Wisconsin is projected to end the current budget cycle with a surplus of nearly $3 billion after tax collections came in higher than expected, and Republican budget leaders say that should put tax relief back on the table.
Joint Finance Committee co-chair Sen. Howard Marklein, R-Spring Green, said he was not surprised by the latest figures and remains disappointed the Legislature failed to pass a bipartisan relief package in May.
“I have been watching the revenue numbers each month and they were indicating we would have a larger surplus than originally thought,” Marklein said in a statement. “I remain disappointed that we did not pass the bipartisan agreement to return money to hardworking taxpayers, reduce property taxes, and help our schools. Our families and taxpayers could use the relief now.”
Preliminary calculations from the nonpartisan Legislative Fiscal Bureau show the state collected $23.1 billion in tax revenue in the 2025-26 fiscal year. That is a 3.4 percent increase from the previous year and 2 percent more than expected. The extra collections lift the previously projected $2.5 billion surplus by more than $450 million.
Joint Finance co-chair Rep. Mark Born, R-Beaver Dam, said the stronger numbers strengthen the case for putting taxpayers first. Born said he is ready to return to Madison if a new agreement can pass both houses.
“The Assembly acted in May, and I remain ready to come back to Madison and vote again,” Born said. “If we can reach an agreement that delivers meaningful tax relief for Wisconsin families and can pass both houses, I’m ready to get it done.”
Born said collections came in more than $450 million above estimates. He voted for the May package, which would have returned $1.8 billion to taxpayers, eliminated the state income tax on tips and overtime, provided rebate checks and property tax relief, and increased special education funding.
The May agreement passed the Assembly but died in the Senate when all 15 Democrats and three Republicans voted against it.
A May Marquette University Law School poll found 80 percent of Wisconsin adults said lawmakers should have passed the measure.
Gov. Tony Evers, who negotiated the original package with Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu, said Tuesday he has not heard from legislative leaders about revisiting the deal.
“I haven’t heard anything on it, so I’m guessing it’s not going to happen,” Evers said. “But if it does, you know, God bless us. But I’m not sure the politics are there to make it happen.”
