I am proud to be the ‘Education Governor,’ and I believe, as I have often said, that what’s best for our kids is what’s best for our state. So, this budget begins and ends where it always does for me – with education.
Years ago, a Republican-led, bipartisan commission on school funding recommended returning to two-thirds funding. I am proud that after providing several opportunities to meet this obligation during my time as governor, Republicans in the Legislature have decided to join me in restoring two-thirds funding for our schools, and we will finally be hitting that mark in the next biennium for the first time in two decades.
I am also glad that legislators joined me in doing what we can to pay our bills on time as today we eliminate a $75 million delayed general school aid payment for our public schools, something that was put in place beginning with the 1997-98 school year. This action will also improve our state’s general fund balance under Generally Accepted Accounting Principles (GAAP) by an equivalent amount.
This budget also provides roughly $685 million in additional net general and categorical school aids. I am proud that during my time as governor, we have worked to reverse the course of eight years of cuts and underfunding to education at every level. by investing in special education, school mental health, sparsity aid, and transportation costs.
At the end of the day, vetoing this budget in its entirety would have meant not only jeopardizing these investments but also likely causing our kids and our schools to lose $2.3 billion in federal funds when they need it the most. Moreover, leaving $2.3 billion up to the chance that Republicans – who took nearly 300 days to pass a second COVID-19 response bill during this pandemic – would come in and pass a meaningful budget in a timely fashion is not a risk I am willing to take for our kids or our schools.
This budget isn’t good enough for our kids, and Republicans could and should have done more. While they might be fine forcing Wisconsinites across the state to go to referenda just to support their public schools, I am not.
Two years ago, when I signed my first biennial budget, I used my broad veto authority to provide nearly $100 million more in per pupil aid. Of course, Republicans and their allies have worked since that time to prevent me from being able to use that same authority this time around.
Well, other people playing politics hasn’t stopped me from doing what’s best for our kids before, and it’s not going to stop me today.
This past year has been tough for all of us – but it’s been especially tough for students and their families, schools, and educators. Our schools and our students have faced unprecedented challenges during the coronavirus pandemic – from distance learning to reducing class sizes to spending money that had been budgeted for pencils on PPE. I have been working every day to find a way to get to yes for our kids and our schools because that’s what they deserve – elected officials who will do more than the bare minimum. That’s why today I’m announcing I’m investing more than $100 million in federal funds into our kids and our public schools. Schools in districts across our state will be able to use these funds to support kids in the classroom, hire educators and staff, provide additional educational or mental health supports, buy art supplies, or computers, keep the lights on – whatever they need.
Here’s the bottom line: this investment is a critical step in ensuring our kids, our state, and our economy can continue to recover, but I also want to be clear today: we must do everything we can to support our kids and our schools if we want our economic recovery to continue.
And we’re not just going to do everything we can to invest in our schools – when I said investing in our schools and cutting taxes are not mutually exclusive, I meant it. During the last biennium, I was proud to sign our last budget that, together with 2019 Wisconsin Act 10, provided an estimated $577 million in individual income tax relief through income tax rate reductions targeting lower and middle income earners. Then, the first bill I signed this biennium, 2021 Wisconsin Act 1, provided roughly $480 million in tax relief for Wisconsin businesses and families affected by the coronavirus pandemic. Even before this 2021-23 budget, I signed into law $2 billion in cumulative tax relief for Wisconsin families and businesses. When I ran for governor, I promised I would cut taxes for middle-class families by 10 percent. Today, I am keeping my word.
Today I am signing one of the largest tax cuts in Wisconsin state history. The bipartisan budget I signed today, along with prior reductions, not only delivers on my promise to cut taxes for middle-class families by 10 percent – I am cutting middle-class income taxes by 15 percent – and newly providing tax relief to more than 1.6 million Wisconsin taxpayers. When combined with prior reductions, 2.4 million filers will be receiving tax relief as a result of my actions.
This budget alone provides $2 billion in individual income tax relief over the biennium and approximately $1 billion annually going forward. Together with prior individual income tax rate reductions in the 2019-21 biennial budget and in 2019 Wisconsin Act 10, the median family of four will enjoy over $800 in annual tax relief beginning in tax year 2021, with approximately $550 of that coming from this budget. Combined, these reductions provide an approximate 15 percent reduction in individual income taxes compared to the rates in place in 2018 before I took office. This combined tax cut is the result of reducing the bottom two individual income tax bracket rates in the previous Legislative session with the budget's reduction to the third individual income tax bracket. The budget also provides additional targeted tax relief. This budget expands the exemption for income earned by Wisconsin servicemembers to cover all active-duty income, providing $20.2 million in annual tax relief. Further, beginning in tax year 2022, families claiming the federal child and dependent care tax credit will be able to claim 50 percent of that credit for Wisconsin purposes, providing $9.8 million in additional relief for families. Taken together with prior actions since 2019, Wisconsin individual income taxpayers will experience over $1.4 billion in annual tax relief beginning in tax year 2022. My action today ensures that our state continues to recover while also providing tax relief to folks across our state at a time when our economy and working families need it most.
Additionally, as was the case during the last budget, I am glad the Legislature joined me in supporting a number of other provisions and initiatives included in my Badger Bounceback Agenda.
I was proud to make significant investments to support the servicemembers who have served our state and our country and was glad to have the Legislature join me in this work by increasing funding for Veterans Service Office grants and providing $200,000 toward suicide awareness and prevention and mental health services, especially for veterans in underserved communities and areas. One legislative Republican called this “a really good budget for veterans.” I agree.
We are also continuing our work to fix our roads and invest in infrastructure across our state. While I am disappointed that the Legislature continues to reject increased, meaningful investments in support of mass transit and transportation alternatives, I am glad our budget will provide $100 million into improving local roads across our state, invests in our harbor and freight rail systems, and increases general transportation aids for our local communities in both years of the biennium.
Additionally, the coronavirus pandemic underscored and exacerbated the urgency with which we must work to expand access to reliable, affordable Internet. In 2021, high-speed Internet is no longer a luxury – it is a necessity – and it is a key part of supporting small businesses, increasing access to healthcare in our rural communities, and addressing the digital divide in our classrooms. I am disappointed that in the Year of Broadband Access, the Legislature failed to meet my nearly $200 million proposed investment into broadband – the largest state investment in state history, and nearly quadruple the investment of the last budget – and decided to use bonding for broadband investments, which will ultimately cost taxpayers more in the long-run. But I am proud my Badger Bounceback Agenda was able to push the Legislature to make increased investments in making high-speed Internet more accessible and includes $129 million in funding over the biennium to support the expansion of the Broadband Expansion Grant program.
The biggest problems with this budget are not the things in it which need to be removed with the stroke of a pen, but rather the work the Legislature left undone – whether it is investing in our kids and our schools, criminal justice reform measures, equity initiatives, or support for our state’s small businesses, there was much more that we could have accomplished together. Therefore, I am once again using my broad constitutional authority to rework this budget in order to bring it closer to the one I assembled for the people of our state.
My actions today will improve this document and leave resources available to ensure that this unfinished business can be addressed, including meaningfully investing in our kids and our schools. In addition, investments in healthcare, clean water, protection of our natural resources, and support for our small businesses and entrepreneurs are all critical to our continued economic recovery and to our state’s future.
The following is a short summary of how this budget, including my vetoes, will continue to build upon our foundation by putting us in position to do so going forward:
Healthy Communities
Increases Medicaid dental rates by 40 percent by providing an additional $46 million over the biennium.
Provides a 12 percent rate increase in fiscal year 2021-22 and another 12 percent in fiscal year 2022-23 for nursing homes.
Increases funding for direct care workforce serving individuals in the Family Care program by $104 million over the biennium.
Increases funding for Medicaid personal care rates by over $78 million over the biennium.
Provides an additional $104 million to hospitals who serve a disproportionate share of low-income individuals through Disproportionate Share Hospital payments.
Provides a 15 percent increase to the reimbursement rates for autism services for adaptive behavioral health treatment.
Increases funding for Community Health Centers and Free and Charitable Clinics by $2 million each over the biennium.
Provides $3.5 million over the biennium to fund 18 additional dementia care specialist and seven additional tribal dementia care specialist positions at Aging and Disability Resource Centers to ensure staffing in all 72 counties.
Provides an additional $750,000 over the biennium for crisis team training for law enforcement agencies.
Provides a 15 percent increase in reimbursement rates for outpatient mental health and substance use disorder services.
Provides a 20 percent increase in reimbursement rates for child and adolescent day treatment.
Provides a 5 percent increase in services received from opioid treatment providers.
Fully funds the Wisconsin Health Care Stability Plan to help reduce premiums paid by individuals who purchase insurance on the individual market.
Provides $250,000 annually to increase the maximum amount of funding provided under the Alzheimer's Family and Caregiver Support Program.Safe and Just Communities
Provides $1 million over the biennium to expand career and technical education opportunities at correctional facilities.
Provides $200,000 annually to expand the Windows to Work Program.
Provides an additional 7.4 assistant district attorney positions.
Expands the Treatment Alternatives and Diversion Program by $2.5 million in fiscal year 2022-23.
Provides $100,000 annually for a sexual assault victim services grant.
Provides $455,000 in fiscal year 2021-22 to purchase equipment for the State Crime Laboratories to test for synthetic drugs and drug analogs.
Provides $227,400 annually to purchase and maintain body-worn cameras for conservation wardens.
Provides $700,000 in fiscal year 2021-22 to purchase and maintain body-worn cameras for State Patrol troopers.
Provides $2 million for grants to law enforcement agencies to purchase body-worn cameras.What’s Best for Kids
Provides two-thirds funding to our schools for the first time in two decades.
Invests an additional $408 million in general school aids, building upon the $330 million increase in the last budget.
Provides $89 million over the biennium to increase reimbursement for students with disabilities in fiscal year 2022-23.
Invests an additional $19 million in school mental health programs.
Doubles state resources for gifted and talented students.
Fully funds high cost transportation aid and increases the number of districts eligible to receive it.
Increases the number of small, rural school districts eligible for sparsity aid.
Increases funding by $600,000 annually for the Housing Assistance Program to provide housing and support services to move more persons and families experiencing homelessness to independent living.
Ensures child care is more affordable and accessible for parents by providing over $46 million Temporary Assistance for Needy Families (TANF) in fiscal year 2021-22 and over $53 million TANF in fiscal year 2022-23 for a targeted rate increase to bring all maximum reimbursement rates in Wisconsin Shares within the 65th percentile of market rates.
Provides nearly $2.4 million TANF in fiscal year 2021-22 and over $4.8 million TANF in fiscal year 2022-23 to raise kinship care monthly rates from $254 to $300, consistent with the increase for foster care level 1 rates.
Increases funding to the Boys and Girls Clubs of America – Wisconsin Chapter by $132,000 TANF in each year to expand the Be GREAT: Graduate Program to two additional clubs in Wausau and Sheboygan to support Wisconsin’s youth in achieving academic success.
Provides $500,000 TANF in each fiscal year for Jobs for America’s Graduates – Wisconsin Program to provide educational support and job or post-secondary readiness for TANF-eligible youth.
Invests in juvenile justice youth aids to counties with an additional $4.7 million GPR in each year.
Invests an additional $1 million TANF in each year in child welfare safety services to reduce the number of children entering the out-of-home care system.
Supports permanency for some of Milwaukee’s most vulnerable children in out-of-home care by increasing funding for the Wendy’s Wonderful Kids Adoption Recruitment Program with $300,000 in fiscal year 2021-22.
Invests in quality care for children in the state’s child welfare system by providing a total of $577,800 in fiscal year 2022-23 for provider training and nursing services in Qualified Residential Treatment Programs as part of Wisconsin’s implementation of the federal Families First Prevention Act.
Provides $2.4 million in fiscal year 2021-22 and $5.2 million in fiscal year 2022-23 for the Department of Children and Families to make subsidized guardianship payments, which will allow counties currently making those payments to use Children and Family Aids on other important child welfare services.
Improves collection of delinquent child support in the state by providing over $5 million annually to local child support agencies. Higher Education and Workforce Development
Addresses the shortage of professors in nursing disciplines by providing $5 million in fiscal year 2021-22 for a new nurse educator fellowship and financial aid program administered by the Higher Educational Aids Board. This program also will help to increase the number of nursing professionals in the state, ultimately improving access to healthcare.
Helps protect the water quality of lakes and rivers by providing $5 million over the biennium to support the University of Wisconsin System’s Freshwater Collaborative, which trains water managers and scientists to address clean water and climate change challenges through a multidisciplinary approach.
Boosts the University of Wisconsin-Madison’s Division of Extension’s ability to conduct outreach and education by providing $2 million over the biennium.
Supports technical education by providing $2.25 million in each year to the Wisconsin Technical College System in general aid plus $2.25 million in each year for grants to district boards.
Achieves property tax relief across state technical college districts by providing $72 million over the biennium in property tax relief aid.
Enhances the ability of the Department of Workforce Development to provide employment services to individuals with disabilities.
Bolsters the skilled workforce of the future by increasing support for youth and adult apprenticeship programs.
Strengthens the Unemployment Insurance Trust Fund by providing $120 million over the biennium for the payment of unemployment benefits.Agriculture, Tourism and Economic Development
Provides $129 million in funding over the biennium to support the expansion of the Broadband Expansion Grant program, compared to $48 million during the 2019‑21 biennium. The $129 million is comprised of $125 million in general fund supported general obligation bonding, plus the statutorily required minimum of at least $2 million annually in funding from the state's universal service fund.
Creates a $200,000 annual meat processor grant program to help meat processing facilities expand and modernize.
Provides $558,400 annually for the Wisconsin Initiative for Agricultural Exports.
Continues $100,000 annually in funding for farmer mental health assistance.
Increases funding for producer-led watershed protection grant awards from $750,000 annually to $1 million annually.
Provides $7 million over the biennium for Soil and Water Resource Management Program.
Supports the Department of Tourism’s efforts to promote Wisconsin as a premier travel destination in new, targeted advertising markets by providing ongoing funding of $781,800 in each year of the biennium. Increasing the number of visitors to the state will bolster our local economies as they recover from the coronavirus pandemic.
Sustains funding and staff for the Office of Outdoor Recreation in the Department of Tourism, which will allow the office to continue to forge relationships among the outdoor industry’s stakeholders to strengthen our outdoor economy. Transportation
Provides a 2 percent increase for general transportation aids to counties in both 2022 and 2023.
Provides a 2 percent increase for general transportation aids to municipalities in both 2022 and 2023.
Provides a $250,000 annual increase for the Wisconsin Employment Transportation Program.
Provides $100 million for a one-time local road improvement program.
