A bipartisan agreement forged between Republican lawmakers, leaders of Milwaukee, and Governor Tony Evers is poised to inject much-needed funds into Wisconsin's largest city, preventing impending bankruptcy and bolstering education spending statewide. The deal, expected to secure legislative approval and the governor's signature, allocates over $1 billion to K-12 schools and addresses Milwaukee's looming financial crisis.

While celebrated as a transformative victory by both Democrats and Republicans, the plan has drawn criticism from various corners. Conservatives have labeled the Milwaukee rescue package a bailout, arguing that local sales tax increases should be subject to voter approval. Conversely, the state teachers' union opposes the expansion of voucher payments to private schools, a key component of the education funding plan, and has urged Governor Evers to veto the measure.

The Milwaukee funding bill addresses the city's urgent need to shore up its underfunded pension system and maintain vital police, fire, and emergency services. Without legislative action, Milwaukee faced the prospect of bankruptcy by 2025, necessitating drastic budget cuts with potentially devastating consequences.

The agreement grants authority to the Milwaukee County Board and the Milwaukee Common Council to determine whether to raise local sales taxes to address pension obligations and fund emergency services. This provision resolves a major point of contention, as some Republicans favored requiring voter approval for any tax increases. The plan designates 20% of the state's 5-cent sales tax to generate approximately $1.6 billion in aid for local governments, with aid subsequently increasing in line with sales tax revenue growth.

The education funding component of the deal includes a $50 million investment in reading and literacy programs, although specific program details remain undefined. Republicans are advocating for a phonics-based approach to reading instruction, emphasizing sounding out letters and phrases. The bill also increases special education cost reimbursement to cover one-third of district expenses and allocates $30 million to address mental health needs in schools, aligning with priorities shared by Governor Evers and Democrats.

The expansion of the state's private school voucher system, a long-standing point of contention for Governor Evers, is also incorporated into the plan. Increased payments to private schools accepting public school students aim to reduce costs and facilitate the enrollment of more non-voucher students. Proponents of voucher schools argue that the additional funding will help prevent the closure of financially struggling schools, noting that over 40% of private schools participating in the voucher program have closed since its inception in Milwaukee in 1990.