The Wisconsin Senate is poised to vote on a two-year budget plan that proposes tax reductions across all income brackets, with higher earners receiving the largest cuts. The plan also allocates a significantly smaller amount to the University of Wisconsin system than requested, sparking controversy. A key component of the budget is a bipartisan agreement with Governor Tony Evers to increase K-12 education funding by $1 billion, coupled with a similar increase for local governments. This includes allowing Milwaukee city and county to raise local sales taxes to address financial difficulties.

Despite calls from Governor Evers, Democratic lawmakers, and other advocates to increase funding for the UW system, a K-12 school safety office, and a pandemic-era childcare program, Republican leaders have indicated they won't make substantial changes to the budget. The Senate's vote is expected to be followed by the Assembly's vote, after which it will go to Governor Evers. The governor has line-item veto power but cannot add funding. He can also veto the entire budget, which would force the legislature to restart the process. Evers has threatened a full veto if UW's diversity, equity, and inclusion (DEI) program funding is cut.

The current budget reduces UW funding by $32 million, the amount allocated to DEI staff and programs. The university could potentially regain this funding if it demonstrates its use for workforce development. Republicans also declined to fund UW's top building project: a new engineering facility in Madison. Other proposed budget changes include increased funding requests for the state's school safety office, as federal funding is expiring. Child care providers have also advocated for restoring funding for a pandemic-era child care subsidy program that Republicans cut.

Advocates for increased funding argue that the state's projected $7 billion budget surplus provides ample resources. Republicans, however, have prioritized tax cuts. The proposed $3.5 billion income tax cut would disproportionately benefit wealthier individuals. For example, those earning between $60,000 and $70,000 annually would see an average tax cut of approximately $250, while those earning between $25,000 and $30,000 would receive only about $15. The largest percentage decrease, over 17%, would go to those earning between $250,000 and $300,000, resulting in an average savings of $2,157. The 11 wealthiest taxpayers in Wisconsin, earning over $75 million annually, would each receive a $1.8 million tax cut. Governor Evers may attempt to reduce the tax cut using his partial veto power.

Additional budget provisions include a 4% pay raise for state employees this year and 2% next year, with prison guards receiving a substantial raise to address staffing shortages. The budget also allocates $125 million to combat PFAS water pollution and increases electric vehicle registration fees.