we’d been fighting so hard for for so long was finally about to happen.”

But then DuBois Bourenane and the other members of her organization got the details.

The funding for special education was not locked in at 50% in the second year of the plan as they’d hoped. Instead of a “sum-sufficient” or guaranteed allocation to cover a set percentage of costs, the 50% was an estimate. If costs go up, that percentage would go down. As for the $300 million increase in general aid to schools, as a Legislative Fiscal Bureau analysis explains: “the additional aid would provide property tax relief but not additional resources for school districts.”

Tax cuts made up the lion’s share of the deal — about 80% of the total $1.8 billion. Those included property tax cuts, interest earnings reductions, no tax on tips and overtime and, biggest of all, an $870 million income tax rebate that would have put $300 checks in the mail to people who earned enough money to qualify. The Legislative Fiscal Bureau projected that the deal would leave the state with a nearly $3 billion deficit. 

Most of that deficit would be caused not by school spending, but by what Dubois Bourenane describes as a wasteful tax giveaway. “What the heck?” she says. “You’re wasting the surplus while pretending to fix the thing [school funding] you broke the worst!”

School funding in Wisconsin was broken by former Republican Gov. Scott Walker’s historic budget cuts. The damage has compounded each year for more than a decade and a half as school budgets haven’t kept pace with inflation. In such dire circumstances there were, DuBois Bourenane acknowledges, public school advocates who felt anything was better than nothing. But the two-year stopgap deal Evers and Republican leaders reached did not come close to fixing the long-term problem. 

On the bright side, says Dubois Bourenane, at least politicians in both parties have stopped pretending the last several budgets actually funded schools sufficiently. The need to address the funding crisis in Wisconsin public schools has become a bipartisan talking point. Even Republican gubernatorial candidate Tom Tiffany (who, as a legislator, voted for former Walker’s massive cut to schools) lists it as a top priority.

A recent Marquette poll showed that 80% of Wisconsinites who were contacted about the rushed deal right after it failed, with little time for discussion or analysis, and asked if they would like to receive $300 in the mail from the state, said yes. But voters deserve a full, public discussion of their options, and whether tax rebates worth $278 to most individual Wisconsin tax filers and $574 to most married joint filers, according to the Legislative Fiscal Bureau, are worth putting the state in a $3 billion hole with no long-term fix for the school funding crisis. 

DuBois-Bourenane wishes the Legislature would take up a bill introduced in March that would guarantee a 60% special ed reimbursement from the state, easing the burden on local property taxpayers, who have been filling the hole by passing local referendum requests at record rates, raising their own taxes as the state reneges on its obligation to fund schools. 

But couldn’t committing the state to once again cover the real costs of public education put us in a deficit? Maybe, says DuBois Bournenane. “We’d have to cut money in other ways. But we would stop balancing the budget on the backs of children” — instead of acting as though the state can always avoid paying its biggest bill.

“There’s not really a surplus here,” she adds. “There’s just a pool of money that used to be used to fund public schools that now is not used at all.”

That’s the pool of money Walker “saved” by cutting funding for schools, and Evers and Republican leaders wanted to dole out over the next two years — 80% of it in the form of tax cuts and 20% to schools. 

She finds Evers’ public expressions of frustration with Democrats for not supporting his deal mystifying. “It seems to me it’s a predictable problem he could have solved in advance by consulting with his colleagues on the deal before moving forward.”

But most of all, for public schools, kids and communities across Wisconsin, the whole thing was “incredibly cruel,” she says.

“If we were being led by adults they’d laugh it off and get back to the table and get a new deal,” she says. Instead, the long-term problems threatening public education in Wisconsin continue, with no real fix in sight. 

“I know it doesn’t look like it from a distance, but it’s not about the money,” DuBois Bourenane says. “It’s about are the kids OK? Can we meet their needs?”

The answer, coming from districts that are facing steep cuts, growing class sizes, fewer extra curricular activities and school consolidations and closures, is no. The kids are not OK.

Compounding the damage is a looming crisis that was not part of the budget deal discussion at all. In 2026 all caps come off Wisconsin’s school voucher program. An unlimited number of families will be able to send their kids to private schools at taxpayer expense, and the funding for that program, under a law signed by Walker and supported by Tiffany, comes off the top of state funds. As school voucher programs have steadily grown in Wisconsin, most new students enrolled come from families that already had their kids in private school. The potential explosion in new families joining that group will put the current school funding crisis in a long shadow.

Still, DuBois Bourenane is optimistic Wisconsin can fix the problem. Her group is part of a lawsuit charging the state with failing its obligation to provide a “free, adequate public education” to all Wisconsin children. 

She believes the problem could be solved right now, and that “it’s irresponsible to walk away from the table” after the budget deal disaster. And that the pride and anger of the politicians who don’t want to keep trying is hurting Wisconsin kids.

But she also sees a huge opportunity for voters to put pressure on the politicians running for office this fall to change the attitude in the statehouse and “elect people with more energy to do things for our communities.”

“I don’t think all is lost. We will fix it in the long run. But we could fix it now,” she says. “And we’re choosing not to.”

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Gov. Evers’ ‘blockbuster’ gift to Republicans

Evers speaking in Assembly chambers with Vos behind him

Gov. Tony Evers delivers his 2019 State of the State address to a joint session of the State Legislature. Assembly Speaker Robin Vos, and Assembly Speaker Pro Tempore Tyler August look on | Tony Evers via Flickr

On his way out of office, Gov. Tony Evers has negotiated a school funding and tax cut bill with his fellow retirees, Senate Majority Leader Devin LeMahieu and Assembly Speaker Robin Vos. Call it a retirement celebration for three soon-to-be-ex politicians. Evers is promoting a big bump in school funding in the “blockbuster” deal and urging Democrats to vote for it. But the most joyful celebrants of this sudden windfall are Republican legislators, who have taken to calling it the “big, beautiful, bipartisan bill” —  a not-so-subtle echo of Trump’s triumphant name for the massive tax cut and spending bill he jammed through Congress.

Wisconsin Democrats are less than thrilled. On the Legislature’s Joint Finance Committee, the “blockbuster” proposal passed on a straight party-line vote, as Erik Gunn reports, with all of the Republicans on the committee voting in favor and all the Democrats voting against it. The bill is not so much a blockbuster as a budget-buster, said Joint Finance Democrats Deb Andraca (D-Whitefish Bay), Kelda Roys (D-Madison) and Tip McGuire (D-Kenosha). 

The problem with the legislation, according to its critics, is that it consists largely of one-time expenditures – including a temporary infusion of cash to schools and $300 checks to be mailed to Wisconsin state taxpayers — that will drain state coffers of about $2.9 billion after the whole package of proposals is paid out. While it effectively erases the state’s budget surplus, it won’t fix the structural problems with the way the state consistently underfunds schools and leaves property taxpayers to pick up the bill, or with the growing drain created by an expanding system of taxpayer-subsidized private schools, which will also get more money through this deal. Meanwhile, it creates the very real possibility that new legislative leaders and a new governor will be staring at a nearly $3 billion revenue hole when they begin to work on the next state budget, in an uncertain economic time.

The plan does include a burst of state funding for special education – sorely needed and, as Evers underscores, a big boost from current levels to a projected 50% reimbursement in the final year of the current budget cycle to school districts across the state. Evers’ office put out a comprehensive list of school districts and the millions in new money they will receive. The deal also allocates $350 million to bring down property taxes. And it eliminates taxes on tips and overtime, in keeping with Trump’s new federal policy. These are all popular proposals, and they provide a shot of relief to stressed and strapped school districts and taxpayers.

But advocacy organizations you would expect to embrace the governor’s move to increase funding for special ed have come out against the deal. 

“People with disabilities depend on programs and services that get state and federal funding,” Sydney Badeau, chair of the Wisconsin Board for People with Developmental Disabilities, said in a statement on the deal. “Spending down Wisconsin’s savings and reducing income when the state is already not providing enough funding to cover actual costs means there will be even less money next budget to pay for the programs people need. Less savings and less income means budget cuts next cycle at a time when many state programs, services, and infrastructure need more investment.”  

Kids Forward, the statewide antiracist policy center, also opposes the deal, saying it “relies on one-time money to paper over long-term challenges, all while legislators preparing to leave office pass the responsibility — and the blame — onto future lawmakers and families across Wisconsin.”

Meanwhile, Republicans are already turning the deal into campaign talking points on their most challenging issue – affordability

“Folks need help now,” declared Joint Finance Committee Co-Chair Rep. Mark Born (R-Beaver Dam), adding that inflation has been a problem “for at least five years,” a spin on voters’ cost-of-living worries that conveniently avoids the Trump administration’s responsibility for surging gas prices and massive healthcare cuts, which are dragging down state Republicans as they campaign this year.

Rep. Amanda Nedweski (R-Pleasant Prairie) touted the deal in a Tuesday press conference, saying Republicans have always been better stewards of the economy, and it was because of their wise leadership that Wisconsin built up a budget surplus in the first place (mostly by abandoning the state’s obligation to fund public schools). Now, she declared, it’s time to give all that money back to the taxpayers – “it’s their money” and rightfully belongs to individuals, she said, not “progressive politicians in Madison.” This is the drown-the-government-in-the-bathtub philosophy at work – defund schools and hand out checks to individuals. It works best if you are extremely wealthy and don’t mind trading in public education and other forms of public infrastructure for a pay-as-you-go system where you spend your own cash for private education, private health care and private security.  

Nedweski rolled directly into campaign mode, declaring that the benefits to taxpayers in the deal “would all be at risk” if the Democrats win control of the Legislature next year.

Without a doubt, Evers has handed Republicans a massive election-year gift.

Democrats, if they do manage to win legislative majorities – which has seemed more and more likely as Republicans flee the Capitol in droves, including some who represent key, swing districts — would be in a much stronger negotiating position than Evers is now. Instead of a one-time boost in school funding and a flurry of tax-rebate checks, they could recommit to guaranteed state funding for public education, as a lawsuit brought by students, parents and teachers argues they must under the state constitution. 

Now, as the national economy is in turmoil, they will confront the next budget cycle with a looming $2.9 billion hole – the budget surplus blown by a bunch of guys who are heading out of office and won’t have to worry about what comes next.

It was one thing for Evers to wrangle with Republicans and try to claw back funding for schools when the GOP-led Legislature was single-mindedly determined to block his every move. It’s a different matter to trade away the bulk of the state’s budget surplus now, in the waning days of his term, with everything up in the air.

The lack of communication between Evers and members of his own party has rankled Democrats for a long time. But the deal he is pushing to a reluctant Democratic caucus and delighted Republicans is a blow both politically and, more importantly, to the future health of the state. 

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