Governor signs budget in early morning to secure Medicaid funds

Associated Press

03-07-2025

MADISON, Wis. (AP) — Wisconsin Gov. Tony Evers signed a new two-year budget in the early morning hours Thursday in a race against Congress to ensure the state gets a federal Medicaid match that it would lose under President Trump's tax and spending cuts package.
In an extraordinarily rapid succession of events, Evers and Republican lawmakers unveiled a compromise budget deal on Tuesday, the Senate passed it Wednesday night and hours later just before 1 a.m. on Thursday the Assembly passed it. Evers signed it in his conference room minutes later.
Democrats who voted against the $111 billion spending bill said it didn't go far enough in meeting their priorities of increasing funding for schools, child care and expanding Medicaid. But Evers, who hasn't decided on whether he will seek a third term, hailed the compromise as the best deal that could be reached.
'I believe most Wisconsinites would say that compromise is a good thing because that is how government is supposed to work,' Evers said.
Wisconsin's budget would affect nearly every person in the battleground state. Income taxes would be cut for working people and retirees by $1.4 billion, sales taxes would be eliminated on residential electric bills and it would cost more to get a driver's license, buy license plates and title a vehicle.
Unprecedented speed
There was urgency to pass the budget because of one part that increases an assessment on hospitals to help fund the state's Medicaid program and hospital provider payments. Medicaid cuts up for final approval this week in Congress cap how much states can get from the federal government through those fees.
The budget would increase Wisconsin's assessment rate from 1.8% to the federal maximum of 6% to access federal matching funds. But if the federal bill is enacted first, Wisconsin could not raise the fee, putting $1.5 billion in funding for rural hospitals at risk.
In the rush to get done, Republicans took the highly unusual move of bringing the budget up for votes on the same day. In at least the past 50 years, the budget has never passed both houses on the same day.
'We need to get this thing done today so we have the opportunity to access federal funding,' Republican Assembly Speaker Robin Vos said at the start of debate just before 8 p.m. Wednesday.
Governors typically take several days to review and sign the budget after it's passed but Evers took just minutes.
Bipartisan compromise
In a concession to the Democratic governor, Republicans also agreed to spend more money on special education services in K-12 schools, subsidize child care costs and give the Universities of Wisconsin its biggest increase in nearly two decades. The plan would also likely result in higher property taxes in many school districts due to no increase in general aid to pay for operations.
The budget called for closing a troubled aging prison in Green Bay by 2029, but Evers used his partial veto to strike that provision. He left in $15 million in money to support the closure, but objected to setting a date without a clear plan for how to get it done.
Republicans need Democratic votes
The Senate passed the budget 19-14, with five Democrats joining with 14 Republicans to approve it. Four Republicans joined 10 Democrats in voting no. The Assembly passed it 59-39 with six Democrats in support. One Republican voted against it.
Democratic senators were brought into budget negotiations in the final days to secure enough votes to pass it.
'It's a bipartisan deal,' Senate Minority Leader Dianne Hesselbein said before the vote. 'I think everybody left the table wishing it was different, but this is something everyone has agreed on.'
Democrats said newly drawn legislative maps, which helped them pick up seats in November and narrow the Republican majorities, led to greater compromise this year.
'That gave us leverage, that gave us an opportunity to have a conversation,' Democratic Sen. Mark Spreitzer said.
But still, Spreitzer said the budget 'fell far short of what was needed on our priorities.' He and other Democrats said it didn't go enough to help fund child care, K-12 schools and higher education, in particular.