July 24, 2023
On July 5, Governor Evers signed the Wisconsin 2023-25 Biennial Budget. How does Wisconsin’s final budget stack up?
Our Take
We appreciate Governor Evers being a stop gap for some of the most egregious proposals from the Republican-controlled Joint Finance Committee (JFC). But, if we want to actually address Wisconsin’s racial disparities, we have a lot more work to do.
The Good
Tax Cuts for Everyday Families, Not the Wealthiest 1%
The JFC tried yet again to let the wealthiest off the hook from paying what they owe. It would have meant struggling families are further left behind, particularly children and families of color and those furthest from opportunity. Under the Legislature’s tax plan, the richest 5% of income tax filers would have gotten almost half of a $3.5 billion tax cut, while the bottom 40% would have gotten just 0.4%. Very little of the tax giveaway would have gone to families of color. Black households, for example, would have gotten just 2.2% of the proposed tax cut, even though they constitute 5.1% of Wisconsin tax filers.
Thankfully, the Governor reduced the JFC’s income tax cut from $3.5 billion to $175 million, and did away entirely with lower rates for the two highest earning brackets. This is more equitable and cuts taxes for folks with lower incomes in our state, instead of the wealthy few.
Grants for Child Care Providers
Wisconsin’s child care crisis hits families of color hard because: 1) families of color pay a larger share of their income for child care than white families do, and 2) child care work—one of the lowest paid professions—is disproportionately made up of women of color.
Thankfully, the Governor used his veto authority to allow child care funds in the budget to be used for grants, not loans. Unfortunately, the JFC gutted overall funding for child care – read on.
The Bad
JFC Fails to Lift Up Families & Support Child Care
Backed by wealthy corporate interests, the Republican-controlled JFC gutted the supports meant to stabilize Wisconsin’s child care industry and support the state’s workforce. As a result, the budget provides just $15 million instead of the Governor’s originally proposed $300 million, which will barely make a dent in Wisconsin’s child care crisis.
What else did state decision makers fail to address?
- Extending postpartum coverage to people covered under BadgerCare, which would help us start to address Wisconsin’s tragic racial disparities in maternal mortality for Black birthing people
- Paid family leave, so workers wouldn’t have to choose between paying their bills and caring for a child or other loved one
- Returning 17-year-olds to the juvenile justice system and ensuring that youth are treated as youth, not adults
- Access to drivers’ licenses for Wisconsin residents who are currently blocked due to immigration status
Finally, despite the veto affirming 400 years of funding for public schools, the budget doesn’t adequately invest in our public schools, including mental health services.
Next Steps
Last week, our team met for our semi-annual strategy planning. We built upon what we heard from community, and assessed priorities for this fall and beyond. The state legislature will meet again in September. We’ll keep you posted on how you can get involved and take action.
We are in this fight for the long haul, and we hope you are too.
