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Budget Process and Pro-Worker Highlights

WI AFL-CIO
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On Tuesday, February 18, Governor Tony Evers released his Biennial Budget for the fiscal years 2025 to 2027. Governor Evers’ proposed Budget continues to prioritize economic opportunity and prosperity for working families.

Next Steps for the Budget

Gov. Evers’ Budget was introduced into the state Legislature and assigned to the Joint Finance Committee (JFC) which will recommend changes to the Governor’s Budget. The JFC will set aschedule for a number of public hearings, likely to be held in March and April around the state, for Wisconsinites to share their thoughts and input on budget proposals. When the JFC has concluded its work, it will send an amended Budget bill to the Legislature.

A Pro-Worker Budget from Governor Evers

Here are initial highlights of some of the pro-worker components of Governor Evers’ Budget.

Repeal Right to Work

Governor Evers’ Budget repeals Scott Walker’s 2015 anti-union Right to Work law and restores the right of working people to stick together in our unions, maximizing our collective bargaining power with strong unions to bargain for better wages, working conditions, and safety on the job.

Collective Bargaining Rights for State and Local Government Workers

Governor Evers’ Budget recognizes the rights of public sector employees, specifically adding workers at the UW Hospitals and Clinics, all faculty and academic staff employed by the UW System, as well as workers at other independent state agencies as employees who may collectively bargain. Further, the Governor’s Budget makes critical improvements to our public sector collective bargaining law like eliminating the required annual recertification election of every bargaining unit and returning democratic norms to union certification elections.

Restore Prevailing Wage

Prevailing wage laws set a wage floor for Wisconsin’s construction workers and ensure a level playing field for Wisconsin’s workers and contractors alike. This Budget restores prevailing wage laws for state and local projects.

Restore Project Labor Agreements

Project Labor Agreements are a longstanding mechanism used by the private and public sector to ensure that a construction project will be completed on-time and on-budget. In 2017, Republican politicians jammed a bill through the Legislature that essentially prohibited the use of Project Labor Agreements by state and local governments. The Governor’s proposed Budget repeals this prohibition and returns the power to determine whether to utilize Project Labor Agreements to the state and local governments.

Union Dues State Tax Deduction

Governor Evers’ Budget would provide the ability for union members to deduct union dues from our state taxes. Up until 2017, union members could deduct union dues from federal taxes. President Trump’s December 2017 tax bill eliminated this deduction for working families.

Strengthening Public Schools

In declaring 2025 as the “Year of the Kid,” Governor Evers hailed his proposed Budget as the most “kid-friendly” budget in Wisconsin history. At the outset, Governor Evers’ Budget recognizes that the Legislature has underfunded our public schools, and therefore our children’s education, for nearly a decade. In his commitment in doing what’s best for kids, the Governor proposes raising per-pupil spending caps and indexing them to inflation.  

Tax Savings and Tax Cuts for the Middle Class

Governor Evers’ proposed Budget aims to cut $2 billion in taxes for working Wisconsinites through a number of initiatives and proposals. The Budget calls for property tax relief through state funding of public K-12 education, increasing the school levy tax credit, and incentivizing local governments to freeze property taxes. The proposed Budget eliminates income taxes on cash tips received by an employee from the customers of the employer. Governor Evers’ Budget increases the Earned Income Tax Credit, expands the Homestead Tax Credit, and expands the veterans and surviving spouses property tax credit.

Responsibly Funding and Strengthening Our Infrastructure

In this Budget, Gov. Evers continues his commitment to fixing the roads, maintaining a 21st century infrastructure, and responsible budgeting. Governor Evers’ Budget puts forth a plan with increased funding of transportation for our major highway program, mass transit, local multimodal transportation projects, and general transportation aids.

Affordable and Stable Childcare for Wisconsin Families

The Governor’s proposed Budget will invest in our childcare system, focusing on stabilizing childcare centers and making childcare more affordable for working parents.

Clean Drinking Water

Governor Evers’ proposed Budget commits to safe and clean drinking water for Wisconsinites by focusing on removing lead laterals, installing water filtration systems in schools, and expanding testing and treatment around dangerous PFAS chemicals in water systems.

Health Insurance Accountability

Governor Evers’ Budget directs the Office of the Commissioner of Insurance to audit health insurance corporations that have high rates of denying Wisconsinites’ medical claims, and to require corrective action plans based on the audit findings. The Governor’s Budget calls for the creation of the Public Intervenor Office that would assist Wisconsinites in getting a fair deal from health insurance companies when they deny our claims and when we appeal to ensure we receive medical services that should be covered by our health insurance plans.

Additional pro-worker budget highlights include, but are not limited to, budget initiatives that lower insulin and prescription drug costs, expand Medicaid / BadgerCare, protect workers from misclassification and payroll fraud, expand Wisconsin’s Family and Medical Paid Leave program and create a paid leave program, support our UW System and Wisconsin Technical College System, improve Wisconsin's Emergency Medical Services and legalize marijuana with collective bargaining for workers.

The Wisconsin State AFL-CIO will continue to analyze the Budget and how it impacts workers in the coming weeks and months. The Budget as a legislative bill will take turns and changes as the Republican-controlled Joint Finance Committee begins their budget work.

Stay tuned for information on the JFC public budget hearing schedule so you can make your voice heard and share your input in shaping the 2025-2027 Wisconsin State Budget.