Legislative leadership have begun to react to Governor Evers proposal of a $1.3B package that pairs new aids for schools [both general aid and special education aid] and property tax relief [school levy tax credit]. You can view details of this proposal here. Senate Majority Leader Devin LeMahieu has publicly stated that the elimination of the 400-year veto must be part of any deal. Speaker Robin Vos has seemingly softened his tone on the 400-year veto, stating in a press conference yesterday that a deal with Governor Evers would hopefully be coming soon and that property tax relief was in his view more pressing than reforming the veto.
What these statements mean for the likelihood and final contents of a deal is unclear. However, it is possible we could see the Assembly and Governor coalesce around a framework soon. It is still unknown what level of support this deal would have in the Senate. Another development that has been revealed about these discussions is that moving special education aid to a sum sufficient funding model appears off the table for legislative leadership. According to WisPolitics, Evers originally proposed additional special education funding and moving this funding to a sum sufficient funding model. The move to a sum sufficient model was rejected by legislative leadership according to Governor Evers. In response, the governor’s latest proposal would still add an additional $200 million in special education funding but it would continue to be on a sum certain basis. This is a rapidly developing story and WASB will continue to update our members as more information is made available. Read the latest story from WisPolitics below.
WASB continues to advocate for using new higher tax revenues to fix the SPED shortfall from what was promised in the 2025-27 state budget. Click here to contact the governor and your legislators and urge them to ensure additional SPED funding to address the shortfall in reimbursement rates is a part of any deal. Honoring the 42 and 45% commitments from the recent state budget is crucial. With the Assembly planning to conclude its floor session work at the end of next week, time is running out for this deal to make it into law.
From WisPolitics: Gov. Tony Evers wants to put more money into schools in exchange for boosting a property tax credit and backing a GOP call to exempt cash tips as part of a $1.3 billion offer he sent Republican leaders, according to an email shared with WisPolitics.
The office of Devin LeMahieu, said the GOP Senate majority leader told the governor a repeal of his 400-year veto “is something the Senate Republican caucus would need to see in any deal surrounding property taxes.”
Evers’ office today shared with WisPolitics an email outlining a proposal sent to GOP leaders last week after Assembly Speaker Robin Vos, R-Rochester, said negotiations on a bipartisan bill continued. He added an announcement could come later this week.
The email shows Evers’ staff offered to sign one bill that includes the guv’s priorities of $200 million to increase reimbursements for special education and $450 million for general school aid, which would drive down how much districts can raise through property taxes to cover their costs.
In exchange, his staff offered support for putting $550 million into the school levy tax credit, which offsets some of what homeowners would otherwise pay in property taxes for schools. The offer also included $97.3 million toward exempting cash tips.
Evers’ legislative affairs director Zach Madden wrote in the email that an earlier proposal discussed with legislative leaders wouldn’t pass both houses of the Legislature, prompting Evers to offer what he viewed as a compromise. The email didn’t include details of that plan.
Vos had previously said a deal with Evers would hinge on a repeal of the guv’s partial veto allowing school districts to increase their per-pupil spending limit by $325 each year for the next 400 years.
Madden wrote in the email Evers had indicated he would be willing to discuss changes to the veto if GOP leaders would increase school funding, including for special education reimbursement. He also wanted to make special education aid a sum sufficient appropriation, but Madden wrote, “we understand from our conversation that neither of the two leaders would like to have discussions about the 400-year veto.”
In a statement to WisPolitics, Vos rejected that description of the discussion.
“The governor offered removing the 400-year veto in exchange for making it permanent in statute,” Vos said. “We are not interested in exchanging a 400-year property tax increase for a permanent one.”
Vos at a pre-session news conference today softened his past position on the guv’s veto from the 2023-25 budget being part of a deal.
“Certainly we want to see if we can have reforms in there, but the most important thing for us is to get relief. Some of the politics might have to wait until the election cycle,” Vos said today. The speaker said his caucus has been discussing the issue for weeks and had initially planned to announce a proposal last week. But they have instead been negotiating with Evers on a bipartisan deal that Vos hoped could make it through both the Assembly and Senate.
The speaker didn’t offer details on what the package could look like other than saying the goal would be to return a “sizable chunk” of the state’s projected $2.5 billion budget surplus to Wisconsinites to help address rising property taxes.
The governor’s office provided WisPolitics details of his compromise offer to GOP legislative leaders after Vos’ availability.
According to the email, GOP leaders had rejected Evers’ call to make reimbursing special education expenses sum sufficient.
The state budget included a nearly $505 million increase in special education through a sum certain appropriation. That means that the amount of money for special education aid is capped and districts will receive a prorated amount to reimburse their costs from that pot of money.
When the budget was signed, the Legislative Fiscal Bureau projected the boost in state money would result in a reimbursement rate of 42% in 2025-26 and 45% in 2026-27. But DPI notified districts in November that the interim proration rate for 2025-26 is 35% after costs in 2024-25 increased by 9% rather than the expected 4%.
According to Evers’ email, the $200 million he proposed for special education would take the state to a reimbursement rate of 42% in 2025-26 and 45% in 2026-27.
Evers spokesperson Britt Cudaback said the governor was waiting to hear back from GOP leaders on his latest offer.
“The governor’s been clear that any bipartisan bill on property taxes must include investments to ensure our K-12 schools receive the resources they need and were promised in the state budget,” she said.