05/12/2026
Today, my colleagues and I held a press conference on the agreement between the Legislature and Governor Evers on the use of Wisconsin’s budget surplus to provide direct support and relief to taxpayers across our state.
This surplus was made possible because Republicans maintained fiscal discipline during last year’s bipartisan budget negotiations, allowing Wisconsin to stay financially strong while continuing to invest in key priorities.
After months of discussion, this agreement delivers relief in several important ways:
✅ Direct Payments to Taxpayers
Wisconsin residents who filed a 2024 state income tax return will receive a $300 rebate, while married couples filing jointly may receive up to $600.
Altogether, an estimated $870 million will be sent back directly to Wisconsin taxpayers.
✅ Property Tax Relief
The plan provides over $300 million in property tax relief for every school district in Wisconsin through the school funding formula, including districts that currently receive no aid under the general formula.
An additional $50 million in relief will come through technical colleges by lowering the amount of debt they may levy on taxpayers. Republicans have worked for years to reduce this burden, and this legislation halves the remaining debt.
✅ Tax Relief for Wisconsin Workers
This legislation eliminates Wisconsin income taxes on tipped wages and overtime pay, delivering more than $230 million in permanent tax relief to hardworking Wisconsinites.
We decided to take this provision even further than the federal government as it won't expire in 2028.
This agreement builds on the second-largest income tax cut in Wisconsin history secured through the last budget which provided $1.5 billion in relief.
✅ Historic Support for Special Education
The 2025–27 state budget already included the largest increase in special education reimbursement rates in Wisconsin history. Based on DPI’s estimated 4% growth in aidable costs, reimbursement rates were projected to increase to:
• 42% in year one
• 45% in year two
However, because DPI’s original estimate was off by approximately 5%, the reimbursement rate came in lower than expected.
This agreement adds another $85 million in year one and $230 million in year two to close that gap and provide extra funding, increasing reimbursement rates to 42.7% this year and 50% in 2026–27 — double the rate from 2019.