Governor Tony Evers has introduced his 2025-27 biennial budget, proposing nearly $119 billion in spending over the next two years. The plan represents a significant 20% increase in expenditures and includes provisions that would expand government, raise taxes on high earners, and add more than 1,300 new state positions. Republican lawmakers, including Senator Steve Nass (R-Whitewater), have sharply criticized the proposal, warning of its long-term fiscal consequences.
Evers’ budget would take Wisconsin from a projected $4.3 billion structural surplus in June 2025 to a $1.6 billion structural deficit by June 2027. Additionally, financial projections indicate the state could face a cash deficit of $4.1 billion in the following budget cycle (2027-29). Nass did not mince words in his assessment, calling the plan a “fantasy budget” and warning that it would leave the state in financial distress.
Beyond spending levels, Evers’ proposal includes significant tax policy changes. He has called for a new top individual income tax bracket with a marginal rate of 9.8% on taxable income above $1 million for single filers and $500,000 for married filers filing separately. The current top tax rate stands at 7.65% and applies to much lower income thresholds—$315,310 for single filers and $420,420 for joint filers. This shift would mark one of the most substantial tax increases in recent Wisconsin history, prompting concerns that it could drive high earners and businesses out of the state. It would put Wisconsin up there with other high tax states like New York, New Jersey, and California. Evers, and many Democrats see targeting upper income earners and redistributing the revenue to welfare expansion, education as political popular. Many small businesses will be hit with the tax especially pass through business which account for the vast majority of businesses.
Evers is also prioritizing education funding, with a proposed $856 million increase for the University of Wisconsin System, $60 million for technical colleges, and a substantial $3.15 billion for K-12 education.
Republicans in the legislature are expected to reject much of Evers’ proposal, opting instead for a more fiscally conservative approach. Senator Nass emphasized that GOP lawmakers should focus on returning surplus funds to taxpayers rather than expanding government. With a Republican-controlled legislature, Evers’ budget faces an uphill battle, setting the stage for another contentious budget cycle in Wisconsin.
