State budget negotiations between the legislature and governor developed rapidly as the budget deadline in early July loomed.   The biennial budget bill advanced quickly, passing in the middle of the night on July 3^rd.  The enacted budget is seen by many as a compromise between legislative Republicans, who hold majorities in both the Assembly & Senate, and Democrat Governor Tony Evers.

The new state budget includes several provisions that will impact small businesses in Wisconsin. Below is a brief highlight of the most significant items that may have an impact on you:

• $1.5 Billion Tax Cut
  • The state was facing a surplus, and NFIB fought to ensure at least a portion of these funds were returned to taxpayers instead of creating new ongoing programs. A majority of the tax cuts are included in two provisions:
    • Lower income tax rates by expanding the second bracket.
    • Creation of a retirement income exemption.
  • Lower Workers’ Compensation Fees for Businesses
    • A good first step to rein-in costs for employers related to workplace injuries, as it would set new maximum fees for hospital care provided to injured workers under the workers’ compensation program.
    • We expect the rate that businesses pay for their workers’ compensation insurance will go down to the extent that the fee schedule lowers medical costs in the program in the years to come.
  • Historic Tourism Funding
    • Funding for the WI Department of Tourism is now at a new high. Tourism boasts the highest rate of return of any state agency and looks to build upon its strong record of success.
  • Workforce Education
    • Both the WI Technical College and University Systems saw increases in funding as they continue to prepare future members of our state’s workforce.
  • Transportation Infrastructure
    • Funding for roads and bridges increased by nearly $1.3 billion.

 

With the state budget process in Madison now complete, the legislature will be in recess for the rest of the summer and plans to reconvene in Se