Lawmakers advance $1.8 billion surplus deal, even as candidates for governor criticize 'backroom' agreement
MADISON, Wis. (CBS 58) -- Lawmakers on Wisconsin's powerful budget committee on Tuesday approved a $1.8 billion school funding and tax relief plan. The party-line vote advanced a bipartisan agreement, which was brokered over the past couple months by Democratic Governor Tony Evers and leaders in the GOP-controlled Legislature.
The Joint Finance Committee took up the package, which uses much of the state's surplus but not all of it. Wisconsin currently has a projected surplus of about $2.5 billion.
Republican lawmakers defended the compromise deal in different parts of the state while the GOP candidate for governor and nearly all Democratic gubernatorial candidates criticized the agreement.
The agreement puts a little more than $600 million into K-12 education, with a little more than half of that amount boosting the special education reimbursement amounts for schools.
The remaining $300 million for K-12 schools will go into the state's complex general aid formula, which will also act as a property tax cut with the state now picking up more of the funding slack. Another $50 million will provide property tax relief through the state's technical college system.
The plan also provides about $850 million worth of tax rebate checks and eliminates the state income tax on tips and overtime wages.
Crowded governor's race, crowded criticism
Of the eight Democratic candidates in a crowded primary field, only former Wisconsin Economic Development Corporation CEO Missy Hughes expressed support for the compromise agreement without also offering criticism.
"Today’s deal offers immediate help on school funding and tax relief," Hughes said Monday. "And is a strong reminder that our next governor must have the expertise and track record to grow our economy for all Wisconsinites over the long haul."
Other Democratic candidates slammed all or some of the agreement. Lt. Gov. Sara Rodriguez and Milwaukee County Executive David Crowley praised the additional school funding but added more could be done if Democrats win control of the Legislature.
"Governor Evers deserves credit for finding the common ground to make this possible," Crowley said Monday. "But a one-year property tax break is not a long-term affordability plan."
Rodriguez was in Milwaukee for the grand opening of a new LGBT resource center, but she left without taking questions from reporters.
"The deal between Governor Evers and Republican legislators is a compromise that’s far from perfect," Rodriguez said in a statement Tuesday. "And it’s a reminder of how much better off Wisconsin would be with Democratic majorities in the state legislature."
Barnes also acknowledged Evers' need to compromise with Republicans in control of the Legislature but also maintained the agreement doesn't do enough.
"This deal delivers meaningful dollars for our schools and special ed programs," Barnes said. "But this agreement does not fix the broken system that’s failing Wisconsin."
Democratic candidates in in the Legislature offered harsher assessments. State Sen. Kelda Roys (D-Madison), who serves on the Joint Finance Committee, voted no Tuesday.
“This surplus is projected," Roys said. "It’s not money that’s sitting in the state's checking account; it is money that our good friends at [the Legislative Fiscal Bureau] in their best judgement has estimated will be available.”
State Rep. Francesca Hong (D-Madison) said she will vote no on the plan when the Assembly takes it up, which is expected to happen Wednesday.
"This backroom deal is a payday loan taken out at the expense of our children, our infrastructure, our economy, and our future," Hong said.
Former Department of Administration Secretary Joel Brennan also criticized what he considered to be a private negotiation between Evers and GOP leaders.
The Republican candidate for governor, Congressman Tom Tiffany, also slammed the agreement. He first shared his opposition to the compromise during an interview with a conservative talk radio host Tuesday morning.
“This backroom 'relief deal' does nothing to repeal Governor Evers’ 400-year property tax increase," Tiffany said. "It does nothing to stop Madison’s addiction to taxing and spending."
GOP lawmakers defend deal
At a press conference in Oak Creek, several GOP Assembly members touted the agreement, specifically the tax relief measures.
When asked about Tiffany's criticism, State Rep. Adam Neylon (R-Pewaukee) maintained there was a transparent process, at least as far as lawmakers' involvement went.
"When you use the term 'backroom deal,' I think it kind of mischaracterizes the nature of how this came together," Neylon said. "We were all very much informed and aware of negotiations as they progressed."
The key sticking points in the surplus negotiations were never a secret, as Evers, Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu all publicly shared their must-have measures.
Neylon disputed the notion of Tiffany's criticism hurting Republicans.
"I think if I was running for governor, I'd probably say the same thing," he said.
The state's top legislative leaders have yet to appear publicly since the agreement was announced Monday. When asked why Vos and Assembly Majority Leader Tyler August weren't there, Neylon maintained it was more significant to have non-leadership members touting the plan.
Lots of unknowns at the moment
How the surplus deal will actually benefit people still carries a lot of unknowns. Several school district administrators told CBS 58 Tuesday they weren't comfortable commenting on the deal until they knew how much they'll be getting in additional general school aids.
The state's complex school funding formula will also cause the level of property tax relief to vary from one community to another.
Neylon told reporters those specifics will be known "in weeks, not months."
The surplus rebate checks, $300 for single filers and $600 for married couples filing jointly, would go out no later than Sept. 15, according to the bill's language.