Wisconsin taxpayers deserve a government that lives within its means, funds core priorities responsibly, and returns excess revenue to the hardworking people who earned it in the first place. The recent agreement between Governor Tony Evers and Republican legislative leaders proves an important truth: when Republican majorities lead the Legislature, Wisconsin families see real results.
For years, Republicans have fought for a balanced approach that supports students, funds classrooms, invests in special education, and still reduces the tax burden on Wisconsin families. This agreement proves those goals are not mutually exclusive. Wisconsin is adequately funding schools, providing additional support for special education reimbursement, and delivering meaningful property tax relief to homeowners, seniors, farmers, and small businesses across our state.
That is possible because Wisconsin taxpayers, not government, created a significant budget surplus through hard work, economic growth, and responsible fiscal management. Republicans held the line on spending during the last bipartisan budget, helping Wisconsin build a $1.8 billion surplus that is now being returned directly to taxpayers. Those dollars do not belong to Madison politicians. They belong to the people who overpaid into the system. Returning surplus revenue to taxpayers is not a giveaway. It is simply giving Wisconsinites their own money back.
Under this agreement, more than $862 million will be refunded directly to taxpayers. Full-time Wisconsin residents who filed a 2024 income tax return will receive a $300 rebate, while married couples filing jointly will receive up to $600. In addition, more than $300 million in property tax relief will be delivered to every school district in Wisconsin through the school funding formula, including districts that traditionally receive little or no equalization aid. Another $50 million in property tax relief will come through Wisconsin’s technical college system by reducing the amount of debt colleges are allowed to levy on property taxpayers.
Republican lawmakers have consistently maintained that lower taxes help grow the economy, encourage investment, and create the long-term revenue needed to fund state priorities. Wisconsin has seen this firsthand. Over the past decade, conservative fiscal policies helped stabilize state finances, build reserves, and create the conditions for sustained economic growth. Lower tax burdens leave more money in the pockets of workers, families, retirees, farmers, and employers, and that economic activity strengthens state revenues.
That is why Republicans were proud to secure permanent “No Tax on Tips” and “No Tax on Overtime” relief for Wisconsin workers, building on the federal tax relief efforts achieved by President Trump and Republicans in Congress. After Governor Evers previously vetoed similar legislation, Republican majorities stayed at the table and kept fighting for the people who work long hours, pick up extra shifts, and keep our communities running. This agreement provides more than $230 million in ongoing tax relief for tipped workers and employees earning overtime wages, and unlike the federal law, Wisconsin’s tax relief does not expire in 2028. It is permanent.
Eliminating state taxes on tips and overtime is about fairness. Service industry workers, nurses, police officers, firefighters, factory workers, truck drivers, and countless others who sacrifice evenings, weekends, and holidays to earn extra income should be able to keep more of what they earn. At a time when inflation and rising costs continue to pressure household budgets, reducing taxes on work is one of the clearest ways government can help working families.
Republicans have also shown that tax relief and educational investment can happen at the same time. Despite years of claims that tax reductions would devastate schools, Wisconsin continues to fund education at historic levels while maintaining strong reserves and returning money to taxpayers. This agreement includes the largest increase in special education reimbursement rates in Wisconsin history, increasing reimbursement to 42% in year one, 45% in year two, and ultimately to 50% in 2026-27 through additional investments of $85 million and $230 million respectively. That reimbursement rate has now doubled since 2019. Additional funding is also being directed toward students participating in choice, charter, special needs scholarship, and open enrollment programs.
Wisconsin families are tired of political games. They want safe communities, strong schools, affordable living costs, and confidence that their government respects the value of every dollar they send to Madison.
Republican majorities in the Legislature have repeatedly shown that conservative fiscal stewardship works. By controlling spending, prioritizing taxpayers, and encouraging economic growth, Wisconsin can continue moving forward while funding the priorities that matter most.
At the end of the day, this is about making Wisconsin a place where families can afford to stay, businesses can afford to grow, and workers can keep more of what they earn. That is not a partisan idea. That is Wisconsin common sense.
