A bipartisan deal has been reached on putting more money into education and returning some of Wisconsin’s budget surplus to taxpayers.
The $1.8 billion agreement will be taken up by the Joint Finance Committee Tuesday, and the Senate and Assembly are expected to act as soon as Wednesday.
The agreement features $600 million for education, including a large increase in the state’s special education reimbursement rate.
$850 million would be returned to taxpayers in the form of rebates.
Another $50 million would go to property tax relief.
The agreement would also eliminate the income tax on cash tips and overtime for Wisconsin Taxpayers.
A news release from the Governor’s Office outlined the deal agreed upon by Gov. Tony Evers, Assembly Speaker Robin Vos, and Senate Majority Devin Leader LeMahieu.
- The agreement includes the largest increase to the state’s special education reimbursement rate in state history to attain 50 percent, investing over $600 million in Wisconsin’s K-12 schools, on top of the already historic nearly $1.4 billion provided in the 2025-27 Biennial Budget, including $300 million in property tax relief through general school aids.
- Provides an additional $50 million in property tax relief for Wisconsinites statewide in addition to the above over $300 million in general school aids.
- Eliminates the income tax on cash tips and overtime income for Wisconsin taxpayers.
- Returns over $850 million of the surplus to Wisconsinites, providing direct support to over 3 million Wisconsinites to respond to rising costs.
“We’ve proven time and again that, here in Wisconsin, we’re capable of finding common ground and working together to get good things done for the people of our state, and the bipartisan compromise we’re announcing today is yet another example,” said Gov. Evers. “I’ve always said that what’s best for our kids is what’s best for our state—it’s why it’s been important to me throughout this process that we make sure our kids and our schools have the resources they need while also lowering property taxes and giving working families a little breathing room in their household budgets.”
“Republicans have fought hard to control spending, and now we have a sizable budget surplus,” Speaker Vos said. “We’re sending it back to help families with the pressure of increasing costs, reward hard work, and to continue investing in schools to help stabilize rising property taxes.”
“Our top priority in this process was to return the state’s surplus to those who created it: hardworking taxpayers across the state. This deal will provide immediate relief with $600 in surplus refund payments and provide permanent property and income tax relief for Wisconsin families,” said Majority Leader LeMahieu.
Governor Tony Evers signed an executive order Monday clearing the way for legislative action on the package.
