Scholarship and reporting undermine governor’s key budget priorities How Gov. Evers Erred in His Biennial Budget Address The governor launched a wide array of new proposals on everything from taxes to education to criminal justice, and once again expressed interest in reversing key policy reforms from the past, including Act 10 and Wisconsin’s right-to-work law. The Badger Institute here links to research and analysis that shows why we believe his vision, in many cases, would undermine Wisconsinites’ hopes for true opportunity and prosperity. Education Freedom Gov. Evers proposed significant funding increases for traditional public schools while imposing a freeze on school choice enrollment. His budget would also maintain existing funding inequities for students in choice and charter schools. The story of Grace McCloskey underscores why educational choice and equitable funding are crucial to thousands of Wisconsin families. Gracie’s mom has a direct message for Gov. Evers and state legislators: Watch: ‘Make it about the children’ Lisa and Jack McCloskey of Watertown are ecstatic that their 14-year-old daughter, Grace, is enrolled in a public, independent charter school that is allowing her to flourish. Grace has Down syndrome and speech apraxia, and was traumatized by COVID restrictions in her previous school that left her isolated and confused. They say Lake Country Classical Academy in Oconomowoc was a “godsend.” Unfortunately, systemic funding inequities between types of schools remain. While students with special needs are eligible for state categorical aids and federal aid while attending either an independent charter or traditional public school, local and state funding for traditional public schools exceeds that of independent charter schools by thousands of dollars per student. These disparities add up, making it difficult for choice and charter schools to provide the same level of resources as traditional public schools. The McCloskeys have a message for Wisconsin lawmakers: “Make it about the children.” Watch the video Read: Family finds education freedom a ‘godsend’ Lisa and Jack McCloskey of Watertown know firsthand how critical it is for Wisconsin parents to have educational options. Their daughter, 14-year-old Grace, has Down syndrome and speech apraxia, requiring services they could not provide at home. Gracie enjoyed going to school her local public middle school – until the pandemic hit. She struggled with the shutdown and subsequent restrictive mandates imposed by the school. Fortunately, Lake Country Classical Academy in Oconomowoc – a public, independent charter school – opened at the time they were looking. While the school is in another community, it allowed them to place Gracie in an environment where she is now thriving. Unfortunately, there are still systemic funding inequities. Read more Tax Reform In his budget proposal, Gov. Evers limits who can receive tax cuts. His perspective is summed up by a comment he recently posted on Twitter. Tax relief, he wrote, should “not to give big breaks to millionaires and billionaires who don’t need the extra help to afford rising costs.” What the governor ignores is that Wisconsin has a progressive tax with a top marginal rate of 7.65% – among the highest in the country. And this rate doesn’t just hit “millionaires and billionaires.” It applies to approximately two-thirds of pass-through business income, affecting many of the 95% of Wisconsin’s small businesses that “pass through” their tax liability to be paid on their owners’ tax returns. Badger Institute President Mike Nichols explains why policymakers should consider a flat tax – like Michigan, Illinois, Iowa and 11 other states currently enjoy – and reduce the highest rate to foster economic growth and discourage the flight of residents and businesses from Wisconsin to other states. Right to Work The governor’s budget would repeal Wisconsin’s right-to-work law, which makes it illegal to require workers to join a union as a condition of employment. The Badger Institute was a leading champion of this worker freedom reform for years. Act 10 Gov. Evers appears to want to repeal Act 10, which saved state and local government and school districts (see: taxpayers) billions of dollars since its adoption in 2011. His budget includes a call for “collective bargaining for frontline workers of state and local governments.” In reality, these workers already have the right to collective bargaining; Act 10 just limited the scope of that bargaining. Badger Institute President Mike Nichols highlighted one of Act 10’s fiscal success in: Eleven Years Later, Act 10 Takes Down a Onetime Union Stronghold Prevailing Wage Gov. Evers’ budget proposal would restore the prevailing wage, effectively a minimum wage or wage and benefit package for workers employed on government construction projects. Prevailing wages drove up costs for public works projects, created layers of bureaucracy and fenced out contractors from the bidding process. Medicaid Expansion Gov. Evers, who has failed in the past to persuade the Legislature, is once again calling for Wisconsin to expand Medicaid. At the same time, the state will begin reviewing and presumably removing at least some of the 388,060 people who have been added to the rolls when the U.S. declared a health emergency beginning in March 2020. As we have consistently reported, Medicaid is an unaccountable federal program, rife with billions of dollars in questionable or fraudulent payments with no guarantees that the federal government will hold up its funding end, particularly at a time of rampant deficit spending and debt ceiling struggles. Freezing Enrollment Gov. Evers proposed freezing enrollment in Wisconsin’s parental school choice program at next year’s level — which would choke off the fastest-growing sector of K-12 education in the state. Parents have flocked to it, with annual growth of about 6% to 10% in the past five years, even as the number of schoolchildren statewide has fallen. Evers also proposed stifling choice in his first biennial budget. In our Mandate for Madison, we explain the underlying trends and the fiscal imbalances that unnecessarily threaten choice’s sustainability. In our Choice Stories videos, we center the experiences of parents and students who have benefited from choice. Minimum Wage The governor proposed increasing the minimum wage from $8.25 per hour to $9.25 per hour in 2025 and to $10.25 in 2026, with the goal of getting to $15 per hour. In our Mandate for Madison, Ken Wysocky explains why minimum wage requirements hurt workers, especially those on the lower rung of the economic ladder: Increasing Minimum Wage Simply Doesn’t Help. Free Lunch Gov. Evers requested $120.2 million in fiscal year 2024-25 to provide all Wisconsin children with free breakfasts and lunches at school regardless of need. President Mike Nichols addressed this flawed and costly mindset in a 2011 report, Yes, There is a Free Lunch. Pandemic Spending The governor is asking for $500 million to stem a “burgeoning crisis” in mental health, $319 million to make Child Care Counts a permanent program, $100 million for a Workforce Innovation Grants program and several others that have one thing in common: their creation and existence due to federal pandemic funding. The state and our local governments are sitting on billions of unspent COVID funds and, as we’ve reported, has a track record for failing to account for what it has spent money on. Why, we asked recently, does the governor want $500 million in state taxpayer money for a health crisis, when the state spent only $113 million of federal money last year on the very health crisis the funding was approved by Congress in the first place? New Hiring Gov. Evers’ budget includes more than 800 new full-time state government positions, including 80 new positions in the Department of Safety and Professional Services, which processes occupational licenses. The governor contends these positions would address a significant backlog in the application process. Republicans last week initiated an audit of the department. Michael Jahr provides an analysis of the debate. Republicans approve audit to address state licensing delays More Prosecutors The budget proposal includes funding for more than 50 additional assistant district attorneys. As the Badger Institute has reported, public safety in Wisconsin has suffered due to a shortage in both prosecutors and public defenders. In our Mandate for Madison, policy analyst Jeremiah Mosteller addressed this in a report titled Toward Swifter Justice. Transportation Funding The governor proposes buying down nearly $380 million of the transportation fund’s debt. While paying off debt is good, not accruing it in the first place is even better. In the Mandate for Madison, two Badger Institute visiting fellows explain How to Future-proof Wisconsin’s Highway Funding. Child Care Gov. Evers requested $81 million in general purpose revenue in fiscal year 2023-24 and another $221 million in fiscal year 2024-25 for child care. He also proposed directing $19 million in federal funding toward child care in each fiscal year. In Off Track: An Assessment of Wisconsin’s Early Care and Learning System for Young Children, Badger Institute Visiting Fellow Angela Rachidi offers recommendations for improving the state’s role in child care by giving more authority to parents and childcare providers. Free Exchange Podcast Schoolhouse Rock: How a Budget Becomes Law in Wisconsin Did you know that Wisconsin has a biennium budget? Or that a powerful joint committee makes most of the budget decisions in the Legislature? Or how a projected $7.1B budget surplus might factor in? Rep. Mark Born (R-Beaver Dam) and Rep. Evan Goyke (D-Milwaukee), both members of the Joint Finance Committee, join Badger Institute VP Michael Jahr for a Schoolhouse Rock look at how a budget becomes law in Wisconsin. Listen to the podcast Badger in the News WI Morning News: Patrick McIlheran joins Meg Ellefson to discuss educational opportunity and the making of responsible young men Your Talk Show: Mark Lisheron joins Tim Bremel to discuss the lack of transparency in emergency aid spending (Segment begins at 25:30) Weekly Survey: Do you believe Gov. Evers’ budget will make Wisconsin more economically competitive? Answer below! Yes No Previous Poll Results What We’re Reading Wisconsin State Journal: UW has some work to do encouraging free speech Western Carolina University: Increased School Choice May Improve Student Mental Health Invest in the Badger Institute The Badger Institute, formerly known as the Wisconsin Policy Research Institute (WPRI), has long been at the forefront of the fight for school choice, right to work, welfare reform, tax restructuring, limited government, civil society and so much more. If you appreciate the Institute’s legacy and want to support free markets, opportunity and prosperity, please consider donating today. Your support will help the Institute continue to advocate for conservative principles now and in generations to come. The Institute never has, and never will, accept government funding. We gratefully welcome your online donation or email Angela Smith, Executive Vice President. 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