Wisconsin’s Democratic Governor Tony Evers unveiled a proposal on Tuesday to decrease taxes by nearly $2 billion, aligning with a key priority of the state’s Republican leaders. Simultaneously, he laid out an initiative aimed at tackling water pollution and addressing concerns regarding tariffs imposed by the Trump administration.
Evers is set to present his two-year budget proposal to the Republican-majority Legislature later in the day. Historically, Republicans have significantly revised his budget proposals in the past, a trend anticipated to continue with this latest plan.
Key aspects of Evers’ budget, highlighted in excerpts released prior to his address, reflect intentions to engage with Republican interests, particularly the emphasis on tax reduction.
In past confrontations with Republican legislators, Evers has seen substantial changes to his tax-related proposals, including the removal of a $3.5 billion tax cut in his previous budget while approving a $2 billion cut in 2021. This new budget proposes nearly $2 billion in tax cuts, which would utilize about half of the state’s current budget surplus, estimated at roughly $4 billion.
Republicans have expressed a desire to allocate the entire surplus toward tax reductions. Among Evers’ suggestions is the elimination of income tax on gratuities and the introduction of incentives for local governments to refrain from raising property tax rates. Evers indicated that local governments opting out of property tax increases would receive state payments. Though specifics of the tax initiative were not disclosed, Evers mentioned that the plan would involve reducing income taxes for middle-income residents and removing sales taxes on various essential expenditures.
Addressing the implications of Trump’s tariffs, Evers asserted that such import taxes could instigate trade disputes with Wisconsin’s primary exporters and adversely affect the state’s significant $116 billion agricultural sector. With the establishment of a 10% tariff on China and potential 25% tariffs on goods from Canada and Mexico, Evers’ plan aims to create a new role of agriculture economist within the state government, intended to assist farmers in navigating market upheavals related to these tariffs. Additionally, there are proposals for boosting funding initiatives to aid farmers in expanding their product markets. However, Republicans have signaled their intent to resist any attempts to create or expand state government programs.
The issue of tariffs is not the only area of contention for Evers against the Trump administration; he has previously advocated for bipartisan immigration solutions while opposing Trump’s deportation policies.
When it comes to environmental concerns, Evers has frequently clashed with Republican lawmakers regarding strategies to combat PFAS pollution, which has left many Wisconsin communities dealing with contamination issues. Evers is proposing a budget allocation of $145 million for enhanced testing and research efforts to address this pollution. Earlier in the month, he instructed the state Department of Natural Resources to prepare regulations concerning PFAS levels in groundwater, a previous effort that was ultimately deemed financially unfeasible by agency officials last December.
PFAS (per- and polyfluoroalkyl substances) are synthetic chemicals notorious for their persistence in the environment and potential health risks including low birth weights, cancer, and liver disease; they have also been linked to diminished vaccine efficacy.
Additionally, Evers is advocating for more than $300 million to mitigate lead poisoning risks in drinking water sources, including service lines, fountains, schools, and childcare facilities.
