The Wisconsin Senate rejected a $1.8 billion tax relief and school funding package Thursday night in an 18-15 vote, stalling a bipartisan deal aimed at returning surplus dollars to taxpayers with three Republicans joining minority Democrats.
The Assembly earlier passed an amended version of the bill 61-32 on a bipartisan basis with ten Democrats voting in favor.
The package, negotiated earlier between Evers and Republican legislative leaders, used state surplus funds for direct rebate checks to taxpayers, property tax relief, increased school funding and elimination of state income taxes on tips and overtime pay. An amendment added to the package before the late-night debate would have directed an additional $21.4 million toward direct disaster grants for homeowners and businesses while expanding a property tax credit for veterans.
Gov. Tony Evers sharply criticized the failure, singling out Rep. Tom Tiffany and Democrats. Evers said they would “rather do what’s best for the next election than what’s right for the people of our state.”
Senate Minority Leader Sen. Dianne Hesselbein, who has bucked Gov. Evers calls to support the deal, called the proposal reckless.
“This is a completely reckless proposal stitched together in a backroom deal by three people who will not be running around when the consequences of a multi-billion dollar deficit come home to roost,” Hesselbein said during debate.
In the Assembly, debate featured pointed exchanges. Rep. Deb Andraca, described the bill as a “turducken” during floor remarks. “This proposal is a turducken, because it is a turkey, that was put together by a bunch of lame ducks by a Republican legislature that is too chicken to confront the structural affordability,” Andraca said.
Rep. Donovan offered a lighter moment amid the tension. “A lot of wishful thinking. I wish the bill including this, I wish the bill included that. We all wish a lot of things. Hell, Mr. Speaker, I wish rain water was beer!”
Senate Majority Leader Devin LeMahieu, issued a strong statement after the defeat. “Senate Democrats stood together to buck their own governor to deny working families tax relief and leave $2.5 billion sitting in a Madison bank account instead of helping schools perform special education services,” LeMahieu said.
“Voters now know exactly who Senate Democrats serve in Madison: themselves,” he added.
The rebuke came after all Senate Democrats and three Republicans voted against the amended bill.
Evers and Republican leaders had promoted the plan as a compromise to deliver immediate relief amid rising costs for working families. Opponents from both sides raised concerns over the package’s scope and long-term budget impact.
The vote caps weeks of negotiations over how to allocate Wisconsin’s budget surplus following years of strong revenue collections.
