MADISON, Wis. — On Tuesday, Wisconsin’s Democratic Governor Tony Evers unveiled a proposal that aims to reduce taxes by approximately $2 billion, aligning with a key objective of Republicans. In addition, he presented a strategy to address water pollution and counteract tariffs imposed by former President Donald Trump.
Evers intends to share his two-year budget plan with the Republican-controlled Legislature later in the evening. It’s expected that Republicans will significantly revise the proposal, as they have done with his previous three budgets, before finalizing it for approval later this year.
Among the main points in Evers’ budget, which he previewed prior to addressing the Legislature, is his effort to incorporate tax reductions prioritized by Republicans. The governor has previously had contentious relations with GOP lawmakers over tax cuts, having cut a $3.5 billion tax reduction in the last budget while endorsing a $2 billion tax cut in 2021. For his upcoming budget, Evers is advocating for tax reductions that would utilize about half of the state’s $4 billion budget surplus.
Republican leaders expressed their desire to allocate the entirety of the surplus towards tax reduction. Evers’ proposal includes eliminating income tax on gratuities and establishing a new incentive aimed at local governments to refrain from elevating property taxes. He mentioned that municipalities that comply with this agreement would receive financial support from the state.
Although details on the specific tax cuts were not disclosed before Evers’ address, he indicated that the plan would also lower income taxes for the middle class and remove sales tax from various routine expenses.
In addressing agriculture, Evers remarked on the risks posed by Trump’s tariffs to Wisconsin’s significant agriculture sector valued at $116 billion. With the imposition of 10% tariffs on imports from China and the uncertainty surrounding additional 25% tariffs on goods from Canada and Mexico, Evers has proposed the establishment of a new agricultural economist role within the state government. This position would assist farmers in navigating the challenges stemming from tariffs and enhance funding to help them discover new markets for their products.
However, Republicans have voiced opposition to the creation or expansion of state government services amidst the discussion of tariffs. Evers’ disagreements with Trump’s policies extend beyond tariffs; he has also previously advocated for a bipartisan approach to immigration reform while criticizing efforts aimed at deporting undocumented individuals.
Turning to environmental issues, Evers highlighted the ongoing struggle with PFAS pollution, which has contaminated various Wisconsin communities, forcing residents to rely on bottled water. He is advocating for $145 million in funding to support additional testing for such pollution and research into solutions.
Earlier this month, Evers instructed the state Department of Natural Resources to establish new restrictions regarding PFAS in groundwater, building on previous efforts that had stalled due to high costs. PFAS—chemicals that are resistant to breaking down in the environment—are associated with various health risks, including low birth weights, cancers, and issues that diminish vaccine efficacy.
Additionally, Evers is proposing an investment of over $300 million to address lead poisoning in drinking water systems, which includes service lines, schools, childcare facilities, and other public places.