A new report from the Wisconsin Policy Forum recaps the adopted 2023–25 state budget, highlighting the key issues that resulted in both compromise and conflict.
The budget provides a sizable funding boost to Wisconsin’s public schools, a key priority of Gov. Tony Evers — while also giving historic increases to charter and private voucher schools. The tax and spending plan also provides new resources for the state’s cash-strapped local governments, allowing for particularly large infusions for Wisconsin’s largest city, Milwaukee, as well as for many of its smallest communities.
It includes major funding increases for state payments and credits to lower local property taxes, yet it rejects many of the governor’s other funding priorities, such as expanding Medicaid, establishing permanent funding to support child care providers, or increasing support for the UW System. The plan also dropped major income tax cuts, which along with the spending rejections means the budget will retain ample reserves for policymakers moving forward.
Under the new budget, the state’s general fund balance would drop from an estimated $6.88 billion on June 30, 2023 to a projected $4.07 billion on that same date in 2025. The state would still retain an additional $1.8 billion in its rainy day fund, leaving it with nearly $5.9 billion in total reserves. That would amount to 25.5% of spending for fiscal year 2025, far above levels typically seen in both Wisconsin and other state governments in recent decades.
These vast reserves could help state leaders respond to unforeseen future events and positions the state favorably for the next two-year budget cycle. They also could be used to negotiate additional spending or tax cuts as part of the current budget. This provides elected officials with an unusual chance to address more of their priorities they felt were neglected in the newly enacted budget.
Some key findings relating to state spending, taxes, and related legislation in the budget can be found in the full report online.
