This week, Wisconsin Senate Democrats rejected a $1.8 billion surplus package that would’ve provided money to schools and a rebate for taxpayers.
The bill, that passed the state assembly, would take $1.8 billion from the state’s $4.6 billion budget surplus. The bill distributed about $600 million back to schools, with $300 million going to general school expenses and the other half toward special education reimbursements for districts.
According to State Representative Willian Penterman (R-Hutisford), the bill contains three major components to give back to taxpayers and schools. The total rebate to schools and tax payers would’ve totaled around $1.2 billion.
The first package is direct surplus payments. This means that full-time Wisconsin residents who filed a 2024 state income tax return will receive up to a $300 rebate, while married couples filing jointly receive up to $600. Second is a Property Tax Relief package. This plan provides more than $300 million in property tax relief to school districts statewide through the school funding formula. An additional $50 million in relief will come through reduced technical college debt levies. Finally, there is an Income Tax Relief package. The bill eliminates the state income tax on tipped income and overtime wages, providing more than $230 million in permanent tax relief for Wisconsin workers. If passed, Wisconsin’s tax relief would not expire in 2028.
Governor Tony Evers was excited to finally see this deal done in a bipartisan, efficient fashion. “I want to thank Speaker Vos and Majority Leader LeMahieu for their leadership and willingness to work across the aisle over the last several months. This is a blockbuster deal for Wisconsin, and I’m grateful for the bipartisan partnership that got us to today.” said Evers when the bill passed the assembly. (RELATED: Wisconsin Republicans Endorse Candidates at 2026 State Convention)
However, Senate Democrats voted down the bill because Senate Democratic Leader Hesselbien felt the bill was a “fiscally unsound, reckless, and irresponsible” bill. Despite their vote, Evers and LeMaiheu showed disapproval.
“So many Wisconsinites feel left behind, frustrated and disillusioned by politics these days because they think a lot of politicians in the Capitol are only here to serve themselves. And, today, they’re right,” Evers said in a statement. LeMaiheu added in his own statement, “Voters now know exactly who Senate Democrats serve in Madison: themselves.”
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