Lots of Compromise Possible

Last night Gov. Tony Evers gave a speech that set the right tone. He talked about compromise and bipartisanship. But the actual budget document he released later contained a host of things that the Republican Legislature has rejected twice before. While I agree with virtually all of those things (paid family leave, legalized marijuana, Medicaid expansion, etc., etc., etc.) they were nonstarters and they only served to further the divide. The actual proposals didn’t fit the speech.

That was unfortunate, but what’s done is done and those proposals are certainly done. The Republicans will reject Evers’ document entirely and start over as they have in the past. That in itself represents a failure for Evers. He should have tried to get some agreements with Republican leadership before he introduced his budget.

In any event, there are several items that the Governor and Speaker Robin Vos (the only Republican who really matters) could find common ground on. Here’s a list.

Tax cuts. With a $7 billion surplus, you can bet that there are going to be some. Evers wants a 10% income tax cut for single people earning up to $100,000 and couples earning up to $150,000. Republicans have floated a flat tax, though Vos has stopped short of saying he’d make that a bottom line in the budget. If Evers goes along with deeper cuts in the top rate then a deal is possible.

Help for local governments. Evers wants to devote 20% of the state sales tax to aid local governments. Republicans have said they’re open to something like that. What’s important is that shared revenues get tied to some index, like the sales tax, that grows over time. That’s because shared revenues have been frozen for decades.

Personal property tax. Evers wants to eliminate the property tax on certain business equipment. So do the Republicans. They just need to work out the language.

Schools. Evers wants $2.6 billion in additional funding for K-12 public schools while the Republicans want an increase in vouchers. Evers isn’t going to get anywhere near what he’s asked for — it’s $600 million more than Republicans have already said they would reject — but he should be able to get some of it if he’s willing to allow more vouchers.

Debt buy down. Evers would use $380 million to pay off Transportation Fund debt. That’s just sound fiscal management because it means the state will save a bunch of money in interest payments. Expect Republicans to hear from lobbyists representing those interests that get the interest. Still, it’s clearly the right thing to do, especially with any part of the surplus that is one time money.

PFAS. Evers wants $100 million to combat pollution and water contamination from so-called forever chemicals known as PFAS. I doubt the GOP will give him that much, but they should want to do something.

Mental Health. Evers asks for $500 million to expand access to mental and behavioral health services and reduce suicide rates. Once again this should just be a question of how much.

EKGs. Evers requested $4 million to pilot electrocardiogram, or EKG, tests to screen youth athletes for heart conditions. Republicans should just go along with this one.

Parole. Evers would require the state Parole Commission and Department of Corrections to notify family members when someone applies for parole or is let out on parole or extended supervision. While this is bipartisan from the get-go, it’s also non-fiscal policy that would be stripped from the budget automatically even if the Republicans weren’t going to toss the whole thing anyway. Maybe the GOP will sneak it back in at the end of the process or pass it in a separate bill.

DA pay. Evers calls for an increase in pay for assistant district attorneys and public defenders and the creation of about 50 new positions for assistant DA’s and 50 for public defenders. Republicans should want this — at least the prosecutor half. I imagine they’ll do some of what the Governor wants.

Wage increases. Evers would give state employees a 5% wage increase in 2023 and a 3% increase in 2024. Republicans will probably mess with the details, but it’s likely to end up close to this.

Brewer’s stadium. Evers wants $290 million to cover repairs and renovations at American Family Field. This terrible, awful, scandalous and repulsive. Did I mention it was bad? Of course the GOP will approve it, but I would bet not without some angst in their own caucus where any help for anything in Milwaukee is toxic.

Aside from that last item, all of these things would represent progress, even if the Governor can only get some or most of what he wants. Since he’ll never veto a whole budget (no matter what he might say) he’ll need to use the threat of line item vetoes as leverage.

By loading up his budget once again with liberal wish list items, Evers has stumbled out of the gate yet again. But it’s not the end of the world. There’s still plenty of room and lots of time to make progress.