Wisconsin surplus plan fails, stalls school funds

Wisconsin's bipartisan plan to spend $1.8 billion of the state's budget surplus collapsed Wednesday when the state Senate rejected it. All 15 Democratic senators joined three Republican senators in voting down the measure, which would have delivered $850 million in taxpayer rebates—$300 for singles and $600 for couples—along with $600 million for K-12 schools and property tax relief. The failure, reported by FOX 11 and the Wisconsin Governor's Office, stalls these funds as the new fiscal year looms.

The deal, announced Monday by Gov. Tony Evers, Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu, aimed to tap into a $4.6 billion surplus built since the 2025-27 budget. It promised the largest-ever boost to special education reimbursements, raising the rate from 35% to 50%, plus $300 million in general school aids, $350 million to cut school-related property taxes and elimination of income taxes on tips and overtime. The Wisconsin State Legislature's Joint Finance Committee had advanced it Tuesday, but Senate resistance—echoing earlier GOP walkouts over spending—doomed the effort.

For Milwaukee families, the rejection means no immediate relief from rising property taxes or grocery costs, hitting urban districts hardest amid school funding crunches. Milwaukee Public Schools, already strained, lose out on special education support critical for thousands of students, potentially forcing budget cuts or higher local levies.

Lawmakers now face unresolved surplus questions, with the 2023-25 budget at risk of carrying over past July 1. Evers criticized the vote as a betrayal of kids and workers, per his office, signaling tough negotiations ahead for the next biennial budget.