Bill spends most of state’s temporary $2.3B surplus on bad tax policy, unfair K-12 school funding system
MADISON, Wis. – Wisconsin’s legislature met today to consider LRB-6707/1, a bill that spends most of Wisconsin’s $2.3 billion budget surplus on tax rebates for higher income households, creates a new, less fair K-12 school funding system, and permanently eliminates important sources of state revenue.
Assembly Democrats have had just a few days to analyze and debate LRB-6707/1, with Governor Tony Evers and Republican leadership only providing details shortly before announcing today’s special session. Legislative Fiscal Bureau analyses demonstrate that the plan will create a lasting, multi-billion dollar deficit unless Wisconsin’s economy enjoys a sudden, unlikely economic boom. It’s unclear how this legislation makes that boom more likely, given the state’s continuing and escalating affordability crisis.
Rep. Darrin Madison (D-10) released the following statement:
“We have a growing list of urgent problems to solve in Wisconsin’s legislature. This bill offers inadequate, short term relief while deepening the problems this legislature must solve next session. The opposition to this bill is bipartisan, and backed by our communities. The vote is a clear no.
I understand the urgent call for tax relief, but we have a responsibility to do it right, while prioritizing those most in need. The fiscal analysis, however, paints a grim picture: low income households will get little help under this plan, while risking a catastrophic hit to our budget and economy. The many seniors in my district who primarily depend on Social Security and other public benefits will likely get nothing.
Governor Evers’ wants to address criticisms of his ‘400 year veto,’ an act that provided school districts with more financial flexibility without permanently raising property taxes. But this bill shrinks the pool of resources our K-12 schools can draw while providing, at best, very temporary funding relief – and even then, it ignores the existing parts of our school funding formulas that equalize our inherently unfair property tax system. Instead, new funding will go to the wealthiest, by design.
The only reason to move this quickly is to avoid scrutiny. Let’s slow down, then work democratically and transparently to craft real, sustainable solutions to Wisconsin’s very solvable problems – I’m proud to co-author one such solution, AB 1176, along with Rep. Christian Phelps, Rep. Angelina Cruz, and all my Democratic colleagues. This bill is a poor, rushed substitute, at best.
