A landmark $1.8 billion bipartisan agreement between Democratic Gov. Tony Evers and Republican legislative leaders on property tax relief, school funding, and direct rebates is going before the Legislature’s Joint Committee on Finance Tuesday.
The proposal, announced Monday after months of negotiations, taps into the state’s projected $2.5 billion surplus to deliver immediate and long-term relief to Wisconsin families grappling with rising costs. Key elements include roughly $350 million in targeted property tax relief, more than $600 million for K-12 education, direct rebate payments to taxpayers, and the elimination of state income taxes on cash tips and overtime pay.
Under the plan, the state would provide $300 million in general school aids designed to reduce school districts’ reliance on local property taxes for the 2026-27 school year. An additional $50 million would support the Wisconsin Technical College System as property tax relief. The agreement also includes the largest-ever increase in the state’s special education reimbursement rate, aiming to reach 50% by the end of fiscal 2027.
Working families would receive direct surplus refund payments totaling approximately $300 for individual filers and $600 for married couples filing jointly. The package further exempts tipped and overtime income from state taxes, rewarding service workers and those putting in extra hours.
Gov. Evers hailed the deal as a “blockbuster bipartisan” achievement.
“We’ve proven time and again that here in Wisconsin, we’re capable of finding common ground,” he said in a statement.
Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu emphasized returning surplus dollars to ease cost pressures and stabilize property taxes. Democrats, however, have expressed severe reservations. Senate Minority Leader Diane Hesselbein.
“From my perspective, there is no deal: Three men who will not be in elected office next year have come up with this proposal which Senate Dems will be reviewing,” she said in a statement. “Senate Democrats will have more to say once we have seen the full details of this expensive proposal and have gotten some clarifying information on revenue projections in this time of significant economic uncertainty and upheaval.”
