Wisconsin Senate approves speedy budget to aid hospitals

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    In a significant bipartisan move, the Wisconsin Senate has passed a compromise state budget as lawmakers race to avoid potential financial repercussions resulting from upcoming federal law changes. The urgency behind the vote is due to potential legislation that could see Wisconsin hospitals facing a $1.5 billion shortfall. Following the Senate’s approval on Wednesday, the Republican-controlled Assembly was also expected to pass the budget later the same night, sending the $111 billion proposal to Governor Tony Evers for a swift signature.

    The two-year spending plan, anticipated to impact residents across Wisconsin, includes a cut in income taxes by $1.4 billion for both working individuals and retirees. Additionally, it proposes the abolition of sales taxes on residential electric bills, while imposing increased costs for obtaining driver’s licenses, purchasing license plates, and vehicle titling. With tight deadlines, lawmakers have been pushed to act quickly, a sentiment echoed through unprecedented same-day votes in both legislative houses—an event not seen in at least five decades.

    Republican Assembly Speaker Robin Vos plainly articulated the necessity of the expedited passage, stressing the importance of securing federal funding. The budget seeks to heighten Wisconsin’s hospital assessment rate from 1.8% to 6%, the federal cap, in pursuit of additional Medicaid program and hospital provider payments. The rapid enactment is crucial as federal legislation currently pending could freeze such rate adjustments, threatening funds, especially for rural hospitals.

    The bipartisan compromise reached incorporated several concessions to Governor Evers, a Democrat. These include increased allocations for special education in K-12 schools, subsidization of childcare costs, and significant new funding for the Universities of Wisconsin, marking the largest expansion in nearly 20 years. Despite these inclusions, some concerns linger, primarily regarding potential rises in property taxes across various school districts due to stagnant general aid increases.

    Among other notable provisions, the budget includes plans to shutter an aging prison facility in Green Bay by 2029, though it stops short of the comprehensive prison reform Governor Evers had proposed. Evers has expressed intent to refrain from vetoing any components of the budget reached in agreement with Republicans, leveraging his extensive partial veto powers to maintain the consensus.

    Governor Evers, at the midpoint of his second term, has indicated that his decision regarding a potential third term will follow the signing of the budget. He is allocated ten working days to enact the budget following its legislative approval.

    The Senate’s passage saw a 19-14 vote, featuring support from five Democrats and 14 Republicans, while four Republicans aligned with 10 Democrats in opposition. Democratic senators were strategically engaged in the final stages of negotiation to ensure adequate support, establishing the budget as a true bipartisan effort. Senate Minority Leader Dianne Hesselbein remarked on this shared outcome, noting that while not everyone received their ideal outcomes, the collaborative agreement marked a commendable milestone.

    Recent changes in legislative districting have played a pivotal role in fostering increased negotiation and compromise this year. Democratic gains during the November elections, a result of the newly mapped districts, have contributed to narrowing Republican majorities, with Democratic Sen. Mark Spreitzer reflecting on the leverage gained through these shifts. However, Spreitzer did voice concerns about unmet priorities, particularly in areas such as childcare, K-12 education, and higher education funding.

    Ultimately, Republican Senator Patrick Testin, a key budget committee member, acknowledged the compromised nature of the budget, underscoring the inherent challenges posed by a divided government.