A compromise on tax cuts and K-12 spending between Governor Tony Evers and Republican legislative leaders is unlikely. Evers on Wednesday vetoed a Republican-authored tax-cut package that passed just last week, but said he’s open to working on a new bill. Senate Majority Leader Scott Fitzgerald (R-Juneau) said that’s not going to happen.

Sen. Scott Fitzgerald (WRN)

“No. The Assembly’s adjourned. He knew that. We all knew that when the Assembly wrapped up their business last week.”

Assembly Speaker Robin Vos (R-Rochester) suggested the Democratic governor may not understand how things work. “I’m always willing to sit down and talk about it, but it’s usually before the bill is passed, not afterward, thinking we’re somehow going to negotiate now.”

Evers wants more of a projected $452 million dollars in extra state tax revenue to go to K-12 education, and lowered property taxes.

Vos said that for now, that money is out of reach. “Unfortunately it’s in the state checkbook, so it can’t help to grow the economy,” he said. “It’s disappointing, but I think it’s better to have it sit in the state’s checkbook than to grow the size of government.”

GOP leaders can attempt to override Evers’ veto. But in the Senate, where the bill passed with no Democratic support, they lack enough Republican votes to make that happen.

Speaker Robin Vos

Less than a week after it was introduced, the state Assembly has sent a tax cut to Governor Tony Evers. And Speaker Robin Vos (R-Rochester) is eager to see what the Democratic governor does with it. “Whether or not what he said during the campaign, about standing with the middle class is true, or does he stand with the far left of this chamber, which is clearly out of touch with the state of Wisconsin.”

Evers wanted some of a $392-million state revenue surplus spent on K-12 schools, a wish reiterated by Assembly Democrats. “Let’s put the focus back where it belongs. On our schools, on education, on our children, on our families, on the hard working people of Wisconsin,” said Representative Lisa Subeck (D-Madison).

Representative Marisabel Cabrera (D-Milwaukee) made her first floor speech, and directed her comments at Vos, in Spanish, and then in English. “After all, it is the people who are in charge, not you Mr. Speaker.”

The bill would reduce the average income tax bill by $106, provide a $45 million decrease in personal property taxes paid by businesses, and use $100 million to pay down state debt. Republicans said it was the right move. “I’ve said it before and I’ll say it again: government will never, ever, ever spend your money better than you will,” said Representative Shannon Zimmerman (R-River Falls).

Thursday was the last Assembly floor action of the legislative session. Vos portrayed the session as a win for his caucus and the state. “Republicans are leading the way in Wisconsin in every way possible,” he said.

Rep. Gordon Hintz (D-Oshkosh)

Minority Leader Gordon Hintz (D-Oshkosh) had a somewhat less rosy view. “This was a session that really began under the cloud of the lame duck, with a new Democratic governor whose powers were undermined before he was even sworn in,” Hintz said, adding that many good proposals never made it to the floor. “Remember, Governor Evers cannot sign laws if bills do not make it to his desk.”

Republicans in the Assembly were not alone in voting for the tax cut plan. Representatives Steve Doyle (D-Onalaska) and Nick Milroy (D- South Range) were yes votes. It got no Democratic votes in the Senate, where Republicans gavelled in early Thursday to vote passage.

While Thursday was the last day of action for the Assembly, the Senate is scheduled to be on the floor in March.

At the Capitol, a $247 million dollar Republican tax cuts package is on the fast track in the Assembly. In the Joint Finance Committee on Monday, Representative Evan Goyke (D-Milwaukee) called the process “incredibly fast”

“This bill was introduced Friday afternoon, and we’re here on a Monday, and the majority party wants to get it to the governor’s desk by the end of the day Thursday.” The budget panel approved the package on a partisan vote Monday.

Committee co-chair, Representative John Nygren (R-Marinette), said it’s happened before – and Democrats did it. “A few of us were involved in the legislature when there was actually a tax increase that former Governor Doyle and Democrats who were in power at the time moved forward without actually any hearing at all.”

The package draws on increased state revenues, to increase the maximum deduction on income taxes, provide a property tax exemption for manufacturers and pay down state debt. It does not include money for K-12 education, which Evers had sought.

The Assembly’s final session day of the floor period is Thursday, and the state Senate is expected to complete its work in March.

At the Capitol, Republicans in the Wisconsin Legislature want to use a projected increase in state tax revenue to provide nearly $250 million in reductions to the personal income tax. “This is going to put money in the pockets of low-and-middle-income tax flilers,” said state Representative Joan Ballweg (R-Markesan). It’s going to be direct mony to those folks.

The tax cuts would start in the 2020 tax year. The average income filer would see an additional $105 in tax reduction,” Ballweg said.

The GOP plan includes a nearly $45 million cut to personal property taxes paid by manufacturers, and another $100 million towards paying down state debt. It’s expected to be ready for an Assembly vote next week, and Senate Majority Leader Scott Fitzgerald is supportive.

Democratic Governor Tony Evers wants some of those revenues to go to K-12 education. In a statement, his office said Assembly Republicans made it clear today that they would rather break their promise to the people of our state than work together on funding our schools and reducing property taxes in Wisconsin.”

Legislative Republicans say the state is undercharging its own employees on rental fees in state-owned housing.

Employees for the DNR or the UW-System live on site in those properties at parks and research stations. Representative Samantha Kerkman says a number of properties haven’t had their prices adjusted since 1995.  

“They’ve been complying with some of the law, you know some of the statute, but they haven’t been following through on their own procedures to actually set the market rate for rent.”

Kerkman says there are both rental and tax implications here. 

“When somebody does receive a benefit for their employment, that does have tax implications as well, so again we need to make sure we’re checking all the boxes.”

Republicans say the state undercharged employees over 60-thousand dollars in rent last year.