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3h ago

Wisconsin Senate Defeats $1.8 Billion Tax and School Funding Deal in 15-18 Vote

The clash centers on using one-time surplus dollars for quick relief versus avoiding new costs that could strain future budgets.

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Sen. Dianne Hesselbein (D-Middleton) speaking on the Senate floor. Hesselbein was named Senate minority leader in December of 2023 and was reelected to that position in November of 2024. Photo courtesy of Sen. Dianne Hesselbein's office
A student takes notes during an introduction to ethics class at Northeast Wisconsin Technical College on Monday, July 28, 2025, in Green Bay, Wis. Northeast Wisconsin Technical College has seen higher retention and graduation rates since condensing most courses from 16 weeks to eight. (Joe Timmerman / Wisconsin Watch)
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Overview

  • The state Senate, which took up the bill Wednesday night, voted it down 15-18 after the Assembly passed it 61-32 earlier in the day.
  • The plan used about $1.8 billion of the surplus for $300 to $600 rebate checks, an income tax cut on tips and overtime, property tax relief, and $315 million for special education.
  • All Senate Democrats opposed the deal and three Republicans broke ranks as critics said they were shut out of talks and warned the package could create a structural deficit next session.
  • Gov. Tony Evers blamed GOP gubernatorial candidate Tom Tiffany for helping sink the agreement after Tiffany contacted Senate Republicans to voice his opposition.
  • The defeat leaves a multi‑billion dollar surplus unspent for now, and school leaders say the lost funding could trigger program cuts and staff losses as districts finalize next year’s budgets.