Evers, GOP leaders reach $1.8B deal to lower taxes, boost school funds

Key Points:

• Wisconsin Governor Tony Evers and Republican legislative leaders have agreed on a $1.8 billion bipartisan spending package using the state's projected $2.5 billion surplus, aimed at funding schools, lowering property taxes, and providing direct payments to income tax filers.
• The deal includes $850 million for direct payments of $300 to individual filers and $600 to married couples, increased special education funding to 50% reimbursement by 2027, and elimination of taxes on cash tips and overtime pay.
• The package seeks to reduce the reliance on property taxes for school funding by directing hundreds of millions in state funds to schools and technical colleges, addressing recent tax increases caused by prior budget decisions.
• The bipartisan agreement was negotiated after months of discussions and comes amid the upcoming midterm elections, with some Democrats, including gubernatorial candidate Sen. Kelda Roys, criticizing it as a "backroom deal" and an election-year bribe.
• The timing of the deal is unusual, occurring outside the regular budget cycle, and was facilitated by the impending retirements of key state leaders, which helped ease political tensions and foster bipartisan cooperation.