Governor Tony Evers’ 2025-27 Budget: Key Proposals and Political Battles

Governor Tony Evers’ 2025-27 biennial budget proposal includes several notable new items that have already sparked political debate, particularly between the Democratic governor and the Republican-controlled legislature. Here are a few key proposals:

1. No Tax on Cash Tips
   Governor Evers has proposed eliminating income taxes on cash tips, a move supported by Republicans but not previously backed by Democrats. This would reduce state revenue by about $7 million annually, a modest amount compared to the state’s $11 billion in expected income tax collections. However, the tax exemption would apply only to cash tips, leaving out tips left on credit cards.

2. Free College Tuition for Native American Students
   Evers has recommended full tuition waivers for Wisconsin residents who are citizens of any of the state’s 11 federally recognized tribal nations and enrolled in the University of Wisconsin or Wisconsin Technical College System schools. This is part of a broader $129 million effort to improve affordability in higher education.

3. Auditing Health Insurance Companies
   Evers is proposing a first-of-its-kind program to audit health insurance companies in Wisconsin that frequently deny claims. This initiative would involve a new office to monitor high rates of claim denials and enforce corrective actions through fines or other measures. This plan would cost $500,000 in program revenue for staffing and operational costs over the next two years.

4. New Tax Bracket for Millionaires
   To increase state revenue, the governor has introduced a new tax bracket of 9.8% for individuals or married joint filers making over $1 million. The plan aims to raise an estimated $1.3 billion over two years. This would be a significant change from the current top rate of 7.65%.

As expected, Republicans have rejected several of Evers’ proposals, and many of these items are likely to face significant opposition as they move through the budget process. The budget debate is expected to be contentious, especially with proposals that could raise taxes or expand government programs.