Governor Tony Evers is asking the Legislature to increase spending by 20 percent or $119 billion over the next biennium partly financed by increasing state taxes by $2.2 billion and fees by $356 million, according to the Legislative Fiscal Bureau.

The Governor’s 2025-27 budget proposal would create a new individual income tax rate of 9.8 percent on income exceeding $1 million ($500,000 for married separate filers) which would generate $1.3 billion, and he also wants to limit the Manufacturing and Agriculture Tax Credit which would bring in $792.2 million.

Various other provisions of the Governor’s budget proposal would also create new revenue of $189.4 million from various sources including:

• Update the Internal Revenue Code to match federal provisions
• Limit capital gains exclusion
• Increase the wage threshold for Enterprise Zone and Business Development Tax Credits

Motor vehicle related fee increases include title and transfer fees, and a hike in the fee for obtaining or renewing a motor vehicle driver’s license.

Aside from the tax fee increases, the Governor says he will also reduce taxes by increasing the personal exemption creating a residential electricity and natural gas exemption from the sales tax expanding the Homestead Tax Credit, excluding cash tips from individual taxes, and exempting over the counter drugs from the sales and use tax.

To summarize, according to the Legislative Fiscal Bureau, Governor Evers budget includes $3.1 billion in tax increases and $824.5 million in tax reductions.

The Joint Finance Committee has announced public hearings related to the state budget:

Friday, April 4, 2025

10:00 a.m. – 5:00 p.m.

Wisconsin State Fair Park

Exposition Center

640 South 84^th Street

West Allis, WI

(Parking at Gate 4)

Monday, April 28, 2025

10:00 a.m. – 5:00 p.m.

Hayward High School Auditorium

10320 Greenwood Lane

Hayward, WI

Tuesday, April 29, 2025

10:00 a.m. – 5:00 p.m.

Northcentral Technical College

Center for Health Sciences

1000 W. Campus Drive

Wausau, WI

NOTE:  Attendees must fill out a registration form upon arrival, if they wish to testify.

The Joint Finance Committee has created a dedicated online portal for constituents to provide input: https://legis.wisconsin.gov/topics/budgetcomments or directly via email: budget.comments@legis.wisconsin.gov. Comments can also be sent via mail to:  Joe Malkasian, Room 305, State Capitol, Madison, WI 53702.

All comments will be circulated to members of the Committee.