Relating to: an income tax subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus refund payments; increasing funding for special education and school age parents programs; state aid to technical colleges and the technical college district revenue limit; and making an appropriation. (FE)

Wisconsin Senate Republicans tabled a $1.8 billion bipartisan deal on school funding and tax cuts Wednesday, halting a plan negotiated by Gov. Tony Evers and GOP leaders. The agreement would have tapped the state's $4.6 billion surplus to send $600 million to K-12 schools—including $300 million for special education reimbursements, raising the rate to a historic 50%—and deliver $850 million in tax refunds, with $300 checks for individuals and $600 for couples filing jointly. It also proposed exempting tips and overtime from state income taxes and adding $350 million in property tax relief.

The deal emerged from months of talks amid a projected surplus once estimated at $2.5 billion, now adjusted downward by new revenue forecasts from Evers' administration. Evers hailed it as a "historic day" for kids and families, while Senate Majority Leader Devin LeMahieu emphasized returning money to taxpayers. Local districts like those in Brown County had praised the school aid boost, projecting hundreds of thousands in extra budget support to avert cuts, according to WLUK reporting.

For Milwaukee residents, the tabling means uncertainty for overburdened schools facing rising costs and property taxes that hit families hard. Milwaukee Public Schools, already reliant on referendums for basics, could miss out on critical special education funding amid ongoing budget strains. Taxpayers lose immediate rebates and relief on tips and overtime, squeezing household budgets in a high-cost city.

The Joint Finance Committee had been set to review the plan, but with the Senate's move, lawmakers must now renegotiate or scrap it before the session ends, leaving the surplus's fate in limbo.