2023-25 Budget in Brief

STATE OF WISCONSIN

Budget in

Brief

2023 - 25

TONY EVERS, Governor

STATE OF WISCONSIN

BUDGET IN BRIEF

TONY EVERS, GOVERNOR

FEBRUARY 2023

VISION OF

EXECUTIVE BUDGET AND FINANCE

DEPARTMENT OF ADMINISTRATION

TABLE OF CONTENTS

I. D

EVELOPMENT OF THE 2023-25 BUDGET ................................................................................. 2

A. OVER

VIEW ............................................................................................................................... 2

B. REVENUE AND EXPENDITURE OUTLOOK ........................................................................... 3

C. GETTING THINGS DONE BY CONNECTING THE DOTS ...................................................... 4

II. SU

MMARY OF GOVERNOR'S MAJOR BUDGET INITIATIVES .................................................... 6

A. I

NVESTING IN WHAT’S BEST FOR KIDS ............................................................................... 6

B. STRENGTHENING OUR ECONOMY & FUTURE WORKFORCE ......................................... 12

C. SUPPORTING HEALTHIER WISCONSINITES ...................................................................... 24

D. BUILDING STRONG, SAFE COMMUNITIES ......................................................................... 36

E. PROTECTING & CONSERVING OUR NATURAL RESOURCES ......................................... 47

F. ADDITIONAL KEY PRIORITIES ............................................................................................. 54

III. ST

ATE BUDGET OVERVIEW ....................................................................................................... 64

A. P

RESENTATION OF THE GOVERNOR'S 2023-25 BUDGET ............................................... 64

B. EXPENDITURES ..................................................................................................................... 64

C. POSITIONS ............................................................................................................................. 67

D. BUDGET BALANCE ................................................................................................................ 69

E. DEBT MANAGEMENT ............................................................................................................ 70

F. CASH MANAGEMENT ............................................................................................................ 71

V. BUDGET INITIATIVES BY SUBJECT AREA ................................................................................ 74

A. I

NVESTING IN WHAT’S BEST FOR KIDS ............................................................................. 74

B. STRENGTHENING OUR ECONOMY & FUTURE WORKFORCE ......................................... 82

C. SUPPORTING HEALTHIER WISCONSINITES ...................................................................... 98

D. BUILDING STRONG, SAFE COMMUNITIES ....................................................................... 112

E. PROTECTING & CONSERVING OUR NATURAL RESOURCES ....................................... 127

V. EC

ONOMIC ASSUMPTIONS AND REVENUE ESTIMATES ..................................................... 132

TIONAL ECONOMY................................................................................................................ 132

REVENUE ESTIMATES .............................................................................................................. 134

VI. REFERENCE SECTION .............................................................................................................. 138

APPENDICES ........................................................................................................................................... 142

BOUT THE BUDGET DOCUMENTS ..................................................................................................... 150

CHARTS

CHART 1: FISCAL YEAR 2024-25 BUDGET BY FUND SOURCE ...................................................... 64

CHART 2: FISCAL YEAR 2024-25 GPR TAX REVENUE BY TYPE .................................................... 65

CHART 3: FISCAL YEAR 2024-25 GPR BUDGET ALLOCATION BY PURPOSE .............................. 66

CHART 4: STATE SUPPORT FOR SCHOOL COSTS TO EDUCATE ENGLISH LEARNERS

DECLINED SIGNIFICANTLY ............................................................................................... 76

CHART 5: GOVERNOR’S BUDGET INCLUDES RECORD PER PUPIL REVENUE LIMIT

ADJUSTMENT INCREASES ............................................................................................... 78

CHART 6: GOVERNOR’S BUDGET WILL PROVIDE RECORD INCREASE IN STATE SPECIAL

EDUCATION REIMBURSEMENT ....................................................................................... 79

CHART 7: UNEMPLOYMENT RATE NEAR LOWEST IN DECADES .................................................. 83

CHART 8: RATIO OF UNEMPLOYED PERSONS PER JOB OPENING ............................................. 83

CHART 9: DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES AUTHORIZED FTE

POSITION HISTORY ........................................................................................................... 85

CHART 10: INFLATION ADJUSTED TAX REVENUES FLAT ................................................................ 89

CHART 11: MIDDLE CLASS TAX CUTS SINCE 2019 ........................................................................... 90

CHART 12: SENIORS HAVE BEEN PUSHED OUT OF THE HOMESTEAD TAX CREDIT BY

INFLATION ........................................................................................................................... 91

CHART 13: MANUFACTURING AND AGRICULTURE CREDIT INEFFECTIVE AT INCREASING

MANUFACTURING EMPLOYMENT ................................................................................... 93

CHART 14: WISCONSIN MANUFACTURING WAGES RANKING ........................................................ 94

CHART 15: TAX CREDIT CONTEXT ...................................................................................................... 95

CHART 16: WISCONSIN VENTURE CAPITAL FUNDRAISING UP ...................................................... 97

CHART 17: STATUS OF MEDICAID EXPANSION ACROSS THE U.S. ................................................ 99

CHART 18: 2019-20 PER CAPITA PUBLIC HEALTH FUNDING BY STATE ...................................... 101

CHART 19: WISCONSIN DEATHS INVOLVING STIMULANTS .......................................................... 106

CHART 20: AVERAGE DAILY CENSUS AT THE KING SKILLED NURSING FACILITY .................... 111

CHART 21: DECLINING SHARED REVENUE HAS PUSHED UP COUNTY AND MUNICIPAL

RELIANCE ON PROPERTY TAXES ................................................................................. 113

CHART 22: TIGHT LOCAL GOVERNMENT FINANCIAL CONDITIONS HAVE RESULTED IN SHARP

DECLINES IN LOCAL GOVERNMENT EMPLOYMENT IN WISCONSIN ........................ 114

CHART 23: MOST MUNICIPALITIES SEE LITTLE GROWTH FROM NET NEW CONSTRUCTION . 115

CHART 24: MEDIAN VALUE HOME PROPERTY TAX BILLS DOWN SIGNIFICANTLY VS INFLATION

SINCE 2018/19 .................................................................................................................. 117

CHART 25: HI

GHWAY BONDING BIENNIAL TOTALS ........................................................................ 120

CHART 26: DEBT SERVICE PAYMENTS TO TRANSPORTATION FUND REVENUE RATIO. ......... 121

CHART 27: AVERAGE DAILY ADULT CORRECTIONAL INSTITUTION CENSUS ............................ 124

iii

TABLES

TABLE 1: LARGEST BIENNIAL GPR INCREASES OVER BASE ...................................................... 65

TABLE 2: TEN LARGEST GENERAL PURPOSE REVENUE PROGRAMS ....................................... 66

TABLE 3: FISCAL YEAR 2024-25 FTE POSITION CHANGES OVER BASE ..................................... 67

TABLE 4: GENERAL FUND CONDITION UNDER GOVERNOR'S BUDGET .................................... 69

TABLE 5: ESTIMATED GENERAL FUND CONDITION SUMMARY ACCORDING TO GENERALLY

ACCEPTED ACCOUNTING PRINCIPALS .......................................................................... 70

TABLE 6: TRANSPORTATION FUND REVENUE BENEFITS FROM GOVERNOR’S

RECOMMENDATIONS ...................................................................................................... 122

TABLE 7: SUMMARY OF THE NATIONAL ECONOMIC OUTLOOK ................................................ 133

TABLE 8: GENERAL PURPOSE TAX REVENUE ESTIMATES ....................................................... 134

TABLE 9: GENERAL PURPOSE REVENUE ESTIMATES UNDER GOVERNOR’S

RECOMMENDATION ........................................................................................................ 135

TABLE 10: GENERAL FUND TAX CHANGES .................................................................................... 136

Development of

the 2023-25 Budget

I. DEVELOPMENT OF THE 2023-25 BUDGET

A. OVERVIEW

Governor Tony Evers’ first two biennial budgets have built a strong base for Wisconsin going

forward by both investing in the people of this state and key priorities to maintain our

economy’s momentum while delivering tax relief for most Wisconsinites all at the same time.

A rou

ghly $7 billion opening balance in the general fund gives the state of Wisconsin a

historic opportunity to make strategic investments in Wisconsin’s future, address long-

neglected needs, and simply do the right thing when we, as a state, under different times and

circumstances, took actions to simply get by.

At t

he same time, doing the right thing also includes ensuring the state prudently plans for the

future—a future that prepares the state to both weather economic turbulence and leverage

periods of economic success to best position our state by investing only within our means. By

taking this generational opportunity to not only boldly invest in our priorities but also to shore

up our state’s finances for the long term, we can reduce the likelihood of spending cuts to

critical programs or the need for tax increases during future periods where state revenues

may not keep pace with recent years.

In th

is budget, Governor Evers makes key investments that our historically high general fund

balance fortunately—and in many cases, finally—allows the state to prepare for the future.

These investments will allow us to meet our obligations, reduce our debt, maintain our

economy’s momentum, bolster our workforce for the future, and provide a more fiscally stable

future for the benefit of our kids, our communities, and our state as a whole.

The fi

rst step in securing our state’s financial future is increasing our state’s “rainy-day” fund

for a time when, rather than facing a large surplus of funds as our state does today, the state

could experience an economic downturn and is forced to make difficult budget decisions. To

fulfill this first step, the Governor recommends transferring $500 million to the state’s budget

stabilization fund to raise our “rainy-day” fund balance total to over $2.4 billion by the end of

the biennium. This amount is over 10 percent of fiscal year 2023-24 estimated general fund

tax collections and ensures our state is strongly positioned to weather any future economic

downturns.

The sec

ond step is increasing the general fund’s reserve amount to provide a meaningful

cushion against drops in state tax collections. Today’s general fund reserve amount is equal

to less than one-half of 1 percent of estimated fiscal year 2023-24 general fund tax

collections. The Governor’s proposal lifts the reserve by $500 million to fix the amount at

$600 million beginning in fiscal year 2023-24—enough to uphold our spending commitments

if a 2 percent dip in tax collections occur versus current expectations.

The th

ird step is decreasing our debt. To do so, the Governor’s budget is prepaying, or

buying-down, nearly $380 million of our transportation fund’s debt. This debt accumulated in

past biennia as our spending needs increased while the political will to raise revenue for

transportation diminished. By taking this action, a greater share of the fees that our residents

pay going forward for annual auto registrations will be available to fix our roads today rather

than pay for the debt service for what was done in years past.

As he

has in building each of his biennial budgets, Governor Evers and members of his

administration held budget listening sessions across the state to hear directly from

Wisconsinites about their priorities, needs, and how the state can meet its obligation to

provide the critical services the people of this state expect and deserve. For the third

consecutive budget cycle, thousands of people shared their thoughts and ideas of what the

Governor and the Legislature should do in this budget to address both immediate and long-

term needs.

Many of the recommendations in the Governor’s budget came directly from the people he has

heard from over the past few months: increasing resources to support our K-12 public

schools and the mental health needs of our kids; continuing to expand healthcare access and

reduce costs; prudently investing in public safety at both the state and local levels; making

sure child care is both affordable and accessible; further expanding broadband to every

corner of the state; investing in workforce development for critical industries like health and

education; and building on the successes to date in addressing our state’s transportation

infrastructure.

In addi

tion, multiple individuals highlighted the importance of having the budget support

initiatives the Governor implemented with one-time federal pandemic relief funds to keep

investing in priorities such as our workforce, small businesses, and tourism promotion. While

a 2023 report noted that, as a share of federal aid the state received under the American

Rescue Plan Act, Wisconsin ranked first in the country in providing federal resources to

support businesses and economic development, state assistance is necessary to continue

these crucial investments to maintain our economy’s momentum and to prepare and bolster

our economy and our workforce for the future.

The Governor’s budget is about focusing on our shared values as Wisconsinites—to do the

right thing, to make prudent and responsible investments without being reckless, and to do

what we can to make our state an even better place to live, work, play, visit, retire, and raise

a family. It is about making wise and historic investments in our people. It is about continuing

to reduce the tax burden on the middle-class. It is about responsibly setting some of our

historic surplus aside to best ensure our state is prepared even in times of economic

uncertainty to continue to meet the needs of Wisconsinites in the future.

B. REVENUE AND EXPENDITURE OUTLOOK

The revenue estimates released by the Legislative Fiscal Bureau (LFB) on January 25, 2023,

suggest moderating economic growth. The bureau projects revenues will increase by

$804.9 million (3.9 percent) in the current fiscal year, by an additional $188.5 million

(0.9 percent) in fiscal year 2023-24, and by another $849.6 million (3.9 percent) in fiscal year

2024-25.

The LFB estimates individual income tax revenues will increase by 4.3 percent this year,

further increase by 1.7 percent in fiscal year 2023-24, and increase by another 5.4 percent in

fiscal year 2024-25. Sales tax revenues are expected to increase by 7.2 percent this year,

1.6 percent in fiscal year 2023-24 and 2.4 percent in fiscal year 2024-25. Corporate tax

revenues are projected to decrease by 1.7 percent this year, 2.1 percent in fiscal year

2023-24 and then rebound and increase by 4.2 percent in fiscal year 2024-25.

These pr

ojected increases in overall revenues during the upcoming biennium are

extraordinary as they incorporate the nearly $1.5 billion annually in general fund tax

reductions the Governor has signed into law in his two previous biennial budgets.

Furt

her, Wisconsin has made significant strides in its financial position over the past few

years amid a global pandemic and considerable economic volatility. The state is expected to

end this biennium with a $7.1 billion balance in its general fund. In addition, the state has now

had three consecutive years with a positive Generally Accepted Accounting Principles

(GAAP) balance after 30 consecutive years of running a deficit. The state’s GAAP surplus at

the end of fiscal year 2021-22 was $4.6 billion.

During Governor Evers’ time in office, the state has used surplus revenues to eliminate a

delayed school aid payment and make an unprecedented payment to retire previously issued

debt. In addition, prior to this budget, the state has increased its Budget Stabilization Fund

(“rainy day” fund) to its current record high of $1.73 billion, which is more than five times

larger than what it was in 2018.

In 2021, the state received multiple upgrades on its debt, including receiving a rating of AAA

for the first time since 1982. It has decreased its reliance on bonding by an average of over

$400 million annually over the past three years alone and reduced the state’s general

purpose revenue debt as a percentage of tax revenues in the current fiscal year by one-third.

State transportation revenue bonds have been reduced by over $200 million since 2018.

C. GETTING THINGS DONE BY CONNECTING THE DOTS

Each of the Governor’s biennial budgets has focused on delivering for all Wisconsinites, not

just some of them, while recognizing that every challenge our state faces is connected to

each of the others—something Governor Evers calls “connecting the dots.” This budget

continues the Governor’s efforts, building upon the advice and needs of the people of our

state, recognizing that there is so much more that unites us than there is that divides us, and

working to address our state’s challenges, collectively, head-on.

The Gov

ernor’s budget reflects these beliefs by investing in our kids, our families, our Main

Streets, our neighbors, and our workers. This budget also reinforces that the issues we face

are often interconnected, whether it’s making child care more affordable to help support our

workforce, addressing the climate crisis so that current and future generations of

Wisconsinites can enjoy our natural resources, building infrastructure for the future so

farmers can get product to market and businesses want to stay and develop here, investing

in affordable housing to ensure workers come to Wisconsin and kids have stability at home to

be their best selves in our classrooms, or addressing our state’s burgeoning mental and

behavioral health crisis that could affect our state, our workforce, and our economy for

generations.

For the third consecutive time, the Governor’s 2023-25 biennial budget continues to connect

the dots and keeps us on course in moving Wisconsin forward.

Summary of Governor’s

Major Budget Initiatives

II. SUMMARY OF GOVERNOR’S MAJOR BUDGET INITIATIVES

A. INVESTING IN WHAT’S BEST FOR KIDS

• Ensur

e our kids and educators have the resources they need to succeed by providing an

overall state investment of over $2.64 billion all funds in general and categorical aids for

public schools.

• Of t

his total state investment, provide just over $1 billion GPR over the biennium through the

state’s general equalization aid formula. This is the largest proposed direct investment in

state general school aids since the 1995-97 biennium.

• Prov

ide school districts with the ability to bolster school programming and staffing resources

through a sizable increase in revenue-raising authority. The Governor’s budget provides per

pupil revenue limit increases of $350 in fiscal year 2023-24 and an additional $650 in fiscal

year 2024-25, which are the largest per pupil adjustments since revenue limits were imposed

in fiscal year 1993-94. By coupling this combined increase of $1,000 per pupil over the

biennium with over $1 billion in additional general school aid, the Governor will keep the

estimated gross school levy increase below 1 percent on a statewide basis in both years of

the next biennium.

• Incr

ease the low revenue ceiling by $450 per pupil in fiscal year 2023-24 and an additional

$750 per pupil in fiscal year 2024-25 to increase revenue limit equity among school districts

by providing lower-spending school districts with additional revenue limit authority.

• Prov

ide an increase in per pupil aid of $24 per pupil in fiscal year 2023-24 and an additional

$45 per pupil in fiscal year 2024-25, for a total increase of $46.5 million GPR over the

biennium, which will further assist school districts in addressing many years of highly

restrictive revenue controls.

• Prov

ide $491.4 million GPR in fiscal year 2023-24 and $521.7 million GPR in fiscal year

2024-25 to increase state reimbursement of local special education costs to an historic,

guaranteed 60 percent in both years of the biennium. Prior to the Governor taking office,

special education aid funding was held flat for a decade, while costs increased dramatically

over that same time period.

• Prov

ide $1.6 million GPR in fiscal year 2023-24 and $5.9 million GPR in fiscal year 2024-25

to increase high-cost special education reimbursements. High-cost special education aid

pays a portion of school districts’ eligible special education costs for pupils with specific and

elevated educational needs (defined under current law as 90 percent of costs over $30,000

once other funding sources are considered). These costs currently are reimbursed at only

39.5 percent. The Governor’s budget will increase the reimbursement rate for these costs to

60 percent at the end of the biennium.

• Address the rising number of students experiencing mental health difficulties, and the severity

of their challenges, by providing over $270 million GPR over the biennium to help schools

help kids by making the Governor’s “Get Kids Ahead” initiative a permanent program. This

includes:

o $117.9 m

illion GPR per year for a reformed, comprehensive school-based mental

health services program that ensures predictability of funding through base per pupil

payments rather than the competitive grant process under current law for this

program.

o $18 mil

lion GPR per year to reimburse schools for costs around an expanded list of

school mental health professionals, including social workers, school counselors,

psychologists, and nurses.

o $580,000 GPR in each year for training of school staff in mental health, bullying

prevention, restorative practices, and other evidence-based strategies.

o Perm

itting schools to receive reimbursement of costs associated with mental health

services provided to students through telehealth in the expanded aid programs.

• Creat

e the Healthy Meals, Healthy Kids program by providing $120.2 million GPR in fiscal

year 2024-25 to fully fund school breakfast and lunches for all children, to ensure kids are

prepared for the school day and experience less anxiety about where they might get their

next meal.

• Prov

ide $4.3 million GPR in fiscal year 2023-24 and $4.7 million GPR in fiscal year 2024-25

for school breakfast reimbursement at 15 cents per meal under current law. Eligibility for the

reimbursement is also extended to independent charter schools and state residential schools

operated by the Department of Public Instruction.

• Incent

ivize schools to support Wisconsin’s farmers, food producers, and local economies by

providing $2.75 million GPR in fiscal year 2024-25 for an enhanced 10 cents per meal

reimbursement for meals that include locally sourced foods.

• Make a si

gnificant investment in improving reading and literacy rates for kids statewide by

providing $10 million GPR in each fiscal year for early literacy and reading improvement.

These funds will support comprehensive training for 28 new coaches in literacy and 28 new

professionals in early reading instruction practices.

• Support several organizations that serve kids’ literacy needs by providing: (a) $1.4 million

GPR over the biennium to The Literacy Lab; (b) $1 million GPR in fiscal year 2023-24 and

$2 million GPR in fiscal year 2024-25 to the Wisconsin Reading Corps; and

• Improve schools’ capacity to support English learners by providing: (a) $8.2 million GPR in

fiscal year 2023-24 and $14.2 million GPR in fiscal year 2024-25 to increase reimbursement

of costs for schools with higher concentrations of English learners from 7.9 percent currently

to 20 percent by the end of the biennium; (b) $25,992,000 GPR in each fiscal year for a new

Aid for English Language Acquisition program to serve the more than 22,000 English learners

currently enrolled in schools that are not eligible for aid under the current state bilingual-

bicultural aid program; and (c) $310,500 GPR over the biennium to formalize the process for

Wisconsin English learners to earn a Seal of Biliteracy and to provide support to school

districts that assist students in achieving this seal.

• In order

to enhance the ability of school districts to recruit and retain teachers, provide:

(a) $5 million GPR in fiscal year 2024-25 for grants to support “grow your own” initiatives to

bolster Wisconsin’s educator pipeline, which may include providing current employees with

money to gain additional higher education credits, licenses or certifications; engaging with

community organizations; and supporting student organizations with “future teacher”

missions; (b) $9.4 million GPR in fiscal year 2024-25 to provide stipends to student teachers

and interns; (c) $2 million GPR in fiscal year 2024-25 to provide stipends to teachers who

agree to train and oversee student teachers or interns; and (d) $50,000 GPR in fiscal year

2024-25 for stipends to school library interns.

• Bolst

er our students’ computer science knowledge, including at lower grade levels, by

providing: (a) funding and 1.0 FTE GPR position at the Department of Public Instruction for a

statewide computer science education coordinator; (b) $20,000 GPR in fiscal year 2024-25

for a computer science education task force to be chaired by the new coordinator; and

curriculum, especially around programming concepts, as well as professional development.

The Governor’s budget also includes a requirement that each high school in the state offer at

least one computer science class.

• Prov

ide $2 million GPR per year to Graduation Alliance, which works to reengage students at

risk of not finishing high school.

• Expan

d afterschool offerings by providing $20 million GPR in fiscal year 2024-25 for out-of-

school time grants. Enhanced afterschool offerings from schools and community

organizations will help kids avoid risky and dangerous behavior in the community, keep kids

engaged in their coursework, and receive assistance with their lessons or homework.

• Prov

ide $6.5 million GPR in fiscal year 2024-25 to subsidize the cost of providing driver’s

education to economically disadvantaged students. This program will ensure students learn

necessary skills to safely and responsibly drive on our roads, while increasing students

access to future job opportunities.

• Prov

ide $10 million GPR in fiscal year 2024-25 to the Milwaukee Mathematics Partnership, a

collaboration among the Milwaukee Public Schools district, University of Wisconsin-

Milwaukee, and Milwaukee Area Technical College focused on consistent implementation of

mathematics curriculum and providing related professional development for current and

aspiring Milwaukee teachers.

• Prov

ide $742,500 GPR in each year for Wisconsin Literacy to conduct adult literacy activities,

including expert trainings, personalized consultations, and workforce connections.

• Provide $2.5 million GPR in each year for a new “Do the Math” personal financial literacy

initiative to help schools start or improve programs around financial literacy curriculum with

an emphasis on innovative instruction.

• Provide $630,200 GPR in each year to fully fund sparsity aid payments to continue to

address the specific needs of rural school districts.

• Prov

ide $7.5 million GPR in each year, a total biennial increase of $15 million GPR, to

significantly increase state support for school districts with high per pupil transportation costs.

• Provide $500,000 GPR in fiscal year 2024-25 to pay General Education Development (GED)

testing costs to increase high school equivalency attainment and open doors to employment

or postsecondary opportunities. Over half of GED test inquiries received by the Department

of Public Instruction are from economically disadvantaged individuals; this subsidy will

increase equity in high school diploma achievement.

• Provide $704,000 GPR over the biennium to continue support for contract costs related to

academic and career planning for pupils in grades 6-12.

• Requi

re every school in the state to have opioid antagonists on hand in the event of a

suspected opioid drug overdose.

• Bols

ter Wisconsin’s workforce and pipeline with experienced professionals by authorizing

state agencies and local units of government, including our schools, to rehire a retired

annuitant to address workforce recruitment and retention issues, if: (a) at least 30 days have

passed since the employee left employment; (b) at the time of retirement, the employee does

not have an agreement to return to employment; and (c) upon returning to work, the

employee elects to not become a participating employee and continue receiving their annuity.

In particular, this will make it easier to hire experienced educators and school staff and will

help keep class sizes small and improve student outcomes.

• Create a grant program administered by the Department of Public Instruction to reimburse

expenses incurred by school districts that choose to change race-based mascots and logos,

funded at $200,000 in Tribal gaming revenue per year.

• Prov

ide $24,100 in fiscal year 2023-24 and $49,400 in fiscal year 2024-25 in Tribal gami

evenues to increase Wisconsin Grants for Tribal college students by 5 percent in the first

year and an additional 5 percent in the second year.

• P

rovide $243,600 GPR in each year of the biennium to the Department of Natural Resources

to provide fee waivers for annual admissions receipts to state parks for the families of fourt

aders.

• I

ncrease access to quality, affordable child care for Wisconsin children by continuing th

uccessful Child Care Counts program, providing $81 million GPR in fiscal year 2023-24 an

$221

million GPR in fiscal year 2024-25, and $19 million TANF in each fiscal year t

per

manently establish Child Care Counts as the state’s ongoing child care quality

improvement program.

• Provide $53,459,800 TANF in fiscal year 2023-24 and $71,279,700 TANF in fiscal year

2024-25 to migrate to a full-time/part-time model for calculating Wisconsin Shares subsidies

to align with federal child care funding requirements. This includes waiving copayments for

the state’s highest need families under 100 percent of the federal poverty level.

• P

rovide $11,198,000 GPR annually to continue funding the Partner Up! Program to support

partnerships between businesses who purchase child care slots for their employees and child

care providers.

• P

rovide $5 million TANF in each fiscal year for a New Provider grant program, which provides

grants to newly certified or licensed child care providers to help encourage an increase in th

upply of quality child care providers in the state. Specifically reserve $500,000 of progr

unding to support newly certified and licensed providers in Tribal areas.

• P

rovide $875,000 TANF for Tribal child care contracts to support recruitment, retention, a

pansion of child care providers in Tribal areas.

• Provide $1,680,000 all funds to support the creation of a quality early childhood educatio

enter in the city of Milwaukee.

• Continue current funding to support quality and affordable child care in economically

disadvantaged areas within the city of Milwaukee.

• Provide $1,421,300 over the biennium to migrate the child care provider licensing application

process to an online process.

• Increase funding to the Boys and Girls Clubs by $500,000 TANF in each year for t

isconsin After 3 program to improve literacy skills and math proficiency for low-inc

ome

tudents. Additionally, provide $1,300,000 GPR annually to support youth mental health

and

substance use prevention.

• Provide $1,327,200 TANF in fiscal year 2023-24 and $1,963,900 in fiscal year 2024-25 for

social-emotional training and technical assistance in child care settings with the goal of

reducing instances of children being removed from daycare for behavioral issues.

• Provide $600,000 TANF in each fiscal year to disregard $10,000 of income for direct car

orkers when applying for Wisconsin Shares benefits.

• Help offset the high cost of child care and dependent care by increasing the Wisconsin match

percentage of the federal child and dependent care tax credit from 50 percent to 100 percent,

providing nearly $30 million in tax relief in fiscal year 2023-24 and $27.8 million in tax relief i

iscal year 2024-25 to approximately 107,000 Wisconsin taxpayers.

• Incr

ease the Wisconsin percentage of the federal Earned Income Tax Credit from 4 percent

to 16 percent for filers with one qualifying child and from 11 percent to 25 percent for filers

with two qualifying children, providing $60.7 million in tax relief in fiscal year 2023-24 and

$63.8 million in tax relief in 2024-25.

• Provide $392,000 GPR, and $206,200 PR-F in fiscal year 2023-24 and $784,100 GPR and

$412,300 PR-F in fiscal year 2024-25 to increase foster care age-based rates by 5 percent

and allow foster care level one providers to receive the age-based rates. Further, provide

$8,264,700 TANF in fiscal year 2023-24 and $16,482,300 TANF in fiscal year 2024-25 to

allow kinship care providers to receive the age-based rates.

• Provide $6,100 GPR, $3,300 PR-F, and $171,600 TANF in fiscal year 2023-24 and

$6,700 GPR, $3,600 PR-F, and $342,100 TANF in fiscal year 2024-25 to allow foster care

level one and kinship care providers to qualify for the sibling exceptional rate and one-time

clothing payments.

• Increase kinship care funding by $7,826,700 TANF in fiscal year 2023-24 and

$9,661,300 TANF in fiscal year 2024-25 to expand eligibility for kinship caregiving to others

such as like-kin caregivers.

• Provide $8,259,400 GPR in fiscal year 2023-24 and $8,237,100 GPR in fiscal year 2024-25

for additional kinship care program support, including flexible support payments to caregivers

and family search services for child welfare agencies.

• Modify statutes to allow additional payments to kinship care providers if funds are made

available during an emergency.

• Provide $395,800 all funds in fiscal year 2023-24 and $436,000 all funds in fiscal year

2024-25 to reimburse Tribal Nations for subsidized guardianship placements as the state

currently does with counties.

• Enable the Department of Children and Families to conduct congregate care provider training

by providing $200,000 GPR annually, continuing the one-time funding in the 2021-23 biennial

budget.

• Add state support for Tribal family services and to offset the high cost of Tribal out-of-home

care placements by providing $3,825,000 GPR in fiscal year 2023-24 and $4,100,000 GPR in

fiscal year 2024-25.

• Provide $1,505,100 GPR, $268,800 TANF, and $913,800 PR-F in each fiscal year for one-

time improvements to the eWiSACWIS child welfare data system. The Governor further

recommends that a portion of that funding be ongoing into the next biennium, equivalent to a

10 percent increase to base funding, to fund additional projects and support of the system.

• Provide $4,381,000 GPR in fiscal year 2023-24 and $11,082,000 GPR in fiscal year 2024-25

to improve the continuum of care in the Milwaukee child welfare system with stabilization

centers, aftercare services, mental and behavioral health services, and a Qualified

Residential Treatment Program.

• Increase Milwaukee child welfare operations funding by $484,600 GPR and $26,300 PR-F in

fiscal year 2023-24 and $767,900 GPR and $35,000 PR-F in fiscal year 2024-25, including

5.0 FTE all funds positions for case aides, performance monitors, and staff to support on-site

child care for children removed from their homes.

• Modif

y Milwaukee child welfare prevention services by replacing current TANF funding with

an equivalent amount of GPR to allow for more flexible use of the funding. In addition,

expand funding to support respite child care services for a total of $4,398,000 GPR

and -$4,031,900 TANF in fiscal year 2023-24 and $4,764,100 GPR and -$4,031,900 TANF in

fiscal year 2024-25.

• Provide $75,000 GPR grants in each fiscal year to provide siblings who have been separated

in adoption with opportunities to be reunited, such as at summer camps.

• Increase funding in the Bureau of Youth Services by $2,020,000 GPR in each year to

increase services in runaway and homeless youth programming.

• Expand independent living services to youth, including Tribal youth with an additional

investment of $3,852,500 GPR in each fiscal year.

• Support family resource centers across the state by providing $4,150,000 GPR in each fiscal

year.

• Expand home visiting services to approximately 24 additional counties and Tribes with

$1,200,000 GPR in fiscal year 2023-24 and $3,896,000 GPR and $104,000 PR-F in fiscal

year 2024-25.

• Provide $1,820,000 GPR in fiscal year 2023-24 and $3,640,000 GPR in fiscal year 2024-25

for behavioral and mental health services for youth as part of a larger initiative to provide a

continuum of care for families in Milwaukee involved with the child welfare system.

• Incr

ease domestic abuse base funding by approximately 50 percent in each fiscal year with

$6,217,300 GPR and continue the domestic abuse Living Independently Through Financial

Empowerment (LIFE) program with $14,000,000 GPR in each fiscal year.

• Increase funding by $14,705,900 all funds in each fiscal year to child support agencies to

improve collection of delinquent child support in the state.

• Create a child support debt reduction program and provide $3,472,000 TANF in fiscal year

2023-24 and $6,944,000 TANF in fiscal year 2024-25 to assist low-income noncustodial

parents participating in a work program with paying child support arrears.

• Provide $7,163,700 all funds in fiscal year 2023-24 and $20,517,200 all funds in fiscal year

2024-25 to support the continuation of the Child Support Modernization IT project to

implement an improved system for Wisconsin to continue meeting federal performance

standards and more quickly and easily accommodate changes in the child support

landscape.

• Support critical cybersecurity activities with $1,185,800 GPR in each fiscal year to ensure the

continued integrity and protection of child welfare and child care data.

• Increase funding for the Department of Children and Families’ Office of Legal Counsel, by

$246,100 all funds in fiscal year 2023-24 and $328,100 all funds in fiscal year 2024-25 to

support 2.0 FTE positions to meet increasing demands.

• Provide $250,000 TANF in each fiscal year, coupled with a match requirement, to expand the

Families and Schools Together (FAST) program.

• Provide $187,200 TANF in each fiscal year to fund a contractor position to conduct a pilot

program, known as the Housing, Opportunity, Planning and Empowerment (HOPE) program,

to provide financial literacy and empowerment services to families receiving W-2 benefits.

B. STRENGTHENING OUR ECONOMY & FUTURE WORKFORCE

• Support Wisconsin families by modifying and expanding the Wisconsin Family Medical Leave

Act (FMLA) as follows: (a) permit leave to be taken to care for a grandparent, grandchild, or

sibling with a serious health condition; (b) expand the definition of “qualifying exigency” to

include deployment of a spouse or child, and an unforeseen or unexpected closure of a

school or child care facility; (c) expand the definition of “serious health condition” to include

medical quarantine to allow workers to take FMLA leave when under a medical quarantine or

caring for someone under quarantine, regardless of whether the person is exhibiting

symptoms; (d) reduce the number of hours an employee is required to work before qualifying

to 680, instead of 1,000; and (e) extend the statute of limitations for filing a FMLA complaint

to 300 days, instead of 30 days.

• Furt

her support Wisconsin families by implementing paid family and medical leave for both

public and private sector workers. Workers who qualify for FMLA would be entitled to

12 weeks of benefits for any of the reasons described in the preceding bullet point. On a

long-term basis, private sector benefits will be supported by employer and employee payroll

contributions; however, to effectuate this groundbreaking benefit as quickly as possible, the

state will transfer $158.9 million from the general fund to a new, related trust fund to support

initial benefit payments as the new fund builds a balance. Additionally, the state will support

the 2023-25 administrative costs of the program by transferring an additional $84.5 million

from the general fund into the new fund and provide 198.0 FTE SEG positions over the

biennium.

• Expan

d the Transitional Jobs and Transform Milwaukee Jobs programs by providing an

additional $1.7 million TANF in each fiscal year, removing the requirement that individuals are

unemployed for at least four weeks before being eligible, and allowing individuals who are

eligible for unemployment insurance (UI), but not receiving UI benefits, to participate in the

program.

• Provide $500,000 TANF in each fiscal year to expand the Jobs for America’s Graduates-

Wisconsin program to provide educational support and job or postsecondary readiness for

TANF-eligible youth.

• Prov

ide $10 million GPR annually beginning in fiscal year 2023-24 to increase the Wisconsin

Economic Development Corporation’s block grant on an ongoing basis to $51,550,700,

supporting economic development opportunities across Wisconsin.

• Prov

ide $40 million GPR on a one-time basis to the Wisconsin Economic Development

Corporation as temporary additional assistance to support continued economic recovery

efforts throughout Wisconsin.

• Prov

ide $5 million GPR annually to support the Wisconsin Economic Development

Corporation in its talent attraction and retention efforts, including coordination with industry

partners, to help address the state’s long-term workforce needs.

• Provide a major $200 million GPR investment to continue the Workforce Innovation Grant

Program at the Department of Workforce Development, with $100 million allocated

specifically for enhancing the state’s health care workforce. The program will support the

development of long-term, locally based solutions for businesses to locate and train workers,

resulting in individuals gaining new skills and higher wages and helping employers address

labor shortages. The grant program was previously funded with federal funding received by

the state under the American Rescue Plan Act of 2021.

• In ad

dition, provide $4.5 million GPR in one-time dollars to fund the Reengaging Out-of-Work

Barriered and Underserved Individuals through System Transformation (ROBUST) Pilot

Program to help find methods to more effectively reach and serve population groups that are

underserved and disconnected from the labor force.

• Provide $12 million GPR for the continuation of the Worker Advancement Initiative, which

provided assistance to individuals whose employment was eradicated due to the pandemic.

This initiative was previously funded with $20 million of federal funding received by the state

under the American Rescue Plan Act of 2021.

• Addi

tionally, provide $5 million GPR in additional funding for the Worker Advancement

Initiative to support efforts by technical colleges and nursing schools to reduce barriers to

graduation and assist students in becoming career ready.

• Prov

ide state funding to workforce development boards to support services for youth, which

generally are not supported by federal workforce grants. Over the biennium, $8.8 million GPR

will enhance greater in-school and out-of-school services including employment counseling

and work experiences for kids.

• Help

prepare individuals who are currently incarcerated for post-prison employment by

providing almost $900,000 GPR and 6.0 FTE GPR positions over the biennium for staffing at

correctional institutional job centers.

• Prov

ide 3.0 FTE GPR positions and $709,800 GPR to increase Job Centers of Wisconsin

staffing and expand the number of individuals who receive services and ultimately obtain

family-supporting employment.

• As recommended by the Blue Ribbon Commission on Veteran Opportunity, provide

$450,000 GPR annually to assist employers that hire veterans who are transitioning to civilian

life. The funding will help employers provide training and wraparound services to veterans.

• Incr

ease the state’s healthcare workforce by providing to the Department of Workforce

Development: (a) $500,000 GPR on a one-time basis to support healthcare profession

apprenticeship curriculum development; (b) $200,000 GPR on a one-time basis to implement

licensed practical nurse apprenticeships at state-run care facilities; and (c) $236,600 GPR

and 1.0 FTE GPR position over the biennium for outreach to potential stakeholders and

partners and to develop new collaborations related to healthcare workforce.

• Provide 2.0 FTE GPR positions at the Department of Workforce Development to serve as

dedicated staff for vocational rehabilitation self-employment customers.

• Prot

ect migrant laborers by providing 3.0 FTE GPR positions to perform housing inspections

at migrant labor camps, provide greater outreach to migrant workers and develop outreach

plans, conduct prevailing wage and practice surveys, and investigate complaints and

potential violations to state migrant worker protections.

• Ensur

e safety at public works job sites by providing 3.0 FTE GPR positions to conduct

outreach and inspections related to enforcement of state standards regarding substance use

disorders.

• Dramat

ically enhance pathways to information technology careers by providing

$9 million GPR in one-time funding to expand registered apprenticeship within the information

technology sector in southeast Wisconsin.

• Prov

ide an additional $200,600 GPR annually to supplement federal employment

demonstration projects to fund community action agencies and organizations.

• Encour

age individuals to follow conservation and environmental career paths by providing

$1 million GPR annually under the Wisconsin Fast Forward framework for training in green

jobs.

• E

stablish a clean energy and reemployment program with $5 million annually GPR to connect

workers with employers that will utilize apprenticeship and technical college programs t

del

iver training for clean energy jobs.

• P

rovide $2 million GPR in fiscal year 2023-24 to establish a Southeast Wisconsin Green Jobs

Corps Pilot Program to encourage young adults facing barriers to employment to enter

energy efficiency, conservation, and environmental job sectors.

• Provide the largest increase in general aid ever to the Wisconsin Technical College System

by investing $32.9 million GPR in each year of the biennium. This increase means general

aid will exceed inflation-adjusted pre-2011 appropriation levels and will provide the necessary

resources to allow the system to expand the state’s talent pipeline and grow Wisconsin’

killed workforce.

• Bolster Workforce Advancement Training grants awarded by the Wisconsin Technical

College System by providing an additional $3.5 million GPR over the biennium for skilled

orker training. These grants are in high demand and additional resources will help provid

e a

elief valve for the employer demand for skilled talent.

• Provide $3 million GPR over the biennium to provide grants to technical colleges to create

open educational resources and course materials, which will help to address the rising cost of

educational materials such as textbooks for students.

• P

rovide $2 million GPR annually to technical colleges in order to offset the costs associated

with providing transcripted credit to high school students in health sciences and to encoura

the expansion of health sciences-related offerings.

• P

rovide $250,000 GPR annually for capital equipment and supplies, information technology

equipment, and equipment for student learning infrastructure and to support staffing at a new

Advanced Manufacturing, Engineering Technology, and Apprenticeship (AMETA) Center at

Mid-State Technical College.

• I

n addition, provide $250,000 GPR annually for the Wisconsin Institute for Sustainabl

echnology (WIST) at the University of Wisconsin-Stevens Point to broaden its technical

contributions and support to reinforce the well-being of the Wisconsin forest and paper

industries.

• P

rovide $700,000 GPR over the biennium to jumpstart the Farm and Industry Short

Course (FISC) 2.0 program based at the University of Wisconsin-River Falls, in partnershi

ith multiple other University of Wisconsin System schools and stakeholder groups.

• P

rovide $2.5 million GPR on a one-time basis for equipment and supplies to support t

reation of a regional emergency medical services training facility in Baraboo thro

ugh

Mad

ison College.

• Provide $2 million all funds annually of additional funding to Wisconsin’s navigator program to

regularly engage industry partners and help assisted living, nursing homes, home health

agenc

ies, and other providers inform new workers about HealthCare.gov and help workers

understand eligibility for tax credits and subsidies available in the healthcare marketplace.

• Strengthen workers’ voices in their workplaces by repealing the prohibition on contracts

between labor unions and employers that specify employers may only hire unionized workers

and repeal the prohibitions on the following as a condition of obtaining or continuin

emp

loyment: (a) refraining or resigning from membership or affiliation with a labor

organization; (b) becoming or remaining a member of a labor organization; (c) paying dues or

other amounts to a labor organization; or (d) paying a third party amounts in place of dues t

a l

abor organization.

• Inc

rease the state minimum wage for general workers to $8.25 on or after the effective date

of the budget bill and prior to January 1, 2025; to $9.25 on or prior January 1, 2026; to $10.25

on or after January 1, 2026; and finally, by the change in the consumer price index for each

year thereafter. In addition, create a task force to study options for achieving a statewide

minimum wage of $15 per hour.

• Require employers conducting projects of public works, both state and local, to pay workers

the hourly wage and benefits paid to most workers in the project’s area, commonly known as

prevailing wage.

• Expan

d the concept of employment discrimination to specify that employers cannot

discriminate based upon gender identity and expression.

• Str

engthen the enforcement of employment discrimination law prohibitions by allowing the

Department of Workforce Development, or an individual who is alleged or was found to have

been discriminated against, including on the basis of equal pay for equal work, or subjected

to unfair honesty or genetic testing, to bring an action in circuit court to recover compensatory

and punitive damages caused by an act of discrimination, unfair honesty testing, or unfair

genetic testing in addition to or in lieu of filing an administrative complaint.

• Proh

ibit employers from requiring compensation history of current and prospective

employees and prohibit discrimination against employees who choose not to disclose

information on compensation.

• Establish collective bargaining rights for state and local government frontline workers and

their bargaining units. Frontline workers are defined as employees with a substantial portion

of job duties interacting with members of the public or large populations. The Wisconsin

Employment Relations Commission would settle definitional disputes.

• Eliminate the annual recertification requirement for state and local government bargaining

units, as well as the provision that approval by a majority of bargaining unit members, instead

of majority of the vote, is required to certify.

• Require employers to meet at least quarterly, or upon change in policies affecting wages,

hours, and working conditions of general employees, with certified representatives of

collective bargaining units if applicable or with other representatives in order to receive

employee input.

• Provide two additional positions at the Wisconsin Employment Relations Commission to

assist employees, bargaining units and units of government with the expansion of collective

bargaining rights.

• Require local government employers to include a just cause standard of review of termination

in their grievance procedures. Additionally, require existing local government grievance

procedures to address employee discipline and workplace safety issues.

• Requi

re an additional impartial hearing officer from the Wisconsin Employment Relations

Commission to oversee employee grievance hearings.

• The Governor’s budget includes funding in the compensation reserve, and any statutory

language changes needed for the following items to make investments in the state

government’s workforce, address recruitment and retention challenges in key state positions,

and ensure the state can be a competitive employer. The state’s compensation plan will also

have to be approved by the Joint Committee on Employment Relations:

o Prov

ide $415.7 million GPR over the biennium for a general wage adjustment for

most state employees of 5 percent on July 1, 2023, and an additional 3 percent on

July 1, 2024.

o Provide $39.7 million GPR over the biennium for targeted market and parity wage

adjustments for employees within certain classifications in state agencies to better

align their wages to those paid by private and other public sector employers.

o Prov

ide $4.3 million GPR over the biennium to support development of a

semiautomatic pay progression for many classifications that will allow employees to

increase pay based on performance and experience.

o Prov

ide $2.1 million GPR over the biennium to support market and parity wage

adjustments for employees within information technology classifications to better

align their wages to those paid by private and other public sector employers.

o Provide $269,000 GPR over the biennium to support a pay progression for wardens

at the Department of Natural Resources and Capitol Police within the Department of

Administration.

o Prov

ide $18.9 million GPR over the biennium to support a pay progression for

probation and parole agents within the Department of Corrections.

o Enhanc

e the pay structure for correctional officers, sergeants, psychiatric care

technicians, and youth counselors at the Department of Corrections and the

Department of Health Services to address critical recruitment and retention needs. In

total, this budget provides $327.6 million GPR over the biennium to address

compensation issues within these critical areas, including:

 $261.2 million GPR over the biennium to: (a) continue and roll into the

employee’s base hourly wage the $4/hour add-on for all security staff,

including supervisors, within these classifications and (b) support an

enhanced pay progression for these classifications. As a result, starting

hourly pay would increase from $20.29 to $33, increasing to $39 per hour for

correctional officers with 25 or more years of experience.

 $30.5 mi

llion GPR over the biennium to continue the $5/hour add-on for

security staff working at correctional institutions with vacancy rates greater

than 40 percent.

 $24.6 million GPR over the biennium to increase the existing add-on for

correctional staff at the Department of Corrections working in maximum

security institutions from $2/hour to $4/hour. This provision also provides

staff working at maximum security facilities within the Department of Health

Services with the $4/hour add-on.

 $8.1 mi

llion GPR over the biennium to support a $1/hour add-on for

correctional staff working in medium security institutions.

 Prov

ide $3.2 million GPR over the biennium to support add-ons for

supervisors of employees in maximum and medium security institutions.

o Prov

ide funding to support the continuation of pilot add-ons implemented by the

Division of Personnel Management within the Department of Administration to

address critical recruitment and retention needs within specific classifications at

several state agencies, including:

 $3.7 mi

llion GPR over the biennium to the Department of Health Services to

support add-ons for respiratory therapists, income maintenance specialists,

disability program associates, disability determination supervisors, and

several nursing classifications.

 $3.6 mi

llion GPR over the biennium to the Department of Corrections to

support add-ons for several nursing classifications.

 $6.7 mi

llion in non-GPR funding to the Department of Veterans Affairs to

support add-ons for several nursing classifications.

 $2.3 mi

llion in non-GPR funding collectively to the Department of

Administration, Department of Safety and Professional Services, and

Department of Military Affairs to support add-ons for Capitol Police, licensing

staff and office operations associates, and military security officers.

o Prov

ide $34.1 million GPR over the biennium to support a new paid family and

medical leave program for state and University of Wisconsin System employees for

12 weeks annually.

o Decr

ease the waiting period for all new state employees to receive the employer

share of their health insurance premiums from three months to one month.

o Fund pai

d sick leave for limited term employees that work for state agencies.

o Modif

y the vacation allowance during the first five years of state employment to

improve retention of employees for state agencies.

o Est

ablish Juneteenth and Veterans Day as holidays for all of state government.

• Provide $93.9 million GPR in fiscal year 2023-24 to adjust agency compensation budgets to

reflect an additional biweekly payroll.

• Provide funding and position authority to the Division of Personnel Management within the

Department of Administration to support human resources and payroll functions associated

with the development of the Wisconsin Paid Family and Medical Leave Program within the

Department of Workforce Development and the paid family and medical leave program that

will be developed for state and University of Wisconsin System employees.

• Creat

e a small business retirement savings program for privately employed individuals who

are not currently eligible for an employer-sponsored retirement plan to help fill the retirement

savings gap that is most acute for the employees of small businesses. Allocate $2 million

GPR in one-time funding for program start-up costs. The Small Business Retirement Savings

Board, attached to the Department of Financial Institutions, will have oversight of this new

program and will be empowered to contract with a vendor to administer the retirement

program. The program will target businesses with 50 or fewer employees and enhance the

long-term finances of Wisconsin workers.

• Conti

nue the Rural Wisconsin Entrepreneurship Initiative which aims to develop

entrepreneurial activity throughout rural areas of Wisconsin through education, training,

research, and technical assistance to small businesses and entrepreneurs, economic

development practitioners, and communities by providing the University of Wisconsin-

Madison Division of Extension with $254,100 GPR and 2.0 FTE GPR positions in fiscal year

2024-25.

• Bols

ter local communities with $25 million GPR annually beginning in fiscal year 2023-24 to

continue state support of the Main Street Bounceback Grant program. The Wisconsin

Economic Development Corporation will use these funds to continue the Governor’s

successful efforts aimed at restoring business occupancy in vacant commercial spaces.

Program funding for the Main Street Bounceback Grant program had previously been

provided through federal assistance received by the state under the American Rescue Plan

Act of 2021.

• Spur

economic growth through entrepreneurship by creating a venture capital program

located at Wisconsin Economic Development Corporation with $75 million in one-time GPR

funding in a continuing appropriation in fiscal year 2023-24. The program will be required to

be a fund of funds investment program aimed at enhancing the vibrancy of Wisconsin’s

venture capital ecosystem.

• F

urther encourage investments in entrepreneurship by removing the requirement that t

adger Fund of Funds program repay its initial investment from the state and inste

continue to reinvest those funds as they are returned from current investments.

• Encourage investment in research and development by Wisconsin businesses through

increasing the refundable share of the research credit from 15 percent to 50 percent

beginning with tax year 2024. This will reduce taxes on businesses engaging in research an

dev

elopment by $16.1 million in fiscal year 2023-24 and $64.4 million annually beginning i

fiscal year 2024-25.

• P

romote the development of cooperative networks in Wisconsin by requiring the Wisconsi

conomic Development Corporation to allocate $500,000 over the biennium from its availabl

unds to support feasibility studies and other technical support and implementation efforts.

• E

ncourage growth in wages by raising the wage thresholds under the Enterprise Zone Jobs

Tax Credit and the Business Development Tax Credit to account for inflationary pressures

ages.

• P

romote Wisconsin as a premier business, cultural, and recreational destination by providi

a r

ecord investment of $33.6 million GPR over the biennium to the Department of Tourism for

marketing activities.

• Expand the state’s growing outdoor recreation market by providing $1.1 million GPR and

3.0 FTE GPR positions over the biennium to make the Department of Tourism’s Office of

utdoor Recreation a permanent hub for outdoor partners, brands, and industry.

• R

ecruit large-scale events to Wisconsin by creating and funding an opportunity and attracti

und with $30 million GPR over the biennium. This substantial investment to help showcas

everything Wisconsin has to offer will reap significant benefits for local and regional

businesses and workers, Main Streets and the statewide economy.

• C

reate a new Meetings, Conventions, and Sports Bureau within the Department of Tourism,

supported by $2.7 million GPR and 2.0 FTE GPR positions over the biennium, to focus

omoting the state as a destination for large company meetings, conventions, and sporti

events.

• P

rovide $1,883,200 GPR in fiscal year 2023-24 and $1,000,000 GPR in fiscal year 2024-

or the Wisconsin Initiative for Agricultural Exports to help build Wisconsin’s agricultural br

and

n international markets and increase agricultural exports.

• Provide $100,000 GPR in each year for grants to help farms hire business consultants t

amine their farm business plans.

• Provide an additional $800,000 GPR in each year to increase the available funding for the

Dairy Processor Grant program.

• Create the Value-Added Agriculture Grant program with $400,000 GPR in each year. The

program will help farmers expand agricultural practices that produce value-added products.

• C

reate the Farm to Fork Grant Program with $200,000 GPR in each year. The program will

connect nonschool entities that operate cafeterias with local farmers to purchase locally

grown food.

• Provide a one-time infusion of $200,000 GPR in each year into the Something Special from

Wisconsin® program.

• Pr

ovide an additional $800,000 GPR in each year to increase the available funding for the

Meat Processor Grant program.

• Make the Meat Talent Development Grant program permanent with $1,237,500 GPR in fiscal

year 2024-25 to support meat industry workforce development needs by providing funds for

curriculum development and tuition assistance to individuals pursuing meat processing

programming at Wisconsin universities, colleges, and technical schools.

• Convert 4.0 FTE GPR project positions that were approved in the 2021-23 biennial budget to

permanent positions for the meat inspection program at the Department of Agriculture, Trade

and Consumer Protection. Also provide $476,900 GPR in each year for supplies and services

related to meat inspections.

• Provide $74,300 GPR in fiscal year 2023-24, $93,200 GPR in fiscal year 2024-25, and

1.0 FTE GPR agricultural economist position at the Department of Agriculture, Trade and

Consumer Protection.

• Create a biennial agricultural assistance appropriation to fund various farmer and producer-

focused grant programs. This single appropriation will allow the Department of Agriculture,

Trade and Consumer Protection to direct resources in an efficient and effective manner to

help grow Wisconsin’s agricultural economy.

• Provide $15 million GPR in each year for grants to nonprofit food assistance agencies to

combat food insecurity and purchase Wisconsin made or grown agricultural products.

• Provide $2 million Tribal gaming revenues each year for a Tribal Food Box program to

support producers and those requiring sustainable food in Tribal Nations.

• Increase Tribal gaming funding for Native American economic development technical

assistance administered by Department of Administration by $40,500.

• Replace $8,967,100 Tribal gaming revenues for tourism marketing with an equal amount of

GPR and replace $1,309,500 Tribal gaming revenues for snowmobile enforcement with an

equal amount of conservation SEG funds.

• Prov

ide to the Department of Safety and Professional Services $2,966,100 PR in fiscal

year 2023-24 and $3,212,300 PR in fiscal year 2024-25 to support technology infrastructure

upgrades and automation which will bring efficiencies to the department.

• Ensure that the Department of Safety and Professional Services can provide efficient and

effective processing of license applications that helps bolster our state’s workforce and our

economy by increasing the agency’s expenditure authority by $968,700 PR in fiscal year

2023-24 and $1,246,900 PR in fiscal year 2024-25. The increased authority will support

16.0 FTE PR positions in each year, who will ensure quick and efficient review at all stages of

the credential application process and allow qualified applicants to gain employment quickly,

in turn providing skilled workers and necessary services in the state’s economy.

• Meet substantially increased public demand for licensed occupation assistance in the

Department of Safety and Professional Services’ professional credential processing customer

service center by providing increased spending authority of $793,000 PR in fiscal year

2023-24, $1,018,300 PR in fiscal year 2024-25, and 14.0 FTE PR permanent positions. This

increase will provide the staffing needed to best serve applicants and bolster the safety and

economic wellbeing of the state.

• All

ow the Department of Safety and Professional Services to provide scheduled plan review

services to better serve the design-build industry. Scheduled plan reviews place construction

projects on the agency’s review calendar early in the project time line so that review is

accomplished in a timely and efficient manner. To effectuate scheduled plan review, provide

7.0 FTE PR permanent positions and increased expenditure authority of $470,300 PR in

fiscal year 2023-24, $610,200 PR in fiscal year 2024-25.

• Reduce

building plan review and approval time lines to improve customer satisfaction at the

Department of Safety and Professional Services by providing plan review within four weeks

by providing 14.0 FTE PR permanent positions and increased expenditure authority of

$972,500 PR in fiscal year 2023-24, $1,263,000 PR in fiscal year 2024-25.

• Incr

ease the Department of Safety and Professional Services’ capability to provide one-week

plan review of certain small and common building plans by providing 4.0 FTE PR permanent

positions and increased expenditure authority of $270,000 PR in fiscal year 2023-24 and

$350,200 PR in fiscal year 2024-25.

• Str

eamline the Department of Safety and Professional Services’ credentialing process and

make it more efficient by helping individuals, employers, and higher education institutions

better understand the application and approval process, including standard application

requirements and requirements for those applicants with unique circumstances. Provide

2.0 FTE PR permanent positions and increased expenditure authority of $113,200 PR in

fiscal year 2023-24 and $143,000 PR in fiscal year 2024-25, to support these efforts. Similar

efforts to simplify application processes undertaken by the Evers Administration at the

Department of Workforce Development have yielded positive results in both customer

satisfaction and efficient application review.

• Prov

ide resources at the Department of Safety and Professional Services for training and

oversight to increase the number of delegated municipalities for commercial plan review and

inspection functions. This will ensure consistent application of building code standards across

the state. Increase expenditure authority by $70,800 PR in in fiscal year 2023-24 and

$90,400 PR in fiscal year 2024-25, and provide 1.0 FTE PR permanent position.

• Enhanc

e the Department of Safety and Professional Services’ presence for building plan and

related inspections through increased outreach and training related to code compliance and

inspection standards. Provide increased spending authority of $315,300 PR in fiscal year

2023-24, $408,300 PR in fiscal year 2024-25, and 5.0 FTE PR permanent positions to

support such outreach and training.

• Prov

ide the Department of Safety and Professional Services with increased spending

authority of $100,000 PR in fiscal year 2023-24 to develop an assured provider pilot program

to modernize the continuing education certification process for realtors.

• Acc

elerate the license review process by providing the Department of Safety and

Professional Services and affiliated credentialing boards with the authority to investigate

whether the circumstances of an arrest, conviction, or other offense are substantially related

to the circumstances of the license activity without specifically reviewing certain types of

violations.

• Enhanc

e licensure opportunity and portability in Wisconsin through increased participation in

multistate compacts, reciprocity agreements, including for Deferred Action for Childhood

Arrivals (DACA) recipients and undocumented individuals who wish to obtain professional

licenses, and integration of internationally trained professionals. Provide the Department of

Safety and Professional Services with increased expenditure authority of $341,200 PR in

fiscal year 2023-24, $434,900 PR in fiscal year 2024-25, and 5.0 FTE PR permanent

positions to support licensure portability.

• Provide $500,000 PR in each year of the biennium to make the trade exam process at the

Department of Safety and Professional Services more efficient by moving from a manual

process to an online, electronic platform.

• Ensure continued modernization of Department of Safety and Professional Services

information technology by providing increased expenditure authority of $580,000 PR in fiscal

year 2023-24 and $520,000 PR in fiscal year 2024-25 to work with the Department of

Administration Division of Enterprise Technology. Also, provide $2,966,100 PR in fiscal year

2023-24 and $3,212,300 PR in fiscal year 2024-25 to maintain system platform subscriptions

and customer-facing services including electronic permit services, license application review,

and call center flexibility.

• Conti

nue to fund the successful youth firefighter training grant program and increase the

number of volunteer firefighters in the state by providing $100,000 PR in each year of the

biennium to the Department of Safety and Professional Services.

• Prov

ide $20,000 PR annually to the Department of Safety and Professional Services to

support the awarding of funds for environmentally sound disposal of abandoned

manufactured homes, and critical repairs to low income, elderly or disabled homeowner

occupied manufactured homes.

• All

ow the Department of Safety and Professional Services to keep all fees paid for credentials

and other department approvals to be used for licensing, rule-making, and regulatory

functions of the department.

• All

ow the Department of Safety and Professional Services to adjust credential renewal

schedules to better align with industry needs.

• Conti

nue information technology modernization at the Higher Educational Aids Board

including cloud hosting, software maintenance, support and contingency, upgrades, and

additional enhancements by providing $712,800 GPR in fiscal year 2023-24, $752,100 GPR

in fiscal year 2024-25, and 2.0 FTE GPR permanent positions that will serve as portal and

application software administrators.

• Improve affordability for college students by increasing funding for need-based financial aid in

the Wisconsin Grants program as follows: (a) $3,094,800 GPR in fiscal year 2023-24 and

$6,344,300 GPR in in fiscal year 2024-25 for University of Wisconsin System students;

(b) $1,148,600 GPR in fiscal year 2023-24 and $2,354,700 GPR in fiscal year 2024-25 for

Wisconsin Technical College students; (c) $24,100 PR in fiscal year 2023-24 and

$49,400 PR in fiscal year 2024-25 for Tribal college students; and (d) $1,425,300 GPR in

fiscal year 2023-24 and $2,921,800 GPR in fiscal year 2024-25 for students of private,

nonprofit colleges.

• Doubl

e funding for the nurse educators program at the Higher Educational Aids Board by

providing an additional $5 million GPR in each year of the biennium for: (a) student

fellowships for students pursuing a doctor of nursing or doctor of philosophy in nursing

degrees; (b) postdoctoral fellowships to recruit faculty for system nursing programs; or

programs.

• Ensur

e Wisconsin financial aid recipients are eligible by changing the current federal

terminology for calculating financial aid eligibility from “expected family contribution” to

“student aid index.” The change will go into effect on July 1, 2024, and first apply in financial

award year 2024-25.

• All

ow the Higher Educational Aids Board to increase its information technology programming

capacity by providing $209,900 GPR in fiscal year 2023-24, $130,600 GPR in fiscal year

2024-25, and 1.5 FTE GPR permanent positions.

• Incr

ease the number of Wisconsin Technical College students eligible for Wisconsin Grants

by granting eligibility to students attending at least quarter-time.

• Clar

ify Wisconsin Grant eligibility by matching Pell Grant eligibility. This would allow students

to be eligible for Wisconsin Grants for 12 semesters instead of 10 semesters. Additionally, for

students enrolled less than full time, only the fraction of the student’s enrollment in proportion

to full-time enrollment will be counted towards the semester limit.

• All

ow more students who are enrolled in a University of Wisconsin System institution to

receive a greater amount of Wisconsin Grant funding by changing the award cap to an

amount not to exceed half of the in-state undergraduate tuition and fees charged at the

University of Wisconsin-Madison for an academic year.

• Align the Higher Educational Aids Board method for determining the private nonprofit

Wisconsin Grant amount with the standard used to award Wisconsin Grants to students

enrolled in University of Wisconsin System institutions, technical colleges, and Tribal

colleges.

• Provide $1 million GPR in fiscal year 2023-24 to permit the University of Wisconsin System to

evaluate and discern an effective direct admission model in order to ease the path to higher

education for Wisconsin high school students. The Governor’s budget directs that the system

will consult with the Department of Public Instruction, Wisconsin Technical College System,

and other interested stakeholders to develop a plan to implement direct admission no later

than academic year 2025-26.

• Enhance affordability for aspiring college students with significant economic need by

providing $24.5 million in fiscal year 2024-25 for a tuition promise grant program that pays

tuition and segregated fees on behalf of students whose household adjusted gross income is

$62,000 or less at University of Wisconsin System institutions, excluding University of

Wisconsin-Madison which already administers its own tuition promise program.

• Provide $22.1 million GPR in fiscal year 2023-24 and $44.3 million GPR in fiscal year

2024-25 to allow the University of Wisconsin System to provide ongoing funding to support

key initiatives, recruit and retain critical faculty and staff, and address inflationary costs of

supplies and expenses.

• Increase support for veterans, military personnel, and their families attending University of

Wisconsin System institutions by providing $1,209,500 GPR in fiscal year 2023-24,

$1,612,500 GPR in fiscal year 2024-25, and 21.5 FTE GPR permanent positions to the

system.

• Bolster foster youth programming at University of Wisconsin System institutions by providing

$500,000 GPR in each year of the biennium.

• Provide $500,000 GPR in each year of the biennium for the University of Wisconsin Missing-

in-Action Recovery and Identification Project for missions to recover and identify Wisconsin

veterans who went missing during deployment.

• Make financial education and coaching more widely available in the state by providing the

University of Wisconsin-Madison Division of Extension with $1 million GPR in each year and

2.0 FTE GPR permanent positions dedicated to fund the Wisconsin Financial Futures

Incentive Program.

• Support journalism programs and fellowships for students and graduates of journalism

programs at University of Wisconsin institutions by providing $1 million GPR in each year of

the biennium.

• Provide $300,000 GPR in each year of the biennium to support the UniverCity Alliance

program at the University of Wisconsin-Madison to improve the sustainability, resilience,

livability, and general well-being of communities through education, outreach, technical

assistance, and research addressing the priorities of local governments.

• Improve access to University of Wisconsin System institutions for undocumented individuals

by exempting a person who is a citizen of another country from nonresident tuition rates if

that person meets certain criteria.

• Allow certain students to qualify for resident tuition and fee rates at University of Wisconsin

System institutions or Wisconsin Technical College System schools if: (a) the student, or the

student’s parent or grandparent, is a citizen of a federally recognized Tribal Nation or band in

Wisconsin or is a citizen of a federally recognized Tribe in Minnesota, Illinois, Iowa, or

Michigan; and (b) the student has resided in Wisconsin, Minnesota, Illinois, Iowa, or

Michigan, or in any combination of these states, for at least 12 months prior to enrollment.

• Creat

e the Family and Individual Reinvestment (FAIR) credit to provide a 10 percent cut in

individual income taxes for most middle-class filers. Individuals with incomes below $100,000

and married-joint filers with incomes below $150,000 will receive a nonrefundable credit

equal to 10 percent of their remaining net tax liability or $100, whichever is greater. The credit

phases out gradually for individuals between $100,000 and $120,000 in adjusted gross

income and for married-joint filers between $150,000 and $175,000 in adjusted gross income.

The FAIR credit provides over $400 million in total income tax relief annually to the middle

class with $418.7 million in fiscal year 2023-24 and $420.9 million in fiscal year 2024-25.

• Creat

e state tax-preferred savings accounts that would allow first-time homebuyers to

subtract from their adjusted gross income up to $5,000 in contributions for single filers and up

to $10,000 in contributions for married-joint filers. Earnings on those accounts would also be

exempt from state taxation. Contributions to these accounts would first be eligible for the

individual income tax subtraction in tax year 2024. The fiscal impact is an estimated reduction

in tax revenue of $4.8 million in fiscal year 2024-25.

• Prov

ide tax relief to lower income retirees by increasing the current law retirement income

subtraction by raising the income limits to $30,000 for single filers and $60,000 for married-

joint filers and raising the maximum amount that can be subtracted from adjusted gross

income to $5,500 beginning in tax year 2023. This will provide tax relief of $8.1 million in each

year of the biennium.

• Rais

e the income limits on the current law disability income subtraction to $30,000 for single

filers and $60,000 for married-joint filers beginning in tax year 2023. This will provide tax relief

of $260,000 annually.

• Creat

e a nonrefundable individual income tax credit equal to 10 percent of the amount

individuals pay for flood insurance premiums in a tax year beginning with tax year 2023,

limited to $60. The fiscal impact of this provision is an estimated reduction in individual

income tax revenues of $400,000 in each year.

• Encour

age investments in clean energy by creating a new earnings activity for the Business

Development Credit for energy efficiency and renewable energy project expenditures by a

business, specifying that the Wisconsin Economic Development Corporation may provide an

incentive of up to 25 percent of expenditures on real or personal property for such projects.

• Ensur

e everyone in Wisconsin pays their fair share by limiting the amount of qualified

production activities income that may be claimed by manufacturing firms under the

manufacturing and agriculture credit to $300,000 per tax year, while leaving the agricultural

portion of the credit unchanged. The fiscal impact is an estimated increase in tax revenue of

$348.7 million in fiscal year 2023-24 and $306.4 million in fiscal year 2024-25.

• Adopt

numerous changes made to the federal Internal Revenue Code, including major

provisions of the Tax Cuts and Jobs Act of 2017 and other more recent changes. The net

fiscal impact of these changes is an increase in tax revenue of $187.6 million in fiscal year

2023-24 and $200.6 million in fiscal year 2024-25.

• Proh

ibit the use of the 30 percent long-term capital gains exclusion for nonfarm capital gains

for individuals with income exceeding $400,000 and married-joint filers with income

exceeding $533,000. Taxpayers with noncapital gains income below those thresholds could

claim capital gains income that, when combined with other sources, would stay within those

limits for purposes of the exclusion, but not those amounts above the income limits. These

modifications will preserve the exclusion for low- and middle-income investors while creating

greater equity in the tax treatment of different sources of income for higher-income taxpayers.

These modifications do not affect the 60 percent capital gains exclusion for farm assets. The

fiscal impact is an estimated increase in tax revenue of $185.2 million in fiscal year 2023-24

and $154.2 million in fiscal year 2024-25.

• C

reate a nonrefundable individual income tax caregiver credit for qualified expenses incurr

a family caregiver to assist a qualified family member. For the purposes of the credit, a

qualified family member must be at least 18 years of age, must require assistance with one or

more daily living activities as certified by a physician, and must be the credit claimant’

spouse or related by blood, marriage, or adoption within the third degree of kinship. The

credit is equal to 50 percent of qualified expenses in the taxable year, limited to $500 for most

filers and $250 for married-separate filers. The credit is subject to income limits that phas

out

the credit between $75,000 and $85,000 in income for single, married-separate, and h

ead

household filers and $150,000 and $170,000 in income for married-joint filers. The credit

first applies to taxable years beginning after December 31, 2022. This will provide

$96.7 million in tax relief in fiscal year 2023-24 and $98.3 million in fiscal year 2024-25.

• P

rovide property tax relief for low-income seniors and individuals with disabilities b

ncreasing the maximum income threshold of the homestead credit to $35,000 in tax year

2023 and annually index all parameters for inflation. This will provide $43.2 million in tax relief

in fiscal year 2023-24 and $56.2 million in fiscal year 2024-25.

• I

ncrease eligibility for the Veterans and Surviving Spouses Property Tax Credit, as

recommended by the Blue Ribbon Commission on Veteran Opportunity, by allowing thos

ith disability ratings of at least 70 percent to claim the credit beginning with tax year 2023.

This will provide tax relief of $21.1 million in fiscal year 2023-24 and $22.1 million in fiscal

year 2024-25.

• A

llow renters to claim the Veterans and Surviving Spouses Property Tax Credit as

recommended by the Blue Ribbon Commission on Veteran Opportunity, at a rate of

20 percent when heat is included in rent and 25 percent when heat is not included beginning

with tax year 2023. This provides tax relief of $5.1 million in fiscal year 2023-24 and

$5.2 million in fiscal year 2024-25.

C. SUPPORTING HEALTHIER WISCONSINITES

• I

ncrease access to crisis services by providing $64,700 GPR in fiscal year 2023-24

and

$10,

038,500 GPR in fiscal year 2024-25 to establish up to two crisis urgent care a

obs

ervation centers that will serve as regional crisis receiving and stabilization facilities, offer

seamless transitions between levels of services offered at the centers, arrange for t

transfer to more appropriate treatment options as needed, coordinate the connection to

ongo

ing care, and promote the effective sharing of information between providers to improv

ervice delivery and patient outcomes. The centers will also help alleviate a significant portion

of time that law enforcement and other first responders dedicate to emergency detentio

ases by offering a dedicated first responder drop-off location that accepts custody of

emergency detention cases and does not require that medical clearances be complet

before drop-off. Provide 1.0 FTE GPR position to develop and evaluate the centers on an

ongoing basis.

• P

rovide $3.5 million GPR in each year of the biennium to the Medical College of Wisconsin t

upport the recruitment and training of psychiatry and behavioral health residents throughout

Wisconsin.

• Provide $1.8 million GPR in fiscal year 2024-25 to establish a 25-bed psychiatric residential

treatment facility to provide psychiatric care and treatment to children and youth under th

age

of 21 with complex behavioral health conditions. Allow Medicaid benefits to includ

e a

psychiatric residential treatment facility benefit.

• Pr

ovide $898,700 GPR in fiscal year 2023-24 and $2.1 million GPR in fiscal year 2024-25 to

support in-state 988 Suicide & Crisis Lifeline call centers to meet the needs of those

contacting the Lifeline and to address the increase in Lifeline call volume.

• Prov

ide $1.9 million GPR in fiscal year 2024-25 for a grant to establish a behavioral health

treatment program for those who are Deaf, Hard of Hearing, or Deaf-Blind that will offer direct

treatment from a provider fluent in American Sign Language and educated on the culturally

unique challenges faced by the Deaf, Hard of Hearing, and Deaf-Blind community.

• Creat

e a suicide prevention program to coordinate and strengthen suicide prevention efforts,

and a grant of $500,000 GPR in each year for suicide prevention efforts, as well as grants

specific to the prevention of suicide by firearm use.

• Prov

ide 1.0 FTE GPR position for a violence and self-harm prevention coordinator position in

the Injury and Violence Prevention Program.

• Provide the Medical College of Wisconsin with $7.5 million GPR in each year of the biennium

to support the Wisconsin Community Safety Fund to improve the quality of life, safety, and

well-being of children, youth, and families in Wisconsin through violence prevention.

• Prov

ide $996,400 GPR in each year of the biennium as state support for youth crisis

stabilization facilities to ensure the facilities have a reliable, ongoing funding source.

• Prov

ide $260,000 GPR in each year of the biennium to support existing peer recovery

centers and to support the development of two additional peer recovery centers in counties

not currently served by existing centers.

• Prov

ide $1,644,000 GPR in each year to support stimulant treatment services in high-need

counties to meet increased demand and to support evidence-based stimulant prevention

training programs.

• Provide $30,000 GPR in each year as ongoing support for the online addiction treatment

platform used to locate, compare, and review addiction treatment program options available

close to home.

• Prov

ide $63,800 GPR in fiscal year 2023-24 and $78,500 GPR in fiscal year 2024-25 to

support a 1.0 FTE GPR program and policy advisor position within the Office of Children’s

Mental Health to support carrying out the duties of the office.

• Expan

d Medicaid benefits to include a benefit for adult residential integrated behavioral

health stabilization, residential withdrawal management, and residential intoxication

monitoring services.

• Prov

ide $1,576,600 GPR in fiscal year 2024-25 to support the Qualified Treatment Trainee

grant program, which facilitates the licensure and certification of those in the process of

obtaining or already possessing a graduate degree in psychology, counseling, marriage and

family therapy, social work, nursing, or a closely related field to help address a shortage in

the behavioral health workforce.

• Prov

ide $16,900 GPR and $39,200 FED in fiscal year 2023-24 and $721,400 GPR and

$50,000 FED in fiscal year 2024-25 to modernize the healthcare provider licensing,

certification, and healthcare staff misconduct incident reporting computer systems. This

modernization effort aims to improve system efficiency, transparency, and accountability

within the Department of Health Services and between the department and the providers that

interact with the systems. Provide 1.0 FTE GPR position to oversee the system project.

• Creat

e a segregated fund and direct the Department of Health Services to distribute all

excise tax revenue generated from the legalization of recreational and medicinal marijuana to

counties to support their mental health and substance use disorder services.

• Prov

ide $2 million GPR in each year of the biennium to purchase and distribute opioid

antagonist medication to entities to reverse opioid overdoses.

• Prov

ide $5 million GPR over the biennium to convert funding for the Resilient Wisconsin

program from FED to GPR, expand the Child Psychiatry Consultation Program into a broader

Mental Health Consultation Program and sunset the school-based mental health consultation

pilot program.

• Prov

ide an additional $500,000 GPR annually for free and charitable clinics.

• Provide $259,100 Tribal gaming revenues annually for the Oneida Nation’s Healing to

Wellness Court program for staff and service costs to support a coordinated, postconviction

substance use disorder program that will reduce recidivism and break the cycle of addiction.

• Prov

ide $100,000 GPR in each year for mental health assistance to farmers and farm

families.

• Creat

e a regional farm support program with $157,400 GPR in fiscal year 2023-24,

$195,200 GPR in fiscal year 2024-25, and 2.0 FTE GPR positions to provide services

including financial counseling and mental health training and referrals.

• Provide $380,867,800 GPR over the biennium to fully fund the Medicaid program and provide

$527,783,700 GPR in each year of the biennium to restore base funding in the Medicaid

program that was impacted by a one-time transfer included by the Legislature in

2021 Wisconsin Act 58.

• Expand Medicaid under the federal Affordable Care Act by covering all low-income Wisconsin

residents who earn incomes between 0 percent and 138 percent of the federal poverty level.

Medicaid Expansion will result in 89,700 low-income individuals becoming eligible for

Medicaid while saving $1.6 billion GPR and drawing down an additional $2.2 billion FED over

the biennium.

• Prov

ide $19,239,100 GPR in fiscal year 2023-24 and $21,516,500 GPR in fiscal year

2024-25 to begin using state funding to pay the nonfederal share of the Medicaid Community

Support Program. Currently the nonfederal share of the Community Support Program is paid

by counties.

• Prov

ide $69,304,700 all funds over the biennium to expand Medicaid benefits to include the

following: (a) psychosocial rehabilitation services provided by noncounty providers;

(b) services provided by community health workers; (c) room and board costs for residential

substance use disorder treatment; (d) acupuncture services; (e) doula services; (f) expanded

coverage of certified peer specialists; and (g) coverage of continuous glucose monitoring

devices and insulin pumps through the pharmacy benefit.

• Create a Medicaid community health benefit that invests $25,500,000 all funds over the

biennium for nonmedical services to reduce and prevent health disparities that result from the

economic and social determinants of health. Services include housing referrals, nutritional

mentoring, stress management, and other services that would positively impact an

individual’s economic and social condition.

• Prov

ide the following to hospitals that serve Medicaid recipients: (a) $68,148,800 all funds

over the biennium for a Medicaid rate increase for hospital services that is intended to

increase hospital rates to approximately 85 percent of hospital costs; (b) $531,012,400 all

funds over the biennium to increase acute care hospital access payments; (c) $7,033,800 all

funds over the biennium to increase critical access hospital access payments; and

(d) $20 million all funds over the biennium to increase pediatric supplemental payments.

• Prov

ide the following increases to Medicaid reimbursement rates: (a) $189,161,100 all funds

over the biennium to increase reimbursement rates for primary care services;

(b) $32,475,400 all funds over the biennium to increase reimbursement rates for emergency

physician services; (c) $12,225,600 all funds over the biennium to increase reimbursement

rates for autism treatment services; and (d) $17,000,000 all funds over the biennium to

increase reimbursement rates for outpatient mental health and substance use disorder

services and child-adolescent day treatment.

• Prov

ide $529,200 GPR in fiscal year 2024-25 to implement an easy enrollment program

where individuals would be able to check a box on their individual income tax return

indicating they would like the state to evaluate their eligibility for Medicaid or subsidized

healthcare coverage on the exchange. This initiative aims to reduce the number of uninsured

individuals in the state.

• Provide $16,949,900 all funds in fiscal year 2023-24 and $17,464,000 all funds in fiscal year

2024-25 to expand Medicaid postpartum coverage from 60 days to 12 months.

• Prov

ide $3,644,900 all funds in fiscal year 2023-24 and $7,322,000 all funds in fiscal year

2024-25 to allow schools to receive Medicaid reimbursement for telehealth origination costs.

• Prov

ide $133,600 all funds in fiscal year 2023-24, $174,600 all funds in fiscal year 2024-25,

and 2.0 FTE all funds positions to create a Medicaid Tribal reimbursement support team.

• Incr

ease access to dental services in the state by licensing dental therapists, a midlevel

dental provider, and providing $1.8 million all funds over the biennium to support community

dental health coordinators across the state.

• Prov

ide $1.8 million all funds over the biennium as a grant to conduct data analysis and

identify low-value care in the Medicaid program and other healthcare coverage offered by the

state.

• Prov

ide $12,224,000 all funds in fiscal year 2023-24 and $8,464,000 all funds in fiscal year

2024-25 to create a Medicaid incentive for nonhospital providers who participate in health

information exchange.

• Prov

ide $3,750,000 all funds over the biennium to expand grant funding for graduate medical

education.

• Ensur

e that all eligible children receive service under the Children’s Long-Term Support

waiver program, providing long-term services to children with intellectual, physical and/or

developmental disabilities, and severe emotional disturbances. This creates parity between

long-term care eligibility for children and adults.

• Prov

ide increased funding for caregivers through: (a) providing $88.8 million all funds over

the biennium to increase the direct care and services portion of the capitation rates the

Department of Health Services provides to long-term care managed care organizations in

recognition of the direct caregiver workforce challenges facing the state; and (b) providing

$88.8 million all funds over the biennium to fund rate increases for personal care direct care

services.

• Provide increased funding to build upon the work done in the 2021-23 biennium utilizing one-

time federal funds to enhance home and community-based services in long-term care. A total

of $281.1 million all funds ($105.8 million GPR) are provided for the following home and

community-based services initiatives: (a) providing $43.1 million all funds in fiscal year

2023-24 and $183.8 million all funds in fiscal year 2024-25 to fully fund a 5 percent rate

increase for home and community-based long-term care services; (b) $44.5 million all funds

in fiscal year 2024-25 to fund the development of a minimum fee schedule for home and

community-based services; (c) $627,000 GPR in fiscal year 2024-25 to sustain the Wisconsin

Personal Caregiver Workforce Careers Program to continue enrolling an additional

5,000 caregivers into the professional certificate program; (d) $101,500 GPR in fiscal year

2024-25 to provide ongoing funding for the WisCaregiver Career IT platform to remain up to

date with available resources for caregivers and maintain the technical quality of the website;

(e) $5.5 million GPR in fiscal year 2024-25 to provide grants to the 11 federally recognized

Tribal Nations to make improvements to Tribal community facilities and Tribal citizen housing;

(f) $1.7 million GPR in fiscal year 2024-25 to support the ongoing costs of the Tribal aging

and disability resource specialists to serve as liaisons between the Tribes and the aging and

disability resource centers (ADRCs); (g) $1.1 million GPR in fiscal year 2024-25 to build a

centralized ADRC website and database that is accessible to the public, providing

Wisconsinites with information about long-term care supports and services they can access

from the comfort of their home while also providing ADRCs with a database that centers the

individual rather than the facility; (h) $100,000 GPR in fiscal year 2024-25 for continued

licensure and maintenance of a system to coordinate certification status work between the

department and managed care organizations; and (i) $100,000 GPR in fiscal year 2024-25

for licensure and maintenance of a system devised as a technical solution to allow

streamlined data entry, review, and reporting to comply with a federal rule requiring states to

define the qualities of settings eligible for Medicaid home and community-based services.

• Prov

ide $8 million GPR in fiscal year 2024-25 to expand the successful WisCaregiver

Careers program, which aims to recruit certified nursing assistant (CNA) candidates.

• Prov

ide 1.0 FTE PR position to administer the civil money penalty reinvestment program,

which returns a portion of penalty revenue to states to be reinvested to support activities that

benefit nursing home residents.

• Prov

ide $500,000 GPR annually to provide additional community aid funding for the

Wisconsin Alzheimer’s Family and Caregiver Support Program and increase the maximum

joint income an individual and their spouse may earn per year from $48,000 to $60,000 to

qualify for the program.

• Prov

ide $750,000 GPR annually to supplement the revenue collected from assisted living

facilities and program certification fees for outpatient mental health facilities.

• Prov

ide $15 million GPR over the biennium for the implementation of a complex patient pilot

program to address challenges, including insufficient staffing, to improve post-acute care

facilities’ ability to accept patients being discharged from Wisconsin hospitals.

• Invest in aging and disability resource centers (ADRCs) across the state by providing:

(a) $2.5 million GPR in fiscal year 2023-24 and $5 million GPR in fiscal year 2024-25 to

increase base allocations to ADRCs, which have been unchanged since 2013; and

(b) $3.1 million GPR in fiscal year 2023-24 and $6.3 million GPR in fiscal year 2024-25 to

allocate funding that supports at least 0.5 FTE position to provide caregiver support services

in every county.

• Prov

ide 19.68 FTE GPR positions and 12.32 FTE FED positions and associated funding to

the Bureau of Assisted Living to manage the bureau’s increased workload and to address

backlog.

• Provide 11.0 FTE all funds positions to increase staff in the Office of Caregiver Quality to

increase investigations into allegations of misconduct in long-term care facilities and expand

the background check program.

• Prov

ide $13.6 million GPR to increase base funding to the allocations for adult protective

services, elder abuse, and domestic violence. Funding would also be provided for training

initiatives and technical support.

• Prov

ide $621,000 GPR in fiscal year 2023-24 to support a pilot project in Dane County to

address the impact of the pandemic on the mental health of the healthcare workforce.

• Prov

ide $63,500 GPR annually to manage the training modules developed to train guardians.

• Prov

ide $22.5 million GPR to provide grants for healthcare providers to implement best

practices that increase worker recruitment and retention.

• Invest $153,363,400 all funds over the biennium into the following Emergency Medical

Services items:

o (a) pr

ovide $150 million GPR for flexible grants to public and private emergency

medical services providers;

o (b) beg

in certifying individuals as emergency medical responders who complete a

certified training program without additional examination or who pass the National

Registry of Emergency Medical Technicians examination for emergency medical

responders;

o (c)

provide $1,265,600 all funds over the biennium to implement the public

ambulance provider certified public expenditure provisions of 2021 Wisconsin

Act 228;

o (d) c

reate statutory language to implement the private ambulance provider

assessment provisions of 2021 Wisconsin Act 228;

o (e) c

reate statutory language that removes the barriers first responders with post-

traumatic stress disorder face when seeking worker’s compensation;

o (f)

provide $1,440,000 GPR to purchase epinephrine for public ambulance providers;

o (g) pr

ovide 1.0 FTE GPR position to staff an ambulance inspection program; and

o (h) provide 1.0 FTE GPR position to expand the Office of Preparedness and

Emergency Health Care.

• Inves

t in the following public health initiatives: (a) $1,200,000 GPR over the biennium for

grants to entities that provide healthy aging programs; (b) $5,225,900 GPR over the biennium

for state funding to support the Newborn Screening Program; (c) $3,360,000 GPR over the

biennium for a child wellness grant that would support programming related to parenting, the

educational needs and supports for chronically ill children, and case management for children

with asthma; (d) $500,000 GPR over the biennium for a grant to an organization that supports

individuals with amyotrophic lateral sclerosis; (e) $3,000,000 GPR over the biennium for a

spinal cord injury research grant; (f) $400,000 GPR over the biennium for an existing respite

care grant; (g) $200,000 GPR over the biennium for an existing Alzheimer’s disease grant;

and (h) $2 million GPR over the biennium for the Mike Johnson Life Care and Early

Intervention Services Grant.

• Prov

ide $17,195,300 GPR over the biennium to purchase and maintain the state’s stockpile

of personal protective equipment (PPE).

• Prov

ide $4,172,000 GPR in fiscal year 2024-25 for a pilot program to provide

electrocardiogram screening for youth participating in athletics in Milwaukee and Waukesha

counties.

• Prov

ide $2,870,900 GPR in fiscal year 2023-24, $2,807,000 GPR in fiscal year 2024-25, and

2.0 FTE GPR positions to support grants for maternal and infant mortality prevention,

expansion of fetal and infant mortality review teams, a grief and bereavement resource for

families who have lost a fetus or infant, and technical assistance.

• Lower t

he definition of lead poisoning or lead exposure to 3.5 micrograms per deciliter and

require a public health investigation for every lead poisoned child under age 6. Provi

$8,397,700 all funds in fiscal year 2023-24, $8,736,300 all funds in fiscal year 2024-25, and

16.

5 FTE GPR positions to respond to the increased number of lead investigations, provi

sistance to local health departments, and increase Medicaid lead investigation

reimbursement rates. In addition, provide $3,086,500 GPR in fiscal year 2023-

24 and

$6,

173,100 GPR in fiscal year 2024-25 to expand eligibility for the Birth to 3 Program to

children with a blood lead level greater than 3.5 micrograms per deciliter.

• P

rovide $50,000 GPR in fiscal year 2023-24 in one-time funding for the development of

ogram at the Department of Natural Resources to promote the voluntary use of nonlea

ishing tackle and ammunition.

• I

ncreasing funding by $1 million GPR in fiscal year 2024-25 for financial assistance under th

tate well compensation program. Amend the well compensation program to bring the

program’s contamination criteria in line with federal water quality standards and address

emerging contaminants like PFAS. Update the program’s financial qualifications to allow the

program to serve more Wisconsin residents. Expand the program to include owners of

transient noncommunity public water systems.

• P

rovide $833,000 GPR in fiscal year 2023-24, $850,600 GPR in fiscal year 2024-25, an

0 FTE GPR position to support the Office for the Blind and Visually Impaired, th

elecommunications Assistance Program, interpretation services, and grants to independent

living centers.

• R

eform existing tobacco and vapor product statutes by increasing the age to purchas

obacco and vapor products from age 18 to age 21 to align with federal law, prohibit the us

vapor products indoors, and prohibit the use of vapor products on school grounds. I

add

ition, provide $1,005,000 GPR over the biennium to support the American Indian Quitline.

• C

reate an Animal Disease Response and Prevention Unit at the Department of Agriculture,

Trade and Consumer Protection with $528,300 GPR in fiscal year 2023-24, $542,200 GPR i

iscal year 2024-25, and 6.0 FTE GPR positions. The unit will respond to all animal diseas

out

breaks and enhance secure food supply planning.

• T

ransfer 110.0 FTE GPR correctional officer positions at the Wisconsin Resource Center

from the Department of Corrections to the Department of Health Services to ensure that

these correctional staff are administered by the agency that supervises them. Currently,

these staff are Department of Corrections staff who are supervised by Department of Healt

ervices staff.

• P

rovide 92.0 FTE GPR positions to expand the intensive treatment program at Norther

isconsin Center to address the growing list of individuals with developmental disabilities

who are referred for intensive treatment program services.

• P

rovide $12.9 million all funds over the biennium to establish two forensic assertiv

ommunity treatment teams, which are intended to be an intervention that bridges t

behav

ioral health and criminal justice systems. The program is intended for individuals wit

h a

erious mental illness who are involved with the criminal justice system and is designed t

mprove clients’ mental health outcomes, reduce recidivism, divert individuals in need of

treatment away from the criminal justice system, manage costs by reducing reoccurring

arrest, incarceration and hospitalization, and increase public safety.

• F

ully fund the Wisconsin Healthcare Stability Plan to stabilize the individual healthcar

mar

ket and lower premiums for Wisconsinites. Provide $230 million all funds in each fiscal

year to reinsure high‑cost individuals across all health insurance exchanges.

• Es

tablish a Prescription Drug Affordability Review Board to oversee the pharmaceutical

industry and drug market, analyze other state and national drug policies and practices,

establish spending limits for public sector entities, and set price ceilings to limit price-gouging

of prescription drugs.

• Licens

e and regulate entities involved in the prescription drug supply chain, including

pharmacy benefit management brokers and consultants, pharmacy services administration

organizations, and pharmaceutical sales representatives.

• Prov

ide 16.0 FTE PR positions, $2 million PR in fiscal year 2023-24, and $1.9 million PR in

fiscal year 2024-25 to establish the Office of Prescription Drug Affordability to oversee the

prescription drug regulatory provisions enacted under this budget and further analyze and

develop policy initiatives to continue reducing prescription drug costs.

• Est

ablish a prescription drug importation program to reduce costs and generate savings from

importing low-cost generic prescription drugs from abroad.

• Require pharmacy benefit managers and other third-party payers to reimburse certain 340B

drug discount program participants, specifically federally qualified health centers, critical

access hospitals, and Ryan White HIV/AIDS programs, at the same rate that non-340B

program participants are reimbursed to end discriminatory reimbursement practices.

• Require pharmacy benefit managers to owe a fiduciary duty to insurers and other payers they

contract with when using their discretion to spend plan assets. Pharmacy benefit managers

would consider the benefit plan’s best interests instead of their own and be required to

disclose any conflicts of interest in order to avoid additional wasteful spending within the

prescription drug industry.

• Est

ablish a maximum copayment of $35 for a month’s supply of insulin.

• Est

ablish an Insulin Safety Net Program to ensure those with an urgent need for insulin, as

well as those with lower incomes and limited to no insurance coverage, have access to

affordable insulin.

• Est

ablish a value-based diabetes medication pilot program to develop a value-based

formulary, focus on medications that work, and reduce spending waste.

• Direct the Office of the Commissioner of Insurance to study the creation of a state

prescription drug purchasing entity to pool state and local purchasing power and leverage for

lower prescription drug costs.

• Prov

ide 10.0 FTE GPR positions, $982,400 GPR in fiscal year 2023-24, and $1.3 million

GPR and $3 million PR in fiscal year 2024-25 to establish a state-based health insurance

marketplace by plan year 2026 to improve health insurance marketing and outreach efforts,

administer the marketplace in a more efficient and affordable manner, and gain more state

autonomy over aspects of the health insurance marketplace such as open enrollment

duration and the quality of plans offered.

• Provide $1 million GPR in fiscal year 2023-24 and $1 million PR in fiscal year 2024-25 to

study and develop a public option health insurance plan to be offered alongside other plans

on the individual health insurance marketplace to increase competition and reduce plan

costs.

• Establish parity provisions to ensure patients utilizing telehealth services are not charged or

have their services limited any more than if they received an equivalent in-person service to

increase the availability and affordability of telehealth services.

• To ensur

e that all Wisconsin residents are guaranteed the same health insurance issuance

and coverage protections, require health insurance providers to guarantee the issuance of

health insurance to individuals that apply for coverage regardless of preexisting conditions,

sexual orientation, gender identity, health status or medical history, among others; prohibit

health insurance providers from charging greater premiums or out-of-pocket costs based on

those factors; prohibit health insurance providers from establishing annual or lifetime limits on

health insurance plan benefits; require all health insurance plans to provide coverage for the

ten essential health benefits categories covered under the federal Affordable Care Act; and

require all health insurance plans provide coverage for certain preventive services at no cost

to the plan holder.

• R

egulate the initial and aggregate plan duration for short-term, limited duration healt

nsurance plans, also known as junk insurance plans, from 12 months to 3 months and fr

18 m

onths to 6 months, respectively.

• R

egulate the practice of balance billing, also referred to as surprise billing, in situations wher

pat

ients have little or no control or knowledge over who provides their care, such as when

emergency services are delivered by an out-of-network provider, when ancillary services ar

del

ivered at an in-network facility by an out-of-network provider, or when mental healt

ervices are delivered during a crisis. Require health care providers to deliver a good-faith

cost estimate of services to the patient before those services are delivered.

• R

equire prescription drug cost reductions received from prescription drug manufacturer

coupons and other discounts to count towards a plan holder’s deductible or out-of-pocket

maximum. Only discounts for brand name drugs that have no generic equivalent and bra

name drugs that have undergone prior authorization by a prescriber or the insurer are eligible

n order to avoid incentivizing the purchasing of more expensive brand name drugs over their

generic equivalents.

• R

equire health insurance plans offered in the state to cover services provided by substanc

use disorder counselors if those services are covered under the plan by any other providers.

• Mod

ify current law to require fully insured health insurance policies and self-insure

gov

ernmental health plans that cover medical or hospital expenses to cover diagnosis of a

reatment for infertility and standard fertility preservation services.

• R

equire the Office of the Commissioner of Insurance to establish standards for insurer

networks for all health insurance plans offered in the state. Establishing network adequacy

standards would ensure that a covered service is available within a minimum time an

stance of the plan holder, improving access to services. The office may also establis

urther standards that are found to improve access to services, such as maximum wait times

for scheduling appointments.

• A

nnually adjust the spending limit of the Wisconsin Healthcare Stability Plan reinsuranc

ogram, starting January 2024 to affect payments covering plan year 2025, in order to reflect

changes in the consumer price index for medical care spending, as determined by t

.S.

Department of Labor.

• Provide $106,900 PR in fiscal year 2023-24 and $142,500 PR in fiscal year 2024-25 to

support a 1.0 FTE PR program administrator position for the Wisconsin Healthcare Stability

Plan reinsurance program to oversee operational responsibilities, such as data analysis,

contract management, and strategy development to ensure the availability of affordabl

overage for consumers.

• Provide $341,400 PR in fiscal year 2023-24 and $455,100 PR in fiscal year 2024-25 to

support 5.0 FTE PR positions in the Division of Market Regulation to manage increased

egulatory responsibilities in areas such as licensure application reviews and renewals, rat

and f

orm filings and reviews, consumer complaints, and expanded consumer outreach.

• Pr

ovide $358,000 PR in fiscal year 2023-24 and $477,400 PR in fiscal year 2024-25 to

support 5.0 FTE PR positions in the Division of Financial Regulation to manage increased

regulatory duties and complexity, implement legislation, and continue to meet state

accreditation requirements to ensure Wisconsin’s reputation as a trusted insurance regulator

continues.

• Restore funding for the Office of the Commissioner of Insurance’s general program

operations.

• Full

y fund the Board on Aging and Long-Term Care’s Medigap Helpline that provides seniors

with information on health insurance options.

• Prov

ide $500,000 GPR to the Department of Veterans Affairs to conduct an evaluation of

post-9/11 veteran needs arising from an increase in multiple deployments, higher survival

rates, and longer-term use of skilled nursing services. The evaluation would include a review

of the nature of injuries and advances in technology that can shift the approach to patient

monitoring, assisting with labor shortages, and improving quality of care.

• Requi

re the Department of Veterans Affairs to explore expansion opportunities at all existing

sites of the Veterans Housing and Recovery Program.

• Prov

ide $1,096,600 SEG annually to double state grants to support county and Tribal

veterans service offices (CVSOs and TVSOs). Veterans service offices are the primary point

of contact for veterans and advocates in navigating the benefits veterans have earned.

• Prov

ide 7.0 FTE SEG positions and $957,200 SEG over the biennium to expand the

Veterans Outreach and Recovery Program, which provides outreach mental health services

and support to veterans who may have a mental health condition or substance use disorder.

The goal of the program is to reduce the suicide rate among veterans and to provide veterans

access to mental health supports, housing, and other services.

• Incr

ease support for veterans, military personnel, and their families attending University of

Wisconsin System institutions by providing $1,209,500 GPR in fiscal year 2023-24,

$1,612,500 GPR in fiscal year 2024-25, and 21.5 FTE GPR permanent positions.

• Prov

ide $450,000 GPR annually to assist employers that hire veterans who are transitioning

to civilian life. The funding will help employers provide training and wraparound services to

veterans.

• Prov

ide $250,000 GPR over the biennium to award grants to organizations that train service

dogs for the purpose of assisting providers in attaining accreditation specific to post-traumatic

stress disorder from Assistance Dog International.

• Prov

ide $50,000 PR in each year of the biennium to the Department of Safety and

Professional Services provide grants to organizations to accomplish the direct translation of

military training and credits to licensure requirements, and where possible, to adjust

programming to allow military training to fulfill these requirements.

• Provide $450,000 GPR in each year of the biennium as state support for the peer-run respite

center for veterans to ensure the center has a reliable, ongoing funding source.

• Expan

d access to the Assistance for Needy Veterans Grant by including medical devices as

an allowable expense under the program. The Governor also recommends increasing the

annual and lifetime caps for support under this program.

• Prov

ide funding to the state veterans homes to address their ongoing needs so that each

home has adequate resources to provide the best possible care to the most vulnerable

veterans in Wisconsin.

• Prov

ide funding to the Department of Veterans Affairs to create a master plan to assess t

urrent status of the campus of the State Veterans Home at King.

• P

rovide 2.9 FTE GPR positions and 3.1 FTE FED positions to better maintain the facilities

under management by the department.

• Provide $821,400 GPR and 11.0 FTE GPR positions to provide ongoing funding for the

comprehensive wellness program, which works to improve the culture of health and wellness

within the Wisconsin National Guard.

• S

trengthen and clarify statutes as they relate to sexual misconduct in the Wisconsin National

Guard and make updates to the Wisconsin Code of Military Justice.

• Max

imize access to and utilization of the Department of Safety and Professional Services’

enhanced Prescription Drug Monitoring Program for all Wisconsin healthcare providers

through increased expenditure authority of $253,800 PR in fiscal year 2023-24 an

$261

,400 PR in fiscal year 2024-25. Also, provide $600,000 PR in fiscal year 2024-25 for

electronic health records integration to ensure the accuracy and efficacy of the enhanced

rescription Drug Monitoring Program. The system improves patient care and safety and

reduces misuse and diversion of prescription drugs.

• Create a new advanced practice nurse practitioner license for registered nurses. A

advanced practice nurse practitioner will have a greater scope of practice, including issuing

prescription orders and delegating certain tasks to other clinically trained healthcare workers,

increasing access to healthcare services.

• Expand the Health Care Provider Loan Assistance Program by providing $500,000 GPR i

eac

h year of the biennium to increase access to medical and dental services across the stat

by providing incentives for medical assistants, dental assistants, dental therapists, and dental

auxiliaries to work in Wisconsin.

• Support newborn screening operations at the Wisconsin State Laboratory of Hygiene, whic

creens infants born in Wisconsin for 48 disorders, hearing loss, and critical congenital heart

disease by providing $2.2 million GPR in each year of the biennium.

• P

rovide $735,000 GPR in each year to provide electronic benefit transfer processi

equ

ipment to farmer’s markets and direct-marketing farmers to expand healthy food options

for those enrolled in the FoodShare program.

• P

rovide $88,200 GPR and $88,200 FED in fiscal year 2023-24 and $448,400 GPR and

$448,400 FED in fiscal year 2024-25 to implement a Double Up Food Bucks Pilot Program t

sist FoodShare households by providing discounts on fresh fruits and vegetables at

participating retailers.

• F

ully fund the county income maintenance consortia.

• R

epeal the requirement for able-bodied adults without dependents to clear a drug screening

in order to participate in the FoodShare Employment and Training program.

• R

epeal the onerous work requirement for able-bodied adults enrolled in the FoodShare

program.

• Repeal the pay-for-performance incentives for vendors of the FoodShare Employment and

Training program.

• P

rovide $247,500 PR in fiscal year 2023-24 and $275,000 PR in fiscal year 2024-25 to

implement and administer a qualified Achieving a Better Life (ABLE) Savings program, whic

hel

ps individuals with disabilities save money through tax-favored savings accounts that can

be used to help pay for qualified expenses. An estimated 140,000 Wisconsinites would be

igible to benefit from this program.

• Make gun s

afes, barrel locks, and trigger locks sales tax exempt to encourage safe, secure,

and responsible storage of firearms when they are not in use.

• Make basic family needs including diapers, incontinence products, menstrual products,

tampons, and breast pumps exempt from sales tax.

• Tax l

ittle cigars as cigarettes to close a cigarette tax loophole.

• Impose on all e-cigarette and vapor products the existing tobacco tax rate of 71 percent of

the manufacturer’s list price to ensure these products receive equal tax treatment as other

similar tobacco products, and consequently, reduce the appeal of these products as entries

to smoking and nicotine addiction.

• Establish an Affordable Workforce Housing Grant program and provide $150 million GPR in

fiscal year 2023-24 to provide funding to local municipalities to encourage the development

and maintenance of additional affordable workforce housing in the state. Allowable costs

have been expanded to include infrastructure projects (streets, sidewalks, water and sewer)

related to new residential developments that include affordable housing. In addition,

municipalities that change zoning criteria in order to support additional affordable housing

development would qualify for a bonus.

• Provide $100 million GPR in fiscal year 2023-24 to create a Municipal Home Rehabilitation

Program to award grants to municipalities to renovate and restore blighted residential

properties with the goal of increasing available affordable housing options within the

municipality.

• Provide $100 million GPR in fiscal year 2023-24 to support a revised and more robust

Workforce Housing Rehabilitation Loan Program at the Wisconsin Housing and Economic

Development Authority. The revised program would provide low-interest and forgivable loans

to low- to moderate-income households to renovate or repair their current home, including

lead remediation. The authority would be allowed to use a portion of the funding for housing

navigators and administration.

• Create a Housing Safety Grant Pilot Program and provide $5 million GPR in fiscal year

2023-24 to award grant funding to the city of Milwaukee for activities that support the

improvement of rental housing safety.

• Provide $7.25 million GPR in fiscal year 2023-24 to create a pilot program that provides

funding for whole-home upgrades within the city of Milwaukee with the goal of reducing

energy burdens and creating a healthier living environment for households with lower

incomes.

• Provide $232,200 GPR in fiscal year 2023-24, $310,900 GPR in fiscal year 2024-25 and

3.0 FTE GPR positions to the Department of Administration to staff the housing grant

programs.

• Modify the State Housing Tax Credit program to help address the need for affordable housing

in the state by: (a) increasing the limit on the total amount of state housing tax credits that

may be authorized annually by the authority from $42 million to $100 million; and

(b) increasing the credit period from six taxable years to ten taxable years.

• Increase the limit on notes and bonds the authority can issue that are secured by a capital

reserve fund from $800 million to $1.2 billion to continue to finance projects supported with an

allocation of state and federal housing tax credits.

• Modify statutory language related to landlord-tenant responsibilities and eviction processes

and procedures that were enacted over the past decade to provide a better balance of rights

and protections for landlords and tenants. Under the modifications, municipalities are no

longer restricted from enacting certain ordinances related to inspection fees, prohibiting

evictions in winter months and safety disclosures.

• Create a civil legal assistance program and provide $30 million GPR in each fiscal year to

allocate funds to the Wisconsin Trust Account Foundation, Inc. to support grants for civil legal

services to indigent persons, with a focus on establishing a statewide right to counsel for

evictions Civil legal services may also include unemployment compensation, consumer law,

domestic violence and health insurance matters.

• Expand the civil legal assistance program at the Department of Children and Families by

$500,000 TANF in each fiscal year to provide legal services related to eviction matters.

• Increase funding for the same homeless prevention programs recommended by the

Interagency Council on Homelessness, but at higher funding levels: (a) $1 million GPR in

each fiscal year for the Homelessness Prevention Program; (b) $1 million GPR in each year

for the creation of a new diversion program; (c) $700,000 GPR in each fiscal year for the

State Shelter Subsidy Grant; (d) $5 million GPR in each fiscal year for the Housing

Assistance Program; (e) $500,000 TANF in each fiscal year for the Homeless Case

Management Services Grant; (f) $250,000 GPR in each fiscal year for the Skills

Enhancement Grant at the Department of Children and Families; (g) $2 million GPR in each

fiscal year to create a new housing quality standards grant; and (h) $600,000 GPR in each

fiscal year to create a grant for housing navigation. Also, create a veteran rental assistance

program funded at $1 million GPR in each fiscal year. Finally, provide 2.0 FTE GPR positions

within the Department of Administration’s Division of Energy, Housing and Community

Resources to support the expanded programs and 1.0 FTE FED position funded with TANF

to support the Homeless Case Management Services Grant.

• The Gov

ernor recommends modifying tax incremental finance policies to support the

development of workforce housing by increasing the amount of a tax incremental finance

district’s area that can be comprised of newly platted residential developments to 60 percent

instead of the current law 35 percent, if that additional amount is used solely for workforce

housing. The Governor also recommends allowing municipalities to extend the life of a tax

incremental finance district by up to three years, rather than the current one year, if the

municipality adopts a resolution specifying how it will increase the number of affordable or

workforce housing units. The Governor further recommends that municipalities may adopt

workforce housing initiatives by implementing one or more of several enumerated policies

aimed at improving the availability of workforce housing and that implementing three or more

of these enumerated policies shall give those municipalities priority in housing grants from

state agencies responsible for such grants. In addition, the Governor recommends that

workforce housing for the purposes of these provisions be defined to mean housing that

costs a household no more than 30 percent of the household’s gross median income and

housing that comprises residential units for initial occupancy by individuals whose household

income is no more than 120 percent of the county’s gross median income.

D. BUILDING STRONG, SAFE COMMUNITIES

• Refor

m Shared Revenue to provide the largest increase in aid to municipalities and counties

in decades. The Governor’s budget creates a new shared revenue appropriation that will

provide increased aid to municipalities and counties of $576.2 million GPR for their calendar

year 2024 budgets (state fiscal year 2024-25). Future allocations will grow with sales tax

collections. The appropriation’s allocation for each calendar year will be 20 percent of the

state’s sales tax collections of the fiscal year ending in that calendar year after subtracting the

amount needed to continue existing County and Municipal Aid, Expenditure Restraint, and

the county and municipal components of personal property aid. The remaining funds will be

divided between public safety aid and general aid to municipalities and counties:

o Public safety aid will be 43.4 percent of the total funds available under the new

appropriation. Public safety aid payments can be used to support law enforcement,

fire, and EMS services as well as courts and district attorneys’ offices and the formula

ensures that no government shall receive less than $10,000 under the public safety

aid distribution.

o The remaining 56.6 percent of the aid will be distributed as general aid with

70 percent allocated to municipalities and 30 percent to counties. General aid will be

distributed with 15 percent of the general aid distribution being made on a per capita

basis while the remaining 85 percent will be distributed based on aidable revenues

as adjusted by the local government’s equalized value per capita relative to statewide

equalized value per capita.

o For f

uture distributions under the new shared revenue, no local government may

receive less than 95 percent of their prior year’s allocation. Existing shared revenue

programs will continue under their current law provisions.

• Provide $300 million GPR in one-time funding over the biennium to the Department of

Administration to support the continuation of three transformative community investment

programs that were funded with federal funding received by the state under the American

Rescue Plan Act of 2021:

o Neig

hborhood Capital Investment Fund Grant Program ($150 million), which provides

grants to local and Tribal governments to invest in community and regionally-based

solutions to bolster Wisconsin’s workforce for the future, such as projects to build

affordable housing, increase transit and transportation access, and expand child

care, or other areas based on unique local workforce needs.

o Healt

hcare Infrastructure Capital Grant Program ($100 million), which provides grants

for investments in healthcare infrastructure necessary to expand access to affordable

healthcare, build facilities in areas of high-need, and reduce disparities in healthcare

outcomes and services statewide, among other key priorities.

o Touri

sm Capital Investment Grant Program ($50 million), which provides funding to

assist local and Tribal governments and nonprofit organizations to bolster

Wisconsin’s tourism, travel, and lodging economies.

• Prov

ide parity between low and high growth municipalities and counties by allowing a

minimum growth factor of 2 percent for county and municipal levy limits.

• Eliminate an existing disincentive for local government service consolidation by removing the

required negative levy limit adjustment that the transferring government must take when

transferring the provision of a service to another government.

• Make it

easier for communities to work together to create cross-boundary transit corridors by

creating an exclusion to county and municipal levy limits for cross-municipality transit routes

where the counties and municipalities meet a number of criteria, including that the counties

and municipalities claiming the exclusion must be adjacent, must have entered into an

intergovernmental cooperation agreement to provide new or enhanced transit services across

county or municipal boundaries, and that each participating county or municipality must have

passed a referendum approving the agreement.

• Enhanc

e local control by removing the current law negative county and municipal levy limit

adjustment for fees for covered services.

• Prov

ide greater flexibility to local governments by removing the current law supermajority

requirement for the utilization of carryover county and municipal levy limit capacity.

• Prev

ent erosion of the property tax base and protect property taxpayers and local

governments by closing the dark store loophole for commercial property assessments.

• Encour

age service sharing between local units of government on emergency medical

services and fire protection by broadening the types of service sharing arrangements that

qualify for the levy limit adjustments related to service sharing.

• Prov

ide greater flexibility in the creation of tax incremental finance districts by allowing

municipalities to exceed the 12 percent of equalized value limitation if those municipalities

have a district expiring in the following year that would bring them below that limitation.

• Repeal Wisconsin’s outdated and burdensome personal property tax on businesses and

provide $202.4 million in fiscal year 2024-25 to compensate all local taxing jurisdictions for

the reduction in their property tax base. The payments to local governments will increase in

future years with inflation.

• All

ow Milwaukee County to impose an additional 1 percent sales tax, with 50 percent of the

resulting new revenue distributed to the city of Milwaukee, to diversify local revenue sources

and improve the ability of both Milwaukee County and the city of Milwaukee to address

unique needs in the state’s largest metropolitan area, if approved by local referendum.

• All

ow counties, other than Milwaukee County, to impose an additional 0.5 percent sales tax

and allow municipalities with populations over 30,000, other than the city of Milwaukee, to

impose a 0.5 percent sales tax to diversify local revenue sources and better empower local

governments to fund police and fire protection, transit, roads, and other important services, if

approved by local referendum.

• Revise the expenditure restraint program budget test for municipalities to increase local

control and to ensure they are not excluded from the program’s payments because of

increases in their spending due to accepting federal dollars or increased levies approved by

voters via referendum.

• Prov

ide $578,000 GPR in fiscal year 2023-24 and $520,200 GPR in fiscal year 2024-25 to

the towns and counties that experienced a reduction in their property tax base due to a recent

federal court decision that exempted from property taxation certain Tribal Lands, with this

funding phasing out over 10 years.

• Incr

ease the payments for municipal services appropriation by 5 percent, providing a

$929,200 GPR annual increase to governments serving tax-exempt state property.

• Inves

t $750 million GPR for the Broadband Expansion Grant program with a requirement that

the Public Service Commission spend at least $75 million annually on grants. This historic

proposal builds upon the Governor’s previous record-setting investments in expanding

broadband across the state and is more than four times larger than the total funding provided

to the grant program over the Governor’s past two budgets.

Str

engthen the Broadband Expansion Grant program to ensure that all Wisconsinites have

access to reliable and affordable broadband service by:

o Incr

easing the statutory speed standard for areas considered to be broadband

“unserved” to service speeds less than 100 megabits per second (mbps) download

and 20 mbps upload.

o All

owing the commission to reevaluate the statutory speed standard every two years

to align with changes in technology and market conditions.

o Requiring an area to have access to broadband service that is “available, reliable,

and affordable” in order for it to be considered served, and all other areas to be

considered “unserved.”

o Requi

ring the commission to give priority to grant applications contributing matching

funds of at least 40 percent of the total requested funding amount.

o Requi

ring the commission to give priority to grant applicants capable of offering

service at the speed threshold of 100 mbps download and 100 mbps upload.

o Requi

ring the commission to consider the affordability of service and all federal

funding for broadband in the proposed project area when evaluating grant

applications.

o Est

ablishing a procedure for Internet service providers (ISP) to challenge a grant

award. To challenge a grant award, the ISP must demonstrate that it currently

provides “available, reliable, and affordable” service at minimum speeds defined

under state law or must commit to do so within two years.

 If t

he commission withholds grant funding from an applicant as a result of an

ISP challenge and the ISP does not fulfill its commitment to provide service,

the commission is prohibited from awarding grant funding to the ISP for the

following two grant cycles and the ISP is barred from submitting a challenge

for the following two grant cycles.

• Provide 2.0 FTE PR positions and associated expenditure authority to the State Broadband

Office to assist with the expanded Broadband Expansion Grant program and the challenge

process.

• Eliminate several statutory restrictions for certain municipalities defined as broadband

“unserved” to enable them to directly invest in broadband infrastructure and provide service

to residents. Allow these communities to apply directly for broadband expansion grant

funding from the Public Service Commission.

• Create a Broadband Line Extension Grant Program, funded at $1.75 million GPR in fiscal

year 2023-24 and $3.5 million GPR in fiscal year 2024-25, to provide grants and financial

assistance to eligible households to subsidize the cost of a line extension from existing

broadband infrastructure to a residence that is not served by a broadband provider.

• Modify current law to protect broadband customers by requiring broadband service providers

to meet certain service requirements, including prohibiting a broadband service provider from

denying service to residential customers based on race or income and requiring providers to

award credits to customer’s internet bills based on service outages.

• Modify current law to create a Digital Equity program supported by funding from the state

Universal Service Fund.

• Use nearly $380 million GPR of the state’s historic surplus to pay down debt in the

transportation revenue bond program. This action will allow funds currently devoted to debt

service to become available for improving Wisconsin roads as well as saving the state money

on interest payments.

• Prov

ide two new sources of revenue to fund infrastructure improvements throughout

Wisconsin and maintain a healthy transportation fund. The first is an amount calculated from

the state sales tax generated by the sale of electric vehicles. The second is a transfer of a

portion state sales tax on the sale of auto parts, tires, and repair services. These transfers will

allocate nearly $190 million from the general fund to the transportation fund over the

biennium.

• Prov

ide $16 million in bonding for dredging, seawall reconstruction, and other projects

associated with the Harbor Assistance Program.

• Prov

ide $20 million in bonding for the Freight Rail Preservation Program.

• Prov

ide $47.2 million in bonding to begin the Blatnik Bridge reconstruction project in

partnership with the Minnesota Department of Transportation.

• Prov

ide $140.8 million in bonding for the reconstruction and widening of I-94 East-West in

Milwaukee County.

• Increase general transportation aids for both counties and municipalities by 4 percent in

calendar year 2024 and another 4 percent in calendar year 2025. The Governor’s Executive

Budget provides the highest level of funding for general transportation aids in the program’s

history.

• Establish a new program with $60 million GPR in funding for traffic calming grants.

• Improv

e the safety of travel on Wisconsin’s highways by providing 35.0 FTE SEG positions

for additional state troopers and 10.0 FTE SEG positions for motor carrier inspectors.

• Establish a program to utilize federal funding to further build out Wisconsin’s electric vehicle

charging infrastructure. This action will enable the state to use $17.1 million of federal funding

in fiscal year 2023-24 and $17.4 million of federal funding in fiscal year 2024-25 along with

potential state funds to allow greater use of electric vehicles throughout the state.

• Provide $234,900 GPR in fiscal year 2023-24, $177,300 GPR in fiscal year 2024-25, and

2.0 FTE GPR positions to the Department of Agriculture, Trade, and Consumer Protection to

provide consumer protection oversight of electric vehicle charging stations.

• Modif

y current law to explicitly exempt from the definition of a public utility, a nonutility that

supplies electricity through an electric vehicle charging station and charges by duration or the

kilowatt-hour.

• Prov

ide $16,000 SEG to develop and implement electric vehicle identifier plate stickers to

assist first responders in emergency response.

• Prov

ide an ongoing $50 million SEG supplement to the local road improvement program

each year beginning in fiscal year 2023-24 to increase direct support of local road and bridge

projects throughout the state. In addition, provide a funding increase of 4 percent in each

year of the biennium for the current law elements of the local road improvement program.

• Increase state support of mass transit aids by 4 percent in each calendar year of the

biennium to further support nondrivers’ access to employment, healthcare, and recreation

throughout the state. In addition, increase funding to programs supporting transportation for

the elderly and people with disabilities, paratransit, and employer-sponsored commuting

options.

• Rest

ore the ability of cities, villages, and towns to use eminent domain to build pedestrian

and bike paths.

• Prov

ide $1.2 million annually to provide matching funds for Transportation Alternatives

Program (TAP) projects for small communities.

• Rest

ore roadway design considerations in state law that support nonmotorist infrastructure

known as complete streets.

• Allow local governments to establish Regional Transit Authorities throughout the state as

local governments deem necessary for the benefit of their residents.

• Implem

ent Driver Licenses for All, regardless of documented status, to improve the safety of

Wisconsin roads for everyone in Wisconsin.

• Incr

ease the number of days that an employee of a farm service industry employer can carry

a seasonal Commercial Driver’s License from 180 to 210 days to match federal law.

• Pr

ovide $50 million in bonding to support the Southern Bridge project on the Fox River in

Brown County.

• Dir

ect $1.2 million SEG for pressing repairs to the Ray Nitschke Memorial Bridge in Green

Bay.

• Allocate $8 million SEG in new funding to support local government administration of federal

local road program funding opportunities. This total includes $3 million SEG to help local

governments perform the administrative steps that must occur before a local road project

becomes eligible for federal funds. The remaining $5 million SEG will enable the Department

of Transportation to provide technical assistance to local governments so that communities in

our state can meet federal reporting requirements throughout the duration of local road

projects.

• Prov

ide $62,800 PR in fiscal year 2023-24, $82,300 PR in fiscal year 2024-25, and

1.0 FTE PR position to oversee a team at the Department of Natural Resources that provides

environmental reviews of transportation projects statewide to ensure these projects move

forward in a timely manner.

• Provide $150,000 SEG in fiscal year 2023-24 and $50,000 SEG in fiscal year 2024-25 to

develop and maintain a database to support the cooperative agreement between the

Department of Natural Resources and the Department of Transportation.

• Prov

ide $45 million GPR for the design and implementation of a new statewide interoperable

communications system, which is a shared land mobile radio public safety communications

system allowing emergency personnel and first responders to communicate for their daily

missions, during a major disaster, or a largescale incident.

• Prov

ide $506,400 GPR annually for training and equipment for an urban search and rescue

task force to allow the department to reach its goal of building Wisconsin Task Force 1 into a

Type 1 urban search and rescue task force capable of 24-hour operations.

• Provide 1.0 FTE GPR position to manage the department’s wireless network throughout its

locations in the state.

• Prov

ide $100,000 GPR annually to hire a consultant to navigate the federal process of

choosing locations for the bed down of new aerial refueling aircraft to best position Wisconsin

as the location for updated aircraft.

• Prov

ide $6 million GPR annually to double the amount of funding available for grants to

public safety answering points to help in the transition to Next Generation 911 by training

staff, purchasing equipment, and upgrading software.

• Prov

ide $557,700 GPR and 4.0 FTE GPR positions to create an Office of Homeland Security

to coordinate with the federal Department of Homeland Security and state and local law

enforcement agencies to identify, investigate, assess, report, and share tips and leads linked

to emerging homeland security threats.

• Provide $2.1 million GPR over the biennium to provide state matching funds for a

cybersecurity grant program.

• Pro

vide $1 million GPR in fiscal year 2023-24 to the town of Silver Cliff to assist in the

rebuilding of the public safety building destroyed by a tornado in June 2022.

• Prov

ide $290 million GPR for a grant to a professional baseball park district to ensure the

district has the financial resources to meet its obligations to assist in the development,

construction, improvement, repair, and maintenance of the district’s baseball park facilities.

To receive the funds, the district must have: a lease with a professional baseball team for a

term that expires not earlier than December 31, 2043; a nonrelocation agreement with the

team; and an agreement reflecting the team’s financial contribution to the baseball park

facilities. In addition, the Governor recommends providing certain property and sales tax

exemptions for activities related to the baseball park.

• Prov

ide $200 million GPR for the replacement of lead service lines through the Safe Drinking

Water Loan Program.

• Modif

y current law to allow utilities to provide financial assistance in the form of 100 percent

grant funding to support the replacement of lead service lines for property owners.

• Provide grants of equal amounts to each Tribe to support programs that meet the needs of

Tribal citizens, as determined by each Tribe. In total, the grants will be funded at

$15,524,900 PR-S in each fiscal year, an amount intended to return the remaining Tribal

gaming revenues received by the state over the biennium to the Tribes.

• Create new grants for Native American language revitalization and cultural preservation,

funded at $5,500,000 Tribal gaming revenues each fiscal year, to be distributed equally to

each Tribe.

• Increase the Native American Tourism of Wisconsin (NATOW) marketing contract by

$115,000 PR-S Tribal gaming revenues annually starting in fiscal year 2023-24 and transfer

management of the contract from the Department of Tourism to the Department of

Administration.

• Provide specific grants using Tribal gaming revenues, including:

o An annu

al grant of $110,100 to the Oneida Nation to support a coordinator position

within the National Estuarine Research Reserve (NERR) system. The coordinator will

work with NERR and Great Lakes Tribal Nations.

o An annu

al grant of $175,000 to the Oneida Nation to support Audubon Great Lakes

projects.

o An annual grant of $266,600 to the Menominee Nation to support transit services to

improve access to necessary resources, including youth services, court-ordered

visitations, and other family services appointments.

• Reestablish $109,300 PR-S Tribal gaming revenues in each year to the University of

Wisconsin-Green Bay for educational programs developed in partnership with the Oneida

Nation of Wisconsin that was made one-time in the 2021-23 biennial budget.

• Modify statutes to allow Tribal Nations to place welcome signs along roadways to mark Tribal

boundaries in the same manner that municipalities currently do.

• Legalize the sale of marijuana for recreational use if it is sold by a retailer holding a permit

issued by the Department of Revenue and direct all resulting excise tax collections into a

newly created Community Reinvestment Fund to support $44.4 million of grants to counties

to provide mental health and substance use disorder services during fiscal year 2024‑25.

• Prov

ide $1,535,900 all funds in fiscal year 2023-24 and $1,853,700 all funds in fiscal year

2024-25 in one-time funding for pay progression for assistant attorneys general to increase

retention of experienced attorneys.

• Prov

ide $7,013,400 GPR in each year for market-based salary adjustments for assistant and

deputy district attorneys, providing a competitive starting rate of $35 per hour. Also, provide

$1,672,100 GPR in fiscal year 2024-25 for a one-step pay progression for assistant and

deputy district attorneys to increase retention of experienced attorneys. Finally, provide

$854,300 GPR in fiscal year 2024-25 to increase compensation for elected district attorneys,

beginning with their new term in 2025.

• Pr

ovide additional assistant district attorney positions across the state by: (a) providing an

additional 42.9 FTE GPR assistant district attorney positions in each fiscal year; (b) providing

1.4 FTE GPR positions to increase part-time positions in three counties; and (c) converting

8.5 FTE positions from PR to GPR for positions where grant funding has or will run out.

• All

ow counties with a population between 200,000 and 750,000 to appoint up to four deputy

district attorneys.

• Prov

ide $3 million GPR annually in one-time funding to rebuild and modernize the District

Attorneys’ caseload management system, also known as the PROTECT system.

• Provide $7,033,500 GPR in fiscal year 2023-24 and $9,021,200 GPR in fiscal year 2024-25

for market-based salary adjustments for assistant state public defenders to increase retention

of experienced attorneys. This funding would be sufficient for a starting rate of $35 per hour

and a one-step pay progression in fiscal year 2024-25.

• Provide $2,784,200 GPR and 50.0 FTE GPR positions in fiscal year 2023-24 and

$3,579,000 GPR and 50.0 FTE GPR positions in fiscal year 2024-25 for the State Public

Defender to hire additional administrative staff and reduce oversized staff workloads.

• Prov

ide $10,803,300 GPR in each fiscal year to increase the private bar reimbursement rate

and improve the State Public Defender’s ability to recruit and retain private attorneys. This

funding would be sufficient for a private bar rate of $100 per hour and a travel rate of $50 per

hour.

• Modif

y statutes to increase the number of trial division attorneys that may be exempted from

caseload standards from 10 to 25. These modifications will allow attorneys to perform other

duties, such as providing office management, leading legal trainings, or participating in

Treatment Alternatives and Diversion program and other diversion programs.

• Ass

ist prosecutors or public defenders in receiving loan repayment assistance through the

John R. Justice Student Loan Repayment Program by providing the Higher Educational Aids

Board with $28,300 GPR in fiscal year 2023-24, $41,800 GPR in fiscal year 2024-25, and

0.5 FTE GPR position to administer the program.

• Prov

ide $65,700 PR in fiscal year 2023-24, $84,200 PR in fiscal year 2024-25, and 1.0 FTE

PR position to hire an attorney to represent executive branch attorneys in Office of Lawyer

Regulation complaints.

• Requi

re, with certain exceptions, that any firearm transfers be done through federally

licensed firearm dealers, including background checks conducted on recipients.

• Create an extreme risk protection injunction process similar to the existing domestic violence

injunction for law enforcement and concerned loved ones to use where a court, after a

hearing, may order an individual to refrain from possessing a firearm for up to one year if it

finds by clear and convincing evidence that they are substantially likely to injure themselves

or another by possessing a firearm. The Department of Justice would, in addition to checking

for prohibitions under current law, check whether an applicant for a license to carry a

concealed weapon is prohibited from possessing a firearm under an extreme risk protection

injunction.

• Requi

re district attorneys to offer a diversion and restitution alternative for certain

misdemeanor offenses.

• Permit county sheriffs and local appointing authorities to choose whether to hire noncitizens

as officers as long as that person has valid employment authorization from the

U.S. Department of Homeland Security.

• Est

ablish that requesting an applicant for employment to supply information regarding their

conviction record, or otherwise considering the record, prior to selection for an interview

constitutes employment discrimination.

• Provide $975,800 GPR in each year for ongoing funding to the Department of Corrections t

oper

ate six mobile labs.

• Clarify and bolster the duties of the Parole Commission and the Department of Corrections to

notify family members when a person applies for parole or is released on parole or extende

upervision.

• Provide $2,227,700 GPR in fiscal year 2023-24 and $4,443,200 GPR in fiscal year 2024-25

to expand community-based options for alternatives to revocation. This funding will be used

o provide an additional 100 alternatives to revocation beds.

• Provide $1,859,400 GPR and 34.0 FTE GPR positions in fiscal year 2023-24 an

$1,

003,400 GPR and 36.0 FTE GPR positions in fiscal year 2024-25 to expand capacity for

the Earned Release Program, Substance Use Disorder programming, and other needed

ogramming at adult institutions.

• Provide $1,106,800 GPR in fiscal year 2023-24, $3,915,800 GPR in fiscal year 2024-25, an

0 FTE GPR position to expand a medication assisted treatment program at the Department

of Corrections.

• Provide $250,000 GPR in each year to expand the Windows to Work program.

• Expand the Opening Avenues to Reentry Success program statewide by providing

$2,309,200 GPR in fiscal year 2023-24 and $3,078,900 GPR in fiscal year 2024-25.

• Extend the Opening Avenues to Reentry Success 2 Probation Pilot program by providi

$1,

140,400 GPR in fiscal year 2023-24 and $2,268,000 GPR in fiscal year 2024-25.

• Provide 2.0 FTE GPR positions at the Department of Health Services to administer t

pansion of the Opening Avenues to Reentry Success program, a program that strives t

educe recidivism in Department of Corrections clients who experience a serious mental

illness through intensive case management and mental health services.

• Create an earned compliance credit for certain eligible individuals on supervision. The ear

ned

ompliance credit would equal the amount of time served on extended supervision or parol

ithout violating any conditions or rules of extended supervision or parole.

• Expand the Earned Release Program to include educational, vocational, treatment, or other

qualifying training programs that are evidence-based to reduce recidivism.

• Provide $463,000 GPR in fiscal year 2023-24, $542,700 GPR in fiscal year 2024-25, an

0 FTE GPR positions to provide additional staffing at the Robert E. Ellison Correctional

Center and the Milwaukee Women’s Correctional Center. The staffing supplement will

provide a chaplain position for both institutions and supervising officer positions for the

Robert E. Ellison Correctional Center.

• Provide $85,300 GPR in fiscal year 2024-25 to fund nonpersonnel costs related to t

open

ing of the health services unit at the Wisconsin Secure Programming Facility.

• Provide $209,000 all funds in each year of the biennium to fully fund GPS tracking of sex

offenders that are currently under monitoring by the Department of Corrections.

• Provide $208,900 all funds in fiscal year 2023-24 and $471,900 all funds in fiscal year

2024-25 for GPS monitoring of sex offenders that are estimated to need monitoring beginning

n the 2023-25 biennium.

• Pr

ovide $153,300 GPR and 5.0 FTE GPR positions in fiscal year 2023-24 and $319,000 GPR

and 10.0 FTE GPR positions in fiscal year 2024-25 to convert part-time pharmacy technicians

to full-time pharmacy technicians at the Department of Corrections. This conversion will

improve pharmacy workflow and employee retention.

• Prov

ide $386,400 GPR in fiscal year 2023-24, $429,300 GPR in fiscal year 2024-25, and

5.0 FTE GPR positions for a training team at the Department of Corrections.

• Prov

ide $527,900 GPR in fiscal year 2023-24, $566,000 GPR in fiscal year 2024-25, and

6.0 FTE GPR positions to create a regional maintenance team for the Department of

Corrections. This team would not be tied to any specific institution and would be involved in

projects outside the scope of day-to-day operations.

• Prov

ide $464,000 GPR in fiscal year 2023-24, $533,500 GPR in fiscal year 2024-25, and

5.0 FTE GPR positions to supplement the Department of Corrections’ Facilities Infrastructure

and Innovative Technologies team, which maintains IT infrastructure in institutions.

• Provide 3.0 FTE GPR positions in each year to convert three Department of Corrections IT

contractors to full-time, state employees.

• Expan

d the conditions under which an individual may have their criminal record expunged of

a crime.

• Require that courts order the use of an ignition interlock device for all offenses involving the

use of alcohol and operating a motor vehicle while intoxicated.

• Provide $1 million GPR over the biennium to reimburse counties for circuit court costs related

to implementing pretrial risk assessments.

• Creat

e an intensive preservation services program in three regions of the state with

$16,567,500 GPR and $1,321,500 PR-F in fiscal year 2023-24, $16,595,900 GPR and

$1,349,900 PR-F in fiscal year 2024-25, and 2.0 FTE PR-F positions for families at risk of

having a child or youth enter either out-of-home care or the juvenile justice system.

• Develop a youth justice data and reporting system and continue funding for the Youth

Assessment Screening Instrument with $936,700 GPR and $435,100 PR-F in fiscal year

2023-24 and $945,500 GPR and $435,100 PR-F in fiscal year 2024-25.

• Provide $1,563,500 GPR in fiscal year 2023-24 and $2,102,000 GPR in fiscal year 2024-25

to create a state training program for youth justice workers and provide continued training for

those workers, as well as booster training for the Youth Assessment Screening Instrument.

• Modify the youth justice statutes and appropriations to provide more flexibility in allocating

Youth Aids funding and to enhance system improvements.

• Create a new sum sufficient appropriation and provide $5 million GPR in each fiscal year to

reimburse counties for increased costs associated with raising the age that a circuit court or

municipal court exercises adult court jurisdiction on individuals from 17 to 18 years of age.

• Create a Juvenile Justice Reform Review Committee at the Department of Children and

Families to study and provide recommendations on reforming the juvenile justice system,

including jurisdiction and sentencing, to the Department of Children and Families and the

Department of Corrections on options for juvenile justice reforms.

• Allocate $750,000 GPR starting in fiscal year 2024-25 to provide counties with bonuses for

operating secured residential care centers for children and youth that serve youth from more

than one county, as required by current law.

• Prov

ide 174.0 FTE GPR positions to the Mendota Juvenile Treatment Center to fully staff the

expansion of the facility. The expansion will increase capacity at the Mendota Juvenile

Treatment Center from 29 to 93 juveniles, and will serve juvenile girls for the first time.

• Incr

ease expenditure authority by $250,000 PR in each year at the Department of Justice for

local law enforcement supporting the Internet Crimes Against Children Task Force.

• Provide $387,800 GPR in fiscal year 2023-24, $601,000 GPR in fiscal year 2024-25, and

7.0 FTE all funds positions at the Department of Justice to provide the Office of School Safety

with additional permanent positions.

• Provide an additional $12.5 million GPR for the treatment alternatives and diversion program

to greatly expand the program. Convert $1 million of treatment alternatives and diversion

program funding in each year from justice information system surcharge funding to general

purpose revenue to address a current deficit of surcharge funding. Provide $232,000 PR in

fiscal year 2023-24 for the treatment alternatives and diversion program.

• Provide $10 million GPR over the biennium to fund and create a grant program administered

by the Department of Justice for law enforcement agencies to fund programs that recruit and

retain law enforcement officers and that promote officer wellness.

• Prov

ide $10 million GPR over the biennium to fund and create a grant program administered

by the Department of Justice to provide local governments and Tribes funding for community

policing and community prosecution programs.

• Provide $10 million GPR over the biennium to fund and create a grant program administered

by the Department of Justice to support organizations that provide services for crime victims.

• Prov

ide an additional $10 million GPR over the biennium for the Sexual Assault Victim

Services Grant Program.

• Provide an additional $5,724,700 GPR in fiscal year 2023-24 and $6,004,200 GPR in fiscal

year 2024-25, with the goal of reimbursing counties up to 90 percent of their eligible costs

associated with providing services to crime victims and witnesses.

• Prov

ide $190,800 PR of expenditure authority in fiscal year 2023-24 to help offset overtime

costs for beat patrol efforts of law enforcement.

• Prov

ide $58,400 GPR in fiscal year 2023-24, $78,000 GPR in fiscal year 2024-25, and

1.0 FTE GPR position at the Department of Justice to continue providing training and

resources for prosecutors on sexual assault cases. This position would continue the

responsibilities of a project position, created under 2019 Wisconsin Act 9, that ends in

July 2023.

• Prov

ide $116,900 GPR in fiscal year 2023-24, $155,800 GPR in fiscal year 2024-25, and

2.0 FTE GPR positions to serve as field prosecutors at the Division of Criminal Investigation’s

Wausau and Appleton field offices and assist with investigating and prosecuting drug-related

offenses.

• Prov

ide $773,500 GPR in fiscal year 2023-24, $961,500 GPR in fiscal year 2024-25, and

10.0 FTE GPR positions at the Department of Justice to investigate crime in the department’s

Division of Criminal Investigation. The positions include both special agents and criminal

analysts.

• Prov

ide $237,300 GPR in fiscal year 2023-24, $513,200 GPR in fiscal year 2024-25, and

9.0 FTE GPR positions at the Department of Justice for additional staff at the State Crime

Laboratories.

• Provide $185,800 GPR in fiscal year 2023-24, $242,800 GPR in fiscal year 2024-25, and

3.0 FTE GPR positions at the Department of Justice to help district attorneys prosecute

violent crime.

• Incr

ease funding for grants for Tribal law enforcement programs by $695,000 PR-S in each

year.

• Creat

e the Office of Missing and Murdered Indigenous Women within the Department of

Justice, which will administer a grant program, provide training, and provide services to crime

victims and witnesses who are citizens of a Tribal Nation. Provide $3,675,200 GPR in fiscal

year 2023-24 and $3,733,500 GPR in fiscal year 2024-25 for the office, create a new 1.0 FTE

GPR unclassified office director position that will be appointed by the Attorney General, and

2.0 FTE GPR positions for classified office staff.

• Creat

e a hate crime hotline administered by the Department of Justice to encourage victims

to report hate crimes and enable law enforcement to better address hate crimes.

• Prov

ide $250,000 GPR in fiscal year 2024-25 to create a grant program administered by the

Department of Justice to promote the protection of elders and support the elder abuse

hotline.

• Convert $817,000 FED in each year and 5.0 FTE FED positions at the Department of Justice

from federal Victims of Crime Act (VOCA) funding to general purpose revenue to address a

projected reduction of VOCA funding available for awards to local agencies providing

services to crime victims.

• Provide $441,100 GPR in fiscal year 2023-24, $550,000 GPR in fiscal year 2024-25, and

6.0 FTE GPR positions for the Department of Justice to administer new and existing

programs.

• Prov

ide $790,000 GPR of one-time funding in each year of the biennium for the court system

to install digital audio recording devices for court reporting.

• Make cha

nges to certificates of qualification for employment to improve administration.

• Create a false claims with qui tam provision for private parties to bring an action on behalf of

the state where fraud against state-funded programs is alleged.

• Suppor

t the Wisconsin State Laboratory of Hygiene’s mission to provide forensic toxicology

services, such as testing, to coroners, medical examiners, and law enforcement, by providing

$2 million GPR in each year of the biennium.

E. PROTECTING & CONSERVING OUR NATURAL RESOURCES

• Prov

ide $100 million all funds over the biennium for a municipal grant program for the testing

and remediation of per- and polyfluoroalkyl substances (PFAS) by local units of government.

• Prov

ide $729,400 SEG in fiscal year 2023-24, $934,200 SEG in fiscal year 2024-25,

10.0 FTE SEG permanent positions, and 1.0 FTE SEG four-year project position in the

Department of Natural Resources for the implementation of the PFAS action plan. This

includes:

o 2.0 FTE positions to develop and prioritize a list of sources that may be emitting

PFAS compounds into the air.

o 3.0 FTE positions for drinking and groundwater monitoring.

o 2.0 FT

E positions to develop and implement standards to remediate PFAS

contamination on sites where a responsible party cannot be identified, or the

responsible party does not have the financial means to remediate the site.

o 2.0 FTE positions to develop water quality guidelines and standards related to PFAS,

particularly for wastewater treatment facilities.

o 1.0 FT

E position to develop standards related to PFAS disposal.

o 1.0 FT

E position to develop sampling methodologies and perform sampling in cases

where wildlife is suspected of having been contaminated by PFAS.

• Prov

ide $1,480,000 SEG in fiscal year 2023-24 and $730,000 SEG in fiscal year 2024-25 for

statewide monitoring and testing for PFAS. This includes:

•

o $600,000 annually for testing at state-led sites.

o $55,000 ann

ually for waterway monitoring.

o $50,000 f

or testing fish and wildlife

o $25,000 annually for testing wastewater treatment plants.

o $750,00

0 one-time in fiscal year 2023-24 for sampling municipal water supplies.

• Provide $900,000 SEG annually for emergency measures related to PFAS, such as providing

temporary drinking water to homes impacted by groundwater contamination.

• Prov

ide $1 million SEG in fiscal year 2023-24 for the collection, disposal, and replacement of

firefighting foam that contains PFAS.

• Est

ablish and enforce various environmental standards for PFAS, including creating

enforceable standards for PFAS in groundwater, to ensure the public health of all

Wisconsinites and further hold potential polluters accountable.

• Provide $200,000 GPR over the biennium for PFAS awareness and outreach activities.

• Est

ablish the Office of Environmental Justice within the Department of Administration,

created by Executive Order #161, to facilitate collaboration across state agencies and

engage with farmers and agricultural industries, environmental justice advocates,

communities of color, Tribal Nations, and low-income populations, and design climate policy

recommendations that reduce emissions and pollutants and address the cumulative and

harmful impact of their concentration within these communities. Provide a 1.0 FTE GPR

unclassified office director position appointed by the secretary of the Department of

Administration and a 1.0 FTE GPR position and associated funding to support the office.

• Provide $25,000 GPR per year to the Office of Environmental Justice for the execution of

state and local government climate risk assessment and resilience plans. Provide a 1.0 FTE

GPR unclassified position for a new chief resilience officer to oversee the development and

execution of these plans.

• Establish a technical assistance grant program to assist municipalities and Tribal Nations in

developing plans to be carbon-free by 2050. Provide $125,000 GPR per year at the Office of

Environmental Justice for this purpose.

• Requ

ire comprehensive plans developed by municipalities to address climate change, require

that local hazard mitigation plans include consideration of climate change, and require

communities throughout the state to include climate change impacts in their community

health improvement assessment and plans.

• Establish a Clean Energy Small Business Incubator within the Department of Administration,

which will provide business development, mentorship, and expertise to Wisconsin small

businesses operating in the clean energy sector. Provide $5 million GPR over the biennium

to support a one-time pilot clean energy small business start-up grant program. Additionally,

provide a 1.0 FTE GPR position to administer the incubator and the grant program.

• Establish the existing Office of Sustainability and Clean Energy in statute within the

Department of Administration, which will continue to promote the development and use of

clean and renewable energy across the state, advance innovative sustainability solutions that

improve the state’s economy and environment, diversify the resources used to meet the

state’s energy needs, and generate family supporting jobs by promoting the expansion of

Wisconsin’s clean energy economy. Provide an additional 1.0 FTE GPR classified position

and associated funding to support the office.

• Creat

e a renewable and clean energy research grant with one-time funding of $4 million GPR

in fiscal year 2023-24 administered by the Office of Sustainability and Clean Energy within

the Department of Administration.

• Provide $62,800 PR in fiscal year 2023-24, $82,300 PR in fiscal year 2024-25, and 1.0 FTE

PR project position at the Department of Natural Resources to assist with reviewing and

permitting solar energy projects.

• Double the required utility contribution for the Focus on Energy program from 1.2 percent to

2.4 percent of annual operating revenues, which would generate an additional $100 million in

annual funding for the program.

• Modify the types of eligible projects under the Focus on Energy program to include projects

that deploy electric technologies to meet energy needs currently served by other fuel

sources.

• Require the Public Service Commission to consider the social cost of carbon when

determining whether to issue construction certifications. Additionally, require the commission

to reevaluate the appropriate social cost of carbon every two years, in consultation with the

Department of Natural Resources, and report the findings in a biennial report to the standing

legislative committees.

• Authorize regulated utilities to offer inclusive on-bill financing to residential and commercial

customers for energy efficiency improvements, allowing customers to pay for energy

efficiency improvements incrementally over time and making such improvements more

accessible.

• Expand the types of remaining costs incurred by retiring power plants that can be securitized

using environmental trust bonds, which can result in cost savings for customers.

• Specify that the establishment of discounted utility rates for low-income customers does not

qualify as rate discrimination, if rates are approved by the Public Service Commission and

published in the utility’s schedule or tariffs.

• Provide $170,000 PR annually for advanced engineer modeling software and associated

licensing to allow the Public Service Commission to better evaluate utility rate adjustment

applications.

• Modif

y current law to require electric utilities with owned generation to submit integrated

resource plans evaluating the utility’s ability to meet long-term electricity demand and its

planned approach to integrate clean energy into its energy generation portfolio.

• Provide $773,400 PR in fiscal year 2023-24, $612,500 PR in fiscal year 2024-25 and 2.0 FTE

PR positions to the Public Service Commission to establish a water loss control training

program for water utilities serving populations of 3,300 or more residents, to modernize the

commission’s water utility reporting database, and to support an enhanced water utility data

reporting compliance review program.

• Reserve $50,000 annually in intervenor compensation funding for entities who plan to review

economic and environmental issues impacting low-income populations.

• Increase civil penalties for gas pipeline operators that commit safety violations, aligning state

statutes with guidance issued by the U.S. Department of Transportation.

• Allow the Department of Safety and Professional Services to analyze recent state

groundwater study data to determine whether the age of private on-site wastewater treatment

systems correlates with contamination found in private wells near the system. Provide

increased expenditure authority of $116,000 PR in fiscal year 2023-24 and $100,000 PR in

fiscal year 2024-25 to support this analysis and protect public health through effective system

regulation.

• Conti

nue the Private On-Site Wastewater Treatment System Replacement and Rehabilitation

Program for residence owners and small commercial establishments meeting certain family

resident income and system eligibility criteria. The program allows those eligible to repair or

replace failing private on-site wastewater treatment systems. Increase expenditure authority

for the Department of Safety and Professional Services by $840,000 PR in both years of the

biennium for grants and provide 2.0 FTE PR permanent positions in each year to meet

industry demand for expedited review of septic plans.

• Prov

ide $250,000 PR in fiscal year 2023-24 and 1.0 FTE PR position to establish a stretch

energy code working group to develop a stretch energy code for Wisconsin. A stretch energy

code permits local governments to voluntarily enact regulations that improve energy

efficiency relative to the base energy code.

• Prov

ide $97,400 GPR in fiscal year 2023-24, $129,800 GPR in fiscal year 2024-25, and

1.0 FTE GPR soil health faculty position at the Wisconsin State Laboratory of Hygiene to

advance, sustain, and protect the state’s soil resources as well as the agriculture sector that

is highly dependent on these soil resources.

• Prov

ide the Wisconsin State Laboratory of Hygiene with $121,800 GPR in fiscal year 2023-24

to purchase instrumentation that will allow for more rapid testing of state waters for

cyanobacterial blooms to better track and inform the public of these harmful toxins.

• Incl

ude utility-owned battery storage facilities in the calculation of shared revenue utility aid

payments to counties and municipalities to encourage the construction of facilities necessary

for renewable energy storage and incentivize local governments to host this form of utility

property in their communities.

• Incl

ude utility-owned electric vehicle charging infrastructure in the calculation of shared

revenue utility aid payments to counties and municipalities to promote the use of renewable

energy and reward local governments that host these facilities in a manner similar to other

utility property.

• Creat

e the Revitalize Wisconsin program with $5,640,000 SEG in fiscal year 2023-24,

$3,640,000 SEG in fiscal year 2024-25, and 1.0 FTE SEG position. The program will address

discharges of hazardous substances or the existence of environmental pollution, help reduce

the backlog of Dry Cleaner Environmental Response Fund claims, and aid in the disposal of

waste materials at abandoned properties.

• Auth

orize $15 million in bonding for contaminated sediment removal from sites in the Great

Lakes or their tributaries that are on Wisconsin’s impaired waters list.

• Prohibit the sale and use of sealants that contain coal tar, coal tar pitch, coal tar volatiles, or

high concentrations of polycyclic aromatic hydrocarbons, which are considered cancer-

causing substances.

• Auth

orize $11 million in environmental fund-supported general obligation bonding authority

for the Department of Natural Resources for urban nonpoint source cost-sharing and the

municipal flood control program.

• Prov

ide $1 million SEG in expenditure authority in each year for the Department of Natural

Resources to provide funding for the preparation of flood insurance studies and other flood

mapping projects.

• Prov

ide $169,800 GPR in fiscal year 2023-24, $220,300 GPR in fiscal year 2024-25, and

2.0 FTE GPR project positions to coordinate the development and implementation of total

maximum daily load restoration plans on impaired waters throughout the state.

• Prov

ide $250,000 SEG in each year for the Wisconsin Clean Sweep Program, which

provides reimbursement to communities that collect and dispose of household hazardous

wastes, agricultural pesticides, and prescription drugs.

• Prov

ide $6,135,900 all funds in fiscal year 2023-24 and $6,735,900 all funds in fiscal year

2024-25 for grants to counties for county conservation staff to support land and water

conservation activities.

• Prov

ide $310,800 SEG in fiscal year 2023-24, $330,300 SEG in fiscal year 2024-25, and

1.0 FTE SEG position to maintain and improve the Water ePermitting System at the

Department of Natural Resources.

• Prov

ide $80,000 SEG as one-time funding to modernize the Department of Natural

Resources’ interactive Permit Primer. This system serves as an interactive wizard to guide

permit applicants through the permit application process.

• Auth

orize $10 million in bonding for grants to counties for capital projects that implement land

and water resource management plans under the Targeted Runoff Management Program.

• Prov

ide an additional $400,000 SEG in each year for non-capital projects under the Targeted

Runoff Management Program.

• Auth

orize $7 million in bonding and $100,000 SEG for grants to counties for implementation

of land and water resource management plans, including cost-share grants to landowners

through the Soil and Water Resource Management Program.

• Prov

ide $250,000 SEG in each year to support the Producer-Led Watershed Protection Grant

Program.

• Expan

d the Farmland Preservation Planning Grant Program to allow for activities that

implement certified farmland preservation plans.

• Prov

ide $2.4 million SEG in each year to continue the Commercial Nitrogen Optimization

Pilot Program, as well as the cover crop insurance program.

• Creat

e a new biodigester planning grant, funded at $250,000 GPR in each year.

• Prov

ide $50,000 GPR annually for biodigester operator certification grants.

• Prov

ide $62,800 SEG in fiscal year 2023-24, $82,300 SEG in fiscal year 2024-25, and

1.0 FTE SEG position to support the permitting of advanced wastewater treatment systems

on Wisconsin farms.

• Incr

ease the annual fee assessed to operators of Concentrated Animal Feeding Operations

from $345 to $545.

• Incr

ease the well notification fee and establish an application fee for well variance

construction approvals for wells.

• Prov

ide $49,400 GPR in fiscal year 2023-24, $64,300 GPR in fiscal year 2024-25, and

1.0 FTE GPR position for administration of the Wastewater General Permit Program and to

enhance compliance monitoring efforts.

• Creat

e a Water Stewardship Grant Program with $250,000 GPR in each year. The program

will reimburse agricultural producers who undertake the process to gain certification under

the Alliance for Water Stewardship Program.

• Prov

ide $5 million GPR annually and 1.0 FTE GPR position to continue a Water Utility

Assistance program to help customers defray the cost of water utility bills.

• Create a new food waste reduction pilot project, funded at $100,000 GPR in each year.

• Prov

ide $250,000 SEG in fiscal year 2024-25 as one-time funding for management and

implementation of a landfill food waste study.

• Provide $200,000 GPR in each year for manoomin (wild rice) stewardship efforts in ceded

territory waters.

• Provid

e $227,100 SEG in fiscal year 2023-24, $197,100 SEG in fiscal year 2024-25, and

1.0 FTE SEG permanent position at the Department of Natural Resources for brook trout

habitat improvement efforts.

• Prov

ide $109,900 SEG in fiscal year 2023-24, $146,500 SEG in fiscal year 2024-25, and

2.0 FTE SEG permanent positions as additional staff support for the Winnebago Lake

System.

• Prov

ide $196,000 SEG in fiscal year 2023-24 in one-time funding for maintenance on the

Department of Natural Resources’ research vessels.

• Prov

ide $775,000 SEG in fiscal year 2023-24 in one-time funding for the development of a

forestry industry strategic plan and roadmap.

• Incr

ease funding for the Urban Forestry Grant Program by $475,000 SEG in each year to

combat emerging threats to urban forestry.

• Prov

ide $589,500 SEG in each year for terrestrial invasive species prevention.

• Incr

ease funding for the County Wildlife Habitat Grant program by $128,300 SEG in each

year.

• Incr

ease funding for the Wisconsin Forest Landowner Grant Program by $250,000 SEG in

each year.

• Incr

ease funding for the Weed Management Area Grant Program by $60,000 SEG in each

year.

• Inc

rease funding for the County Forest Administration Grant Program by $200,000 SEG in

each year to support salaries for county forest administrators in a new continuing

appropriation.

• Incr

ease funding for the Sustainable Forestry Grant Program by $50,000 SEG in each year to

support sustainable forest management projects on county forest land.

• Prov

ide $667,500 SEG in each year to establish a grant program for reforestation, forest

regeneration, and forest management activities on public lands.

• Prov

ide $286,200 SEG in fiscal year 2023-24, $341,600 SEG in fiscal year 2024-25, and

2.0 FTE SEG permanent positions to support additional seedling production in the state

nursery program.

• Prov

ide $395,000 SEG in each year for tree planting projects on state-owned lands.

• Provide $657,600 SEG in fiscal year 2023-24 in one-time funding for the Department of

Natural Resources to purchase new fire suppression equipment to combat wildfires.

Additionally, provide $150,000 SEG in each year to establish a fire suppression equipment

replacement schedule.

• Provide $84,200 SEG in fiscal year 2023-24, $110,800 SEG in fiscal year 2024-25, and

1.0 FTE SEG permanent position at the Department of Natural Resources to hire a forestry-

focused outreach officer to work with groups underserved by traditional forestry and

environmental higher education programs.

• Provide $148,200 SEG in fiscal year 2023-24 and $144,500 SEG in fiscal year 2024-25 for

operations costs in the Menominee River State Recreation Area, Sauk Prairie State

Recreation Area, Lizard Mound State Park, Mazomanie Day Use Area, State Ice Age Trail

Areas, and Brule River State Forest Cabin.

• Provide $11,402,600 all funds in fiscal year 2023-24 and $10,402,600 all funds in fiscal

year 2024-25 for capital development projects in the state park system.

• Prov

ide $350,000 SEG in each year to implement a maintenance plan for mobile equipment

in the state park system.

• Expan

d the Department of Natural Resources’ online vehicle admission sales system to

include trail pass sales. Provide $338,000 SEG in each year for the online system in a new,

continuing appropriation.

• Provide $165,000 SEG in each year to expand accessible outdoor recreation opportunities in

the state park system.

• Prov

ide $152,500 SEG in each year in one-time funding for technology upgrades in the state

park system. Additionally, provide $29,400 SEG in each year for credit card terminal security

software.

• Prov

ide $2,925,000 SEG in fiscal year 2024-25 in one-time funding to electrify campsites in

state parks and forests.

• Increase funding for utility expenses in the state park system by $431,900 SEG in fiscal

year 2023-24 and $440,600 SEG in fiscal year 2024-25.

• Prov

ide $1,095,500 SEG in each year to hire additional limited term employees and contract

services to support the state park system.

• Create an Erosion Control Loan Program to assist municipalities and owners of homes

located on the shores of Lake Michigan, Lake Superior, or the Mississippi River where the

structural integrity of municipal buildings or homes is threatened by erosion of the shoreline.

Provide $7 million SEG in fiscal year 2023-24 as an initial capitalization for the programs.

• Authorize $10 million in bonding for the repair, reconstruction, and removal of dams. Of the

authorized amount, provide $500,000 in bonding in fiscal year 2023-24 in one-time funding to

rebuild the Sheboygan Marsh Dam located near the Department of Natural Resources’

Sheboygan Marsh Wildlife Area.

• Est

ablish an annual license fee for large dams that would vary according to hazard rating.

• Incr

ease the GPR match limit for all taxpayer designations for the endangered species

program by $450,000 in each year.

• Increase the inland waters trout stamp to $14.75 per stamp.

• Incr

ease the nonresident deer hunting license to $182.25 per license.

• Prov

ide $1 million SEG in one-time funding in fiscal year 2023-24 to issue grants for the

purchase of deer carcass disposal sites to limit the spread of chronic wasting disease. Also,

provide $50,000 SEG in each year for chronic wasting disease education for hunters.

• Improv

e capacity for and response to both chronic wasting disease testing and foreign animal

disease surveillance by providing the Veterinary Diagnostic Laboratory with $352,400 GPR in

fiscal year 2023-24, $469,800 GPR in fiscal year 2024-25, and 6.0 FTE GPR positions in

both years of the biennium.

F. ADDITIONAL KEY PRIORITIES

• Increase the general fund’s reserve by $500 million beginning in fiscal year 2023-24 to

provide a stronger cushion against economic turbulence, an economic recession, or

unexpected downturns in state tax collections. This action increases the General Fund

reserve amount to $600 million and will increase the general fund’s immediately available

cushion against economic downturns to approximately 2.8 percent of fiscal year 2023-24

estimated tax collections. The current law reserve is inadequate as it amounts to under one-

half of one percent (0.5 percent) of fiscal year 2023-24 projected tax collections. Under

current law, the General Fund’s reserve amount increases at a mere $5 million annually,

meaning that it would take 100 years for the reserve amount to climb from $100 million to

$600 million. Instead of taking a full century, this action implements this prudent gain

immediately.

• Deposit $500 million to the Budget Stabilization Fund in fiscal year 2023-24 to raise the total

balance of the state’s ‘rainy day fund’ to over $2.2 billion, an amount which will be more than

10 percent of fiscal year 2023-24 estimated tax collections. This will be the largest balance

ever in the state’s ‘rainy day fund’, approximately seven times greater than the amount at the

end of fiscal year 2017-18.

• The act

ions to place a combined $1 billion into the general fund reserve and the ‘rainy day

fund’ will greatly improve the state’s ability to sustain its constitutional obligations and other

commitments to schools, families, and communities into the future.

• Tr

ansfer $1.955 billion from the general fund balance to the Capital Improvement Fund to

support the 2023-25 Capital Budget. This will reduce the need to authorize new bonding and

reduce future debt service costs for the state.

• Incr

ease the statutory general obligation refunding authority to $11.235 billion.

• Provide $93.9 million GPR in fiscal year 2023-24 to adjust agency compensation budgets to

reflect an additional biweekly payroll.

• Incr

ease staffing in the Division of Capitol Police within the Department of Administration by

12.0 FTE PR-S positions and $850,100 PR-S in fiscal year 2023-24 and $1,079,100 PR-S in

fiscal year 2024-25 to provide appropriate security without having to rely on outside law

enforcement agencies for assistance.

• Est

ablish the Wisconsin Front Door online services hub, which would allow users to access a

comprehensive portfolio of state resources in a consolidated, centralized, and easy-to-use

format. The Governor’s budget provides $2 million GPR in fiscal year 2023-24 to support the

development and launch of the Wisconsin Front Door hub and $465,000 GPR annually

thereafter to support maintenance and upkeep of the portal as well as supporting data-

sharing initiatives among state agencies. The Wisconsin Front Door would improve the online

experience for customers of state government in the following ways:

o Requi

re only a single customer credential and account profile to access services from

across state government.

o Devel

op a searchable, online centralized customer data hub that makes over

700 publicly available datasets currently found on state agency websites accessible.

o Devel

op online services and data-centric websites, oriented around key issues and

interests of Wisconsin residents.

• Provide one-time funding to the Department of Administration to support a redesign of the

One Stop Business Portal website to promote user-friendliness.

• Creat

e a Local Government Grant Resource Team at the Department of Administration, by

providing $411,300 GPR in fiscal year 2023-24, $548,400 GPR in fiscal year 2024-25 and

5.0 FTE GPR positions, to assist local governments in navigating state and federal grant

application processes, bolstering Wisconsin’s ability to draw down federal resources.

• Implement the following initiatives within the Department of Administration to enhance state

and local government cybersecurity efforts. In total, the budget invests almost $23.7 million

all funds over the biennium at the Department of Administration to strengthen the state’s

cybersecurity resources.

o In conj

unction with the University of Wisconsin System and the Wisconsin Technical

College System Board, provide funding and position authority to support a 24/7 state

operation center to provide IT security monitoring, prevention, and response for state

agencies and local units of government.

o Prov

ide funding to support annual testing of state government cybersecurity

defenses.

o Prov

ide funding to support a security event information and monitoring system to

ensure ongoing compliance with state and federal security-related IT event reporting

requirements.

o Prov

ide additional funding to implement additional cybersecurity technologies within

the Division of Enterprise Technology within the department.

o Provide 1.0 FTE PR position and associated expenditure authority to support the

department with adherence to IT security policy.

• Provide one-time and ongoing funding to support the cost of information technology services

the Department of Administration provides to the Wisconsin Historical Society, the

Department of Safety and Professional Services, and the Office of the Commissioner of

Insurance.

• Provide ongoing funding in certain state operations appropriations to reflect increased

supplies and services costs related to the provision of current programmatic requirements.

• Est

ablish “Wisconsin For All” Diversity, Equity and Inclusion initiatives that promote and

advance equity across state government and state programs. These initiatives include:

o Creat

ion of a cabinet-level chief equity officer within the Department of Administration

and agency equity officers at 18 state agencies and commissions that will collaborate

to identify opportunities to advance equity in government operations, including

determining how current government practices and policies impact communities of

color and individuals with disabilities.

o Est

ablish and provide funding for a Governor’s Fellowship Program, Governor’s

Progress Summit and a state-sponsored annual diversity, equity, and inclusion

conference for state and local government employers.

o Est

ablish and provide expenditure authority for an equal opportunity paid internship

program for state agencies and the Legislature for eligible young adults that are from

a household with an income that does not exceed 300 percent of the federal poverty

level.

o Expan

d the Wisconsin Supplier Diversity Program to establish supplier certification

programs for businesses owned by persons with disabilities and LGBTQ-owned

business enterprises. Expand the existing disabled veteran-owned program to all

veterans. Modify statutory purchasing goals accordingly. Additionally, eliminate all

fees currently charged for the existing disabled veteran-owned and woman-owned

business certifications and provide an additional 3.0 FTE GPR positions and

associated funding to support the expanded program.

• Make a one-time transfer of $18 million PR-S from the capital planning and building

construction services appropriation to the Building Trust Fund in fiscal year 2023-24 to better

support building project design efforts.

• Make a one-time transfer of $40 million PR-S from the facilities operations and maintenance

appropriation to the Capital Improvement Fund in fiscal year 2023-24 for state building

projects enumerated in the Capital Budget.

• Improve services from the Department of Administration’s Division of Facilities Development

by adding 10.0 FTE PR-S positions, including construction representatives and capital project

managers, and $964,000 PR-S in fiscal year 2023-24 and $1,285,400 PR-S in fiscal year

2024-25.

• Add a 1.0 FTE PR-S maintenance staff position to provide services for the new veterans

museum funded with $45,100 PR-S in fiscal year 2023-24 and $60,100 PR-S in fiscal year

2024-25.

• Acquire a new aircraft for the University of Wisconsin Organ and Tissue Donation Program

using base resources within the Department of Administration to replace an aircraft that can

no longer be used for that program. In addition, provide $312,500 PR-S in fiscal year 2023-24

and $395,200 PR-S in fiscal year 2024-25 to support two pilots, a mechanic, and other

related costs to maintain the new aircraft.

• Acqui

re a new aircraft for the Department of Military Affairs that will be used to continu

ounterdrug operations as well as other supportive duties like search and rescue. This

aircraft will replace one that was decommissioned by the federal government, and the new

aircraft will be purchased using master lease financing funded with up to $2,577,300 PR-S in

fiscal year 2023-24 and $2,599,100 PR-S starting in fiscal year 2024-25. These funds will

also support an additional mechanic position and maintenance costs at the Wisconsin Air

Services within the Department of Administration.

• Adjust the Department of Administration’s Technology for Educational Achievement (TEACH)

Universal Service Fund appropriation to accommodate new and expanded programming at

the Department of Public Instruction and to reflect estimated expenditures. A portion of the

reduction is offset by new GPR. Additionally, modify current law to remove outdat

eferences to a grant program that ended in June 2021.

• Transfer the University of Wisconsin worker’s compensation claims administration program t

the D

epartment of Administration to increase efficiencies and program continuity.

• Provide additional expenditure authority in the Department of Administration’s existing risk

management administrative appropriation for excess insurance premiums due to the

unpr

edictability of insurable events.

• Provide one-time funding to the Bureau of Risk Management within the Department of

Administration to complete a comprehensive inventory and valuation of state-owned historical

and fine arts collections.

• Establish the Higher Educational Aids Board as an administrative attachment to t

epartment of Administration and provide an additional 1.0 FTE GPR position an

penditure authority to support the increased administrative duties.

• Transfer administration of high-voltage transmission line fee administration from th

epartment of Administration to the Public Service Commission.

• Create an unclassified 1.0 FTE PR-S Director of Native American Affairs position to actively

manage relations between the state and Tribal Nations, funded with $90,400 PR-S Tribal

gam

ing revenues in fiscal year 2023-24 and $120,500 PR-S in fiscal year 2024-25.

• Provide agency Tribal liaisons at the Departments of Administration; Tourism; Workforc

evelopment; Agriculture, Trade and Consumer Protection; Corrections; Justice; and t

Public Service Commission, which currently do not have a position dedicated to this purpose.

• P

rovide $25,000 GPR in fiscal year 2023-24 to establish a Tribal relations pilot project at the

Department of Natural Resources.

• C

reate a new GPR appropriation within the Department of Administration’s Division of

Gaming dedicated to investigations and outreach services. Provide an overall increase of

$75,600 GPR in fiscal year 2023-24 and $96,700 GPR in fiscal year 2024-25 to support

1.0 FTE GPR position in addition to replacing existing gaming revenues.

• Provide ongoing funding to the Department of Employee Trust Funds to support ongoing

oper

ational expenses associated with the modernization of the department’s insuranc

adm

inistration system. Additionally, provide 7.0 FTE SEG positions and associate

penditure authority to support the long-term information technology modernization project,

which includes the modernization of the insurance administration system and the pensi

adm

inistration system. Moreover, direct the department to include a request for funding t

support the modernization of the pension administration system in its 2025-27 biennial

budget submission.

• Provide one-time and ongoing funding and position authority to the Department of

Administration to support changed processes and increased workload in the department’

human resources, payroll and information technology areas resulting from the large-scale

information technology modernization project at the Department of Employee Trust Funds.

• Provide 7.0 FTE SEG positions and associated expenditure authority to the Department of

Employee Trust Funds to provide support for the department’s customer service functions for

members and employees.

• Provide 2.0 FTE SEG positions and associated expenditure authority to the Department of

Employee Trust Funds to better support the department’s accounting and actuarial

responsibilities.

• Adjust the premium structure of the state and University of Wisconsin System employee

Income Continuation Insurance program to remove consideration of employee sick leave

balances in the employee premium calculation in favor of a selected elimination period

structure. Additionally, realign oversight of all of the Department of Employee Trust Funds

employee disability insurance programs to the Employee Trust Funds Board.

• Shift oversight of the Department of Employee Trust Funds’ Office of Internal Audit from the

Office of the Secretary to the Employee Trust Funds Board.

• Modify current law to align language regarding the Department of Employee Trust Funds’

allocation of trust fund earnings with current administrative practice.

• Reinstate domestic partnership benefits for all state and local government employee

insurance programs administered by the Department of Employee Trust Funds. These

benefits were eliminated under 2017 Wisconsin Act 59, effective January 1, 2018.

• Modify current law to make references to marriage, spouses and parentage gender-neutral,

providing greater flexibility and inclusion for all individuals and families.

• Remove the Legislature’s exemption from open records law by requiring that records and

correspondence of any member of the Legislature be included in definition of a public record

to provide greater transparency for the people of Wisconsin. Provide a 1.0 FTE GPR position

and related funding at the Legislative Technology Services Bureau to administer the

requirement.

• Reduce barriers to public access to information by raising the threshold at which an authority

may charge an open records location fee, increasing the threshold amount from $50 to $100

and defraying out-of-pocket costs to requesters in an effort to increase government

transparency and accountability.

• Provide $1,000 GPR in one-time funding in each year to allow the Office of Open

Government to update documents and training materials related to open records.

• Repeal

statutory modifications made in 2017 Wisconsin Act 369 during the extraordinary

session in December 2018 related to the expansion of legislative powers and duties,

including: (a) advice and consent of the Senate in relation to gubernatorial nominations;

(b) ability of the Legislature to retain legal representation for legislators, legislative staff, and

the Legislature; (c) administrative rule modifications; and (d) approval of Capitol security

changes.

• Increase transparency by preventing anonymous objections from members of the Joint

Committee on Finance and instead requiring that the member and the nature of the objection

for any objection to items before the Joint Committee on Finance for passive review be

announced publicly.

• Allow existing board or council members to remain in their appointed positions once their

term has expired only until the Governor has made a nomination for appointment to the same

position.

• St

atutorily create a Legislative Human Resources Office and provide 2.0 FTE GPR positions.

• Provide $156,100 GPR in fiscal year 2023-24 and $16,600 GPR in fiscal year 2024-25 for the

Wisconsin Elections Commission to work with the Department of Transportation to implement

automatic voter registration. The commission should facilitate the initial registration of all

eligible electors as soon as practicable. Appropriate $349,000 SEG in fiscal year 2023-24 to

the Department of Transportation to address one-time costs.

• Modify certain voter identification requirements to comply with current court rulings. In

addition, require the University of Wisconsin System and the Wisconsin Technical College

System to issue identification cards that meet the revised requirement.

• Provide $902,000 GPR in fiscal year 2023-24, $1,036,000 GPR in fiscal year 2024-25 and

10.0 FTE GPR positions to support the Wisconsin Elections Commission’s request to create

an Office of Election Transparency and Compliance that will respond to inquiries and

complaints regarding potential election law violations. This office will also be provided

resources to improve audits on voting equipment, databases and potentially hire an outside

contractor to review certain information such as the voter lists.

• Allow a county or municipal clerk to canvass absentee ballots on the day before an election

after working with the Wisconsin Elections Commission to ensure it will be conducted fairly

and effectively.

• Eliminate the restriction on how soon a person may complete an absentee ballot in person.

• Modify the scheduling of special elections to ensure they are scheduled with sufficient time to

comply with federal requirements for sending ballots to military and overseas voters.

• Enable the Wisconsin Elections Commission to reimburse counties and municipalities for

certain costs incurred in the administration of special primaries and special elections by

creating a GPR sum sufficient appropriation for this purpose.

• Restore residency requirements that ensure a resident of Wisconsin is eligible to vote in an

election in a municipality or ward if the voter has been a resident of that location for at least

ten consecutive days before an election.

• Require polling places to post a voter bill of rights that informs voters of voting rights

guaranteed under current law.

• Modify the Wisconsin Elections Commission’s training appropriation to explicitly allow funds

to be used to train municipal and county clerks on all aspects of election administration, in

addition to voter ID requirements.

• Modify the Wisconsin Elections Commission’s recount appropriation to allow local units of

government and petitioners to be reimbursed in a timely manner.

• Restore prior law that would require public high schools (and allow private high schools) to be

a location for voter registration for eligible students and staff.

• Provide $400,000 GPR in fiscal year 2023-24 for a one-time grant program to provide

municipalities with Badger Books, the electronic poll book authorized for use in Wisconsin.

• Create a new campaign finance system with $183,300 GPR and $110,000 PR of one-time

financing in each fiscal year.

• Increase funding by $203,500 PR-S in fiscal year 2023-24 and $218,700 PR-S in fiscal

year 2024-25 to create an unclassified deputy secretary of state position and a classified

office operations associate position within the Office of the Secretary of State and provide

one-time financing for move costs.

• Creat

e 1.0 FTE PR-S position for an office manager in the Office of the State Treasurer,

funded with $52,200 PR-S in fiscal year 2023-24 and $69,600 PR-S in fiscal year 2024-25.

• Provide 2.0 FTE PR positions and associated expenditure authority to strengthen the Public

Service Commission’s cybersecurity initiatives.

• Provide additional funding to the Wisconsin Employment Relations Commission to support

current operations.

• Provide $50,700 GPR in fiscal year 2023-24 and $45,700 GPR in fiscal year 2024-25 to the

Wisconsin Women’s Council for limited term employee costs to provide additional operational

support.

• Modify the National and Community Service Board federal administration appropriation

language which would allow the board to expend all federal funding received under the

appropriation without additional approval and increase the appropriation by $72,000 FED in

fiscal year 2023-24 and $82,800 FED in fiscal year 2024-25 to reflect projected program

administration costs over the next biennium.

• Provide $99,900 PR-S in fiscal year 2023-24, $120,400 PR-S in fiscal year 2024-25 and

1.0 FTE PR-S position to the National and Community Service Board to better fulfill match

requirements for federal funding, which would allow for program expansion. An additional

$25,000 GPR in fiscal year 2023-24 and $30,100 GPR in fiscal year 2024-25 were provided

to the Department of Administration help pay the match that is associated with the board’s

increase.

• Prov

ide $1 million GPR annually to provide funding for the Black Historical Society.

• Suppor

t the development and building of the new Wisconsin History Center Museum by

providing $2.5 million GPR over the biennium to the Wisconsin Historical Society, which will

enable the society to manage the transition to a new facility by effectively maintaining and

preparing priceless Wisconsin historical artifacts for the move.

• Prov

ide $4.8 million GPR and 4.0 FTE GPR positions to the Wisconsin Historical Society to

transition the provision of information technology services to the society from the University of

Wisconsin-Madison to the Department of Administration’s Division of Enterprise Technology.

• Transfer $100 million GPR from the General Fund to the Artistic Endowment Fund, managed

by the Wisconsin Artistic Endowment Foundation. Interest earnings generated from these

funds will be used to support the arts across the state through both this foundation and the

Wisconsin Arts Board.

• Increase funding for the Wisconsin Arts Board by $552,500 GPR over the biennium to

maximize the drawdown of available federal funds and continue supporting individuals and

organizations engaged in the arts.

• Prov

ide $1,115,900 PR on a one-time basis in fiscal year 2024-25 for the Department of

Financial Institutions to modernize the department’s charitable and professional

organization’s technology system. This project will better enable Wisconsin residents to

determine whether a charitable organization merits their donations.

• Prov

ide $753,700 PR in fiscal year 2023-24, $976,900 PR in fiscal year 2024-25, 9.0 FTE PR

permanent positions, and 1.0 FTE PR project position to the Department of Safety and

Professional Services to ensure existing and newly created boards attached to the

department receive policy, legal, and administrative services to manage professions.

• Creat

e a separate appropriation in the Department of Safety and Professional Services to

eliminate barriers to utilizing contracted support and to ensure transparent accounting of

vendor revenues.

• Prov

ide $271,200 GPR in fiscal year 2023-24 and $371,100 GPR in fiscal year 2024-25 t

estore state support of 50 percent of rent costs for the Wisconsin State Laboratory of

Hygiene.

• E

xpand the Veterinary Diagnostic Laboratory’s diagnostic testing capabilities to detect new

outbreaks and emerging pathogens in order to improve animal health and the productivity

and profitability of Wisconsin agriculture industry. Provide $91,100 GPR in fiscal year

2023-24 and $121,500 GPR in fiscal year 2024-25 for a 1.0 FTE GPR bioinformatician

position.

• P

rovide $449,200 PR-S in fiscal year 2023-24, $414,200 PR-S in fiscal year 2024-25, an

0 FTE position to provide additional staffing and equipment in the Bureau of Laboratory

Services at the Department of Agriculture, Trade and Consumer Protection.

• P

rovide $3,012,700 GPR in fiscal year 2023-24 and $2,950,900 GPR in fiscal year 2024-

o expand the Bureau of Correctional Enterprise’s metal stamping operations. Increas

unding will allow the Department of Corrections to replace license plates for all vehicles with

registrations over ten years old.

• P

rovide $70,000 GPR in each year to increase support for the Wisconsin Livestock

Identification Consortium.

• Authorize the Department of Natural Resources to use state-issued identification cards to

validate residency for the purchase of recreational licenses.

• P

rovide $10,000 SEG in each year to support the annual maintenance of the snowmobil

aut

omated reporting system.

• P

rovide $194,300 SEG in each year to modernize off-road vehicles utilized by t

epartment of Natural Resources’ law enforcement staff.

• Provide $723,700 GPR in fiscal year 2023-24 and $851,900 GPR in fiscal year 2024-25 as

one-time funding for the digitization of hard copy records at the Department of Natural

Resources.

• C

reate truth-in-labeling protections for manoomin (wild rice) that is traditionally harvested.

• A

lign the ballast water program with federal ballast water statutes under the federal Vessel

Incidental Discharge Act.

• P

rovide $1,832,100 PR in fiscal year 2023-24 and $2,092,100 PR in fiscal year 2024-25 t

mplement new and ongoing cybersecurity initiatives and related maintenance for the court

system.

• P

rovide $11,300 PR-S in fiscal year 2023-24, $15,000 PR-S in fiscal year 2024-25, an

25 FTE PR-S position to support central administrative work for the court system.

• Create a new continuing appropriation to provide for the collection of payments from counties

for materials or other services for county law libraries. This was recommended in a recent

compliance audit of the courts system.

State Budget Overview

III. STATE BUDGET OVERVIEW

A. PRESENTATION OF THE GOVERNOR’S 2023-25 BUDGET

The Governor’s recommended budget for the 2023-25 biennium is presented in its customary

components. The operating budget for all agencies and their programs is submitted to the

Legislature in the budget bill, the Executive Budget Book and this Budget in Brief. The capital budget

will be submitted as a budget amendment after the State Building Commission has approved a

recommended building program for the 2023-25 biennium.

B. EXPENDITURES

The Governor recommends an operating budget of $52.1 billion in fiscal year 2023-24 and

$51.7 billion in fiscal year 2024-25. These figures include all four major funding sources and all state

agencies and programs (see Chart 1). On an annual basis, the Governor’s all funds budget for fiscal

year 2023-24 represents an increase of $7,915.8 million (17.9 percent) over the fiscal year 2022-23

adjusted base, and the budget for fiscal year 2024-25 represents a decrease of $409.3 million

(-0.8 percent) compared with fiscal year 2023-24.

CHART 1

: FISCAL YEAR 2024-25 BUDGET BY FUND SOURCE

The largest portion of the state budget is funded from general purpose revenue (GPR), which

includes the individual income tax, state sales tax, corporate income tax and various other taxes (see

Chart 2).

GPR

46%

15%

FED

30%

SEG

CHART 2: FISCAL YEAR 2024-25 GPR TAX REVENUE BY TYPE

Federa

l revenues (PR-F or SEG-F) are the second largest source of funds in the state budget. The

amounts budgeted represent state agency estimates of the various federal program grants expected

to be received. Corresponding state matching dollars, where applicable, are budgeted in the other

state funding sources. Since it is not possible to predict future congressional budget action, the

Governor’s budget generally assumes no changes in federal funding except where noted.

Progr

am revenue (PR-O) is received from user fees that finance specific activities such as public

utility regulation, agricultural commodity inspections and State Fair Park admissions. Program

revenue is generally budgeted to reflect the anticipated demand for these activities.

Segre

gated revenues (SEG-O) include revenues from such sources as the motor fuel tax, hunting

and fishing license fees, and lottery ticket sales. These revenues are deposited in segregated funds

such as the Transportation Fund, the Conservation Fund and the Lottery Fund, which are credited

with any interest they earn. Segregated revenues can only be used for specific purposes and are not

general revenues of the state.

TABLE

1: LARGEST BIENNIAL GPR INCREASES OVER BASE

($ in millions)

Department of Public Instruction

$2,809

Shared Revenue and Tax Relief

1,099

Department of Administration

1,019

Public Service Commission

755

Department of Health Services

716

Department of Children and Families

512

Department of Workforce Development

265

All Other Changes

1,656

TOTAL

$8,831

Individual Income

45%

Sales

35%

Corporate

14%

Public Utility

Excise

Insurance

Other

TABLE 2: TEN LARGEST GENERAL PURPOSE REVENUE PROGRAMS

($ in millions)

FY25

Budgeted

Percent of

Total

Cumulative

Percent

General and Categorical School Aids

$8,974.1

37.5%

Medical Assistance and Related Programs

3,738.3

15.6%

53.1%

State Property Tax Credits

1,599.8

6.7%

59.8%

Shared Revenue

1,445.0

6.0%

65.8%

Corrections

1,428.1

6.0%

71.8%

University of Wisconsin System

1,343.4

5.6%

77.4%

Technical College System

618.0

2.6%

80.0%

Community and Social Service Aids

385.3

1.6%

81.6%

Child Care Assistance

259.8

1.1%

82.7%

Homestead, Earned Income and Other Individual

Income Tax Credits

239.0

1.0%

83.7%

Top Ten Program Total

$20,030.8

83.7%

Debt Service (not included above)

274.0

1.1%

84.8%

Debt Service for Appropriation Obligation Bonds

336.9

1.4%

86.2%

All Other Programs

3,293.1

13.8%

100.0%

GPR Total

$23,934.9

Detail may not add due to rounding.

CHART 3

: FISCAL YEAR 2024-25 GPR BUDGET ALLOCATION BY PURPOSE

The Gov

ernor recommends a GPR budget of $24.2 billion in fiscal year 2023-24 and $23.9 billion in

fiscal year 2024-25. On an annual basis, the Governor’s GPR budget for fiscal year 2023-24 is a

spending increase of $4,561.9 million (23.2 percent) over the fiscal year 2022-23 base, and for fiscal

year 2024-25 is a spending decrease of $292.6 million (-1.2 percent) over fiscal year 2023-24.

Aids to Individuals

28%

University

Corrections

All Other

State

Operations

11%

Local Assistance

50%

C. POSITIONS

The Governor’s budget recommendations include authorization for 73,733.01 FTE state positions

from all fund sources by the end of the next biennium (fiscal year 2024-25). This represents an

increase of 816.55 FTE positions from the fiscal year 2022-23 adjusted base of 72,916.46. From

GPR funds, the budget provides 35,982.41 FTE positions, an increase of 368.60 from the fiscal year

2022-23 adjusted base of 35,613.81.

Table 3 demonstrates the changes from the adjusted base level FTE positions to the second year of

the biennium (fiscal year 2024-25).

TABLE

3: FISCAL YEAR 2024-25 FTE POSITION CHANGES OVER BASE

GPR

FED

SEG

All Funds

Adjusted Base

35,613.81

10,978.93

21,477.32

4,846.40

72,916.46

Agency Requests

126.60

-400.45

126.17

14.00

-133.68

Governor’s Recommendation

242.00

11.48

390.50

306.25

950.23

TOTAL

35,982.41

10,589.96

21,993.99

5,166.65

73,733.01

Posi

tions are increased in the following key areas:

• Prov

ide 16.0 FTE PR positions in each year to ensure that the Department of Safety and

Professional Services provides efficient and effective processing of license applications,

helping to bolster our state’s workforce and our economy.

• Meet su

bstantially increased public demand for licensed occupation assistance in the

Department of Safety and Professional Services’ professional credential processing customer

service center by providing 14.0 FTE PR permanent positions.

• Prov

ide 21.0 FTE PR positions to the Department of Safety and Professional Services to

effectuate scheduled plan review services to better serve the design-build industry, and

perform plan reviews within four weeks, improving customer satisfaction.

Scheduled plan

reviews place construction projects on the agency’s review calendar early in the project time

line so that review is accomplished in a timely and efficient manner.

• Prov

ide 3.0 FTE GPR positions to increase Job Centers of Wisconsin staffing and expand the

number of individuals who receive services and obtain family-supporting employment.

• Prov

ide 10.0 FTE SEG permanent positions, and 1.0 FTE SEG four-year project position in

the Department of Natural Resources for the implementation of the PFAS action plan.

• Provide funding and 6.0 FTE GPR positions to create an Animal Disease Response and

Prevention Unit at the Department of Agriculture, Trade and Consumer Protection. The unit

will respond to all animal disease outbreaks and enhance secure food supply planning.

• Prov

ide 5.0 FTE all funds positions to increase Milwaukee child welfare operations staffing

with additional case aides, performance monitors, and positions to support on-site child care

for children removed from their homes.

• Prov

ide 7.0 FTE all funds permanent positions to the Department of Justice, Office of School

Safety to support and enhance school safety initiatives.

• Prov

ide 10.0 FTE GPR positions at the Department of Justice to investigate crime in the

department’s Division of Criminal Investigation and 3.0 FTE GPR positions at the Department

of Justice to help district attorneys prosecute violent crime.

• Prov

ide additional assistant district attorney positions across the state by: (a) providing

add

itional 42.9 FTE GPR assistant district attorney positions in each fiscal year; (b) providing

1.4 FTE GPR positions to increase part-time positions in three counties; and (c) converting

5 FTE positions from PR to GPR for positions where grant funding has or will run out.

• P

rovide 50.0 FTE GPR positions for the State Public Defender to hire additional

administrative staff and reduce oversized staff workloads.

• P

rovide 36.0 FTE GPR positions to the Department of Corrections to expand capacity for the

Earned Release Program, substance use disorder programming, and other need

ogramming at adult institutions.

• H

elp prepare individuals who are currently incarcerated for postprison employment by

providing 6.0 FTE GPR positions for staffing at correctional institutional job centers.

• P

rovide 2.0 FTE GPR positions at the Department of Health Services to administer t

pansion of the Opening Avenues to Reentry Success program, a program that strives t

reduce recidivism in Department of Corrections clients who experience a serious mental

illness through intensive case management and mental health services.

• P

rovide 11.0 FTE all funds positions to the Department of Health Services, Office of

Caregiver Quality to increase investigations into allegations of misconduct in long-term car

facilities and expand the background check program.

• P

rovide 19.68 FTE GPR positions and 12.32 FTE FED positions and associated funding t

he Bureau of Assisted Living at the Department of Health Services to manage the bureau’

ncreased workload and to address backlog.

• P

rovide 92.0 FTE GPR positions to expand the intensive treatment program at Norther

isconsin Center to address the growing list of individuals with developmental disabilities

who are referred for treatment by the program.

• Provide 7.0 FTE SEG positions to expand the Veterans Outreach and Recovery Program

ithin the Department of Veterans Affairs, to provide outreach mental health services

and

upport to veterans who may have a mental health condition or substance use disorder.

D. BUDGET BALANCE

TABLE 4: GENERAL FUND CONDITION UNDER GOVERNOR’S BUDGET

($ in millions)

2023-25 Governor’s Budget

2025-27 Estimates

FY23

FY24

FY25

FY26

FY27

OPENING BALANCE, JULY 1

$4,298.9

$7,098.8

$1,908.3

$634.1

-$771.2

REVENUES AND TRANSFERS

Taxes

$21,353.3

$21,730.5

$22,545.2

$22,516.2

$22,509.5

Departmental Revenues

Tribal Gaming Revenues

0.0

Other

712.0

715.6

566.4

501.1

457.5

Total Available

$26,364.2

$29,544.9

$25,019.9

$23,651.4

$22,195.8

APPROPRIATIONS, TRANSFERS AND RESERVES

Gross Appropriations

$19,776.6

$24,227.5

$23,934.9

$23,971.8

Compensation Reserves

106.0

365.3

581.6

Transfers

Transportation Fund

97.3

137.3

173.4

173.5

Medical Assistance Fund

527.8

Unemployment Insurance Fund

60.0

Capital Improvement Fund

1,955.0

Budget Stabilization Fund

500.0

Transportation Facilities

Revenue Obligation

Repayment Fund

379.4

Family and Medical Leave

Benefits Insurance Fund

243.4

Artistic Endowment Fund

100.0

Veterans Homes Institutional

Operations Account

10.0

Less Estimated Lapses

-1,302.2

-281.2

-304.2

Total Expenditures

$19,265.5

$27,636.6

$24,385.8

$24,422.6

$24,422.7

BALANCES

Gross Balance

$7,098.8

$1,908.3

$634.1

-$771.2

-$2,226.9

Less Required Statutory Balance

-95.0

-600.0

Net Balance, June 30

$7,003.8

$1,308.3

$34.1

-$1,371.2

-$2,826.9

Structural Balance

$2,799.8

-$5,190.5

-$1,274.2

-$1,405.3

-$1,455.7

Detail may not add due to rounding.

The est

imated four-year fund condition statement is balanced through fiscal year 2024-25. The

estimates for the 2025-27 biennium do not assume any projected growth in revenues or expenditures.

However, prospective tax impacts and commitments to additional expenditures made in this biennium

for the next are addressed in the estimates for fiscal years 2025-26 and 2026-27.

Stat

e statute also requires showing the impact of the Governor’s budget on the state’s budget

balance under generally accepted accounting principles (GAAP). Unlike the modified accrual basis of

the budget as published in the statutes, these principles require that revenue and expenditures be

accounted for when they occur.

Wisconsin currently has a positive balance under generally accepted accounting principles due, in

part, to the state’s Budget Stabilization Fund, or “rainy day” fund, which had a fiscal year 2021-22

ending balance of $1.734 billion, approximately 8.5 percent of fiscal year 2022-23 estimated GPR

expenditures. While fiscal year 2021-22 General Fund tax revenues exceeded budget estimates, no

transfer was made to the Budget Stabilization Fund because the fund’s balance exceeded 5 percent

of estimated GPR expenditures in the fiscal year.

Under g

enerally accepted accounting principles, the Budget Stabilization Fund is accounted for as

part of the General Fund. The Annual Comprehensive Financial Report for fiscal year 2021-22, the

most recent available, showed that Wisconsin ended the fiscal year with a positive GAAP balance of

$4.645 billion. This balance was supported by the Budget Stabilization Fund and the large fiscal year

2021-22 budgetary closing balance in the General Fund. In fiscal year 2021-22, the General Fund

benefited from higher than budgeted tax revenues and the increased Federal Medical Assistance

Percentage that all states received under the federal public health emergency and that reduced state

General Fund expenditures for Medical Assistance benefits.

These l

arge budgetary balances in the General Fund and Budget Stabilization Fund offset other

pressures that often result in a GAAP deficit. To reduce one of those pressures, the Governor’s

budget recommends moving the date computer aid payments are made to taxing jurisdictions from

July to May. This shift will ensure that school districts receive their payment within the appropriate

school year and provide counties and municipalities with full annual payments in the first half of their

fiscal year.

TABLE

5: ESTIMATED GENERAL FUND CONDITION SUMMARY ACCORDING TO GENERALLY

ACCEPTED ACCOUNTING PRINCIPLES

($ in millions)

2022-23

2023-24

2024-25

Opening Balance

$4,645.5

$7,511.2

$2,681.3

Revenue

Estimated Taxes

$21.353.3

$21,730.5

$22,545.2

Departmental Revenues and Transfers

712.0

715.6

566.4

Tribal Gaming Revenue

0.0

Total Revenue

$22,065.3

$22,446.1

$23,111.6

Total Available

$26,710.8

$29,957.3

$25,792.9

Less Total Appropriations (Net)

$19,265.5

$27,636.6

$24,385.8

Balance Before Change in Adjustments to GAAP

$7,445.3

$2,320.7

$1,407.1

Net Contributions to Balance Adjustments in GAAP

(change from prior year)

Budget Stabilization Fund*

$65.9

$581.0

$77.4

Computer Aid

67.7

Municipal and County Shared Revenue

-288.1

-21.4

Estimated Closing Balance

$7,511.2

$2,681.3

$1,463.1

*Under GAAP, the General Fund includes the Budget Stabilization Fund, so any activity in that fund

impacts the General Fund’s GAAP balance.

Detail may not add due to rounding.

E. DEBT MANAGEMENT

State debt management is necessary to ensure that long-term capital needs can be met at an

affordable level. State debt management historically looks at various standards, including, but not

limited to, annual GPR debt service as a percentage of GPR tax revenues. These standards help

ensure that annual debt service does not consume a burdensome share of the state’s budget and

that overall indebtedness remains within reason for the State. In addition to annual debt service that

is paid from GPR, other annual debt service is paid from various program revenue and segregated

fund sources.

In th

e next biennium, the standard relating to annual GPR debt service is expected to be reduced

compared to the percentages for the 2021-23 biennium. Projected annual debt service payments, as

a percentage of GPR tax revenues, is 2.06 percent for the second year of the 2023-25 biennium,

compared to 2.26 percent for the second year of the 2021-23 biennium. This reflects proactive debt

management of the State as evidenced by the continued ability of the State to refinance debt for

savings. While the municipal bond market has seen increases in rates from their historical lows,

below historical average interest rates and municipal bond market dynamics have continued to

provide opportunities for debt service savings. Like refinancing a mortgage, the State takes

advantage of these lower interest rates and market dynamics to lower its debt service costs.

The 2023

-25 executive budget is prepared on the assumption that the State’s market access and

bond ratings will be maintained. Wisconsin’s general obligation bonds continue to carry the following

ratings - Aa1/AA+/AA+/AAA from Moody’s, S&P, Fitch, and Kroll, respectively. In addition, in August

2021 Kroll upgraded its rating on the State to AAA from AA+. Finally, Wisconsin’s bonds are received

favorably by the investment community. Investors and rating agencies recognize the State’s

increased liquidity position and the strength of its fully-funded pension program.

Speci

fic bonding recommendations for the building program will be included in the capital budget bill,

which will be submitted later. In addition to proposed borrowing in the 2023-25 executive budget,

future bond issues of the State will also include previously authorized but unissued debt for previously

approved projects and multiyear commitments.

F. CASH MANAGEMENT

While the 2021-23 biennial budget is balanced as required by state law, cash challenges may occur

at various times during the year. They arise from the difference between the “statutory/budgetary

basis” on which the budget is built and the “cash basis” on which the state must pay its bills. There

are significant differences in the timing of receipts and payments, particularly on dates of major state

aid payments.

Any cash shortfalls are accommodated through short-term borrowing. Most often, this borrowing

occurs automatically by using the balances of other state funds. More than ten years ago, operating

notes were issued in times of significant need for cash, or if the operating notes are cheaper than

using the cash of other state funds. Due to increased liquidity of state funds, an operating note has

not been issued by the state since fiscal year 2011-12.

Budget Initiatives

By Subject Area

IV. BUDGET INITIATIVES BY SUBJECT AREA

A. INVESTING IN WHAT’S BEST FOR KIDS

SCHOOLS

Wisco

nsin’s schools need a bold investment from the state now more than ever to ensure they have

the resources they need to support students, educators, and staff. Notably, the Office of Children’s

Mental Health reported that in the pandemic’s third year, both educators and students anticipated

potential challenges around meeting heightened academic, economic, and social-emotional needs,

with students of color expressing the most concern in a national survey.

While

Wisconsin’s educators and students were strong and resilient during the pandemic and in its

aftermath, the pandemic also laid bare the need for additional investments to ensure that our students

are in the best position possible to succeed and that our schools are in the best position possible to

prepare them for their future as community members in our state. Unfortunately, during the last

biennial budget, the Legislature chose not to provide schools with the significant new, spendable

revenue that was needed to meet the challenges our schools faced. That cannot continue and must

be addressed in this budget. Our schools and our students need us to meet this moment with

significant investment, action, and attention beyond that of any previous state school budget.

These ne

eds are particularly acute in the areas of student mental health, educational attainment, and

child nutrition, as well as the urgent need for enhanced general school funding and resources

including a robust educator workforce.

Mental

Health

Acc

ording to the Office of Children’s Mental Health, school connectedness—the feeling of belonging

in a school that cares about each student—positively impacts student mental health. Kids who feel

connected to at least one person at school have significantly better mental health than those who lack

a connection to school. These connections were diminished during the pandemic, and kids continue

to fight to overcome lost school connections.

Addi

tionally, on December 6, 2022, the Department of Public Instruction released the results of its

most recent Youth Risk Behavior Survey that was administered on a voluntary basis in Fall 2021. The

survey contained several key findings, including:

• Wis

consin students reported experiencing significant mental health challenges while having

fewer supports at school and at home.

• Of s

tudents responding to the survey, 52.2 percent reported “significant problems with

anxiety.”

• Of r

esponding students, 80.5 percent of students who identify as lesbian, gay, or bisexual

reported significant anxiety, as did two-thirds of female students.

• Over

one-third of all Wisconsin students surveyed (33.7 percent) reported feeling sad or

hopeless almost every day for more than two weeks in a row, a significant increase of

5.2 percentage points since 2019. Rates of sadness and hopelessness were also higher

among lesbian, gay or bisexual students and female students.

• Alar

mingly, 18 percent of students reported contemplating suicide in the 12 months prior to

answering the survey.

Two c

urrent school mental health aid programs are funded at $22 million GPR per year in total.

Based on knowledge gained from above-referenced data, feedback from healthcare professionals,

and voluminous anecdotal information, this sum is unlikely to meet even a fraction of the current need

for mental health support for Wisconsin’s K-12 students. Therefore, in response to the rising number

of students experiencing mental health difficulties and the severity of these challenges, the Governor

is proposing historic, necessary increases for schools in this area. Over the biennium, these proposed

investments would total more than $270 million GPR and will help our students achieve higher levels

of personal and educational achievement and fulfillment by providing every local educational agency

with $100 per pupil and guaranteeing every local educational agency would receive at least $100,000

annually. These investments include:

• $117.9 m

illion GPR per year to continue the Governor’s “Get Kids Ahead” initiative, which is a

comprehensive school-based mental health services program. The Governor’s proposal

enhances predictability of funding by providing base and per pupil payments, rather than

competitive grants, and expands the types of activities eligible for coverage by the funds,

including telehealth services.

• $18 mil

lion GPR per year to support school mental health professionals. Currently, only

increased social worker expenses are reimbursable by the state for schools; under the

Governor’s proposal, school counselors, psychologists, and nurses would also be covered,

as well as telehealth services. $580,000 GPR in each year for training of school staff in

mental health, bullying prevention, compassion resilience, restorative practices, and other

evidence-based strategies. In addition, the Governor recommends modifying Medicaid

school-based services to allow participating school districts to retain 100 percent of the

federal funding received for those services as opposed to the 60 percent share they currently

receive. This will result in school districts receiving an estimated additional $112 million of

federal funding over the biennium.

Improving Learning

The COVID-19 pandemic undoubtedly affected the academic outcomes of students across the nation,

including Wisconsin students, and exacerbated existing learning disparities.

The For

ward exam results for school year 2021-22 show that we have work to do on improving

reading outcomes for kids, especially for students of color and those that are economically

disadvantaged. The Governor’s budget addresses these disparities, investing in our students who

need additional support by targeting over $110 million GPR over the biennium toward the

foundational academics of reading, literacy, and mathematics.

The Gov

ernor’s budget includes $20 million GPR over the biennium for early literacy and reading

improvement. Specifically, the funding will support 56 regional coaches, half focused on evidenced-

based literacy instructional practices and the other half focused on early reading instructional

practices. Additionally, the Governor’s budget provides almost $5 million for organizations that do

auxiliary literacy work to augment the efforts of teachers in the classroom, including The Literacy Lab,

Reach Out and Read, and the Reading Corps. In addition, the Governor recommends investing

$1,485,000 over the biennium in adult literacy supports and $5 million over the biennium for a new

“Do the Math” personal financial literacy initiative.

Wisconsin must also address the heightened challenges posed by students who are struggling to

learn English while at the same time trying to maintain academic attainment at the same levels as

their peers.

CHART 4: STATE SUPPORT FOR SCHOOL COSTS TO EDUCATE ENGLISH LEARNERS

DECLINED SIGNIFICANTLY

The Gov

ernor’s budget supports these efforts by increasing funding more than $74 million GPR over

the biennium to address elevated instructional costs for English learners in all school districts:

• $8,199,

100 GPR in fiscal year 2023-24 and $14,153,200 GPR in fiscal year 2024-25 in the

Department of Public Instruction’s bilingual-bicultural aid program to reimburse costs for

schools with higher concentrations of English learners. This additional support is intended to

increase the state’s current reimbursement rate of approximately 8 percent to 20 percent by

the end of the biennium.

• $25,992,000

GPR in each year for a new Aid for English Language Acquisition program. In

fiscal year 2020-21, the current bilingual-bicultural aid reimbursement program left 321 school

districts and 22,399 English learners without any state support to address costs. This new aid

program will ensure all school districts have enhanced state support for helping English

learners succeed.

• $310,50

0 GPR over the biennium to formalize the process for Wisconsin English learners to

earn a Seal of Biliteracy and to provide support to school districts that assist students in

achieving this seal.

The Governor’s budget also includes $10 million GPR for the Milwaukee Mathematics Partnership

and $20 million GPR for out-of-school time grants, which will reinforce school day lessons and help

kids avoid risky behaviors once the school day is over.

Nutr

ition

According to the School Nutrition Association of Wisconsin, alleviating school-age hunger is

foundational to academic achievement, cognitive and physical development, social and behavioral

response skills, workforce preparedness, and overall health and wellness. However, recipients of free

or reduced-price lunch may feel stigmatized as “poor” or “different” relative to their peers.

10%

15%

20%

25%

30%

35%

40%

45%

50%

$20

$40

$60

$80

$100

$120

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23 (est.)

FY24 (est.)

FY25 (est.)

Aidable Expenditures in Millions

(Green represents Governor's proposal)

Aidable Expenditures (Prior Year) Percent Reimbursement

Further, according to the University of Wisconsin Food Security Project, food insufficiency among

Wisconsin households with kids reached its highest level of the pandemic at 15 percent in October

2020. While this level generally declined over the next year, falling to around 5 percent by fall 2021, it

increased sharply to approximately 13 percent by spring 2022. More troubling, throughout the

pandemic, food insufficiency in Wisconsin has been more than four times as high among Black

households as white households.

A universal school meal program not only demonstrates a commitment to our students’ health and

academic success, it also frees students of the worry of lunch shaming and helps eliminate at least

one of the racial and economic disparities that affect kids’ learning. Knowing all of this, the Governor

proposes a “Healthy Meals, Healthy Kids” initiative with $120 million GPR in fiscal year 2024-25 to

fully fund school breakfasts and lunches for all kids, ensuring kids are prepared for the school day

and experience less anxiety about the source of their next meal. Additionally, the Governor proposes

providing $2.75 million GPR to incentivize schools to support Wisconsin’s farmers, food producers,

and local economies by enhancing reimbursement for meals that include locally sourced foods.

Ove

rall funding

The federal government has been an invaluable partner in helping Wisconsin address the effects of

the pandemic, including providing extra resources for schools.

Acc

ording to FutureEd, as many school districts reopened buildings during the 2020-21 school year,

about $2.4 billion in federal pandemic response funding went toward cleaning and equipping schools

to prevent the spread of COVID-19, as well as upgrading school air quality and ventilation. School

districts may spend federal pandemic relief dollars through September 2024, and a separate analysis

by FutureEd showed that at least half of districts are planning to spend the third round of federal

funds on HVAC upgrades. The one-time nature of the federal coronavirus relief funding does not

allow school districts to address needs, pandemic-related or otherwise, on a sustained basis. Schools

need the ability to identify opportunities for improvement or growth and fund them accordingly with

certainty. The student who was a kindergartener in the 2020-21 pandemic-interrupted school year will

not graduate high school until the 2032-33 school year, and that student – and every student –

deserves a state budget that supports continued learning innovation and evolution. It is up to our

state, in our budget, to deliver for our schools and our kids to make sure that their ongoing

educational needs are met.

As such, the Governor’s budget provides record-setting per pupil revenue limit adjustments of $350 in

fiscal year 2023-24 and an additional $650 in fiscal year 2024-25, as well as historic increases in the

revenue “floor” for school districts. Coupled with increases in funding for general school aids of just

over $1 billion GPR over the biennium, these recommendations will allow school districts to address

student needs. The Governor’s budget further enhances school district budget flexibility by providing

$45.5 million GPR over the biennium to increase unrestricted per pupil aid by $24 per pupil in fiscal

year 2023-24 and an additional $45 per pupil in fiscal year 2024-25.

CHART 5:

GOVERNOR’S BUDGET INCLUDES RECORD PER PUPIL REVENUE LIMIT

ADJUSTMENT INCREASES

OTHE

R SIGNIFICANT INVESTMENTS

Speci

al Education

The Governor’s budget includes critical increases to address rising special education costs for school

districts, mainly $491.4 million GPR in fiscal year 2023-24 and $521.7 million GPR in fiscal year

2024-25 to increase state reimbursement of local special education costs to 60 percent in each year

of the biennium, regardless of appropriation levels (through use of a sum sufficient appropriation).

$(600)

$(500)

$(400)

$(300)

$(200)

$(100)

$100

$200

$300

$400

$500

$600

$700

CHART 6: GOVERNOR’S BUDGET WILL PROVIDE RECORD INCREASE IN STATE SPECIAL

EDUCATION REIMBURSEMENT

The Gover

nor’s budget also includes enhanced funding for high-cost special education aid of

$7.5 million GPR over the biennium, which will help schools address circumstances that require a

higher level of investment for an individual student.

Teacher

Pipeline

In August

2022, the Department of Public Instruction conducted a survey of school districts and

independent charter schools to determine the level of teacher shortage in the state. Upwards of

90 percent of respondents indicated they were having “trouble” filling positions for the 2022-23 school

year; almost 20 percent of respondents had vacancy rates of up to 10 percent; and special education,

mathematics, English language arts, and career or technical education were identified as the areas of

highest need.

To address

the tremendous challenges many schools have been facing throughout the state and

increase interest in the teaching field, the Governor’s budget includes:

• $5 million GPR in fiscal year 2024-25 for grants for “grow your own” initiatives, which may

include providing current employees with resources to gain additional higher education

credits, licenses; or certifications; engaging with community organizations; and supporting

student organizations with “future teacher” missions.

• $9.4 million GPR in fiscal year 2024-25 to provide stipends to student teachers and interns.

• $2 mill

ion GPR in fiscal year 2024-25 to provide stipends to teachers who agree to train and

oversee student teachers or interns.

• $50,000 GPR in fiscal year 2024-25 for stipends to school library interns.

Comp

uter Science

Accor

ding to the National Governor’s Association, computing jobs are the largest source of new

wages in the United States. With remote work taking on a larger share of the U.S. workforce after the

pandemic, computing jobs are more readily available outside of Silicon Valley. In Wisconsin, a

Governor’s

Recommendation

10%

20%

30%

40%

50%

60%

70%

$200

$400

$600

$800

$1,000

$1,200

1999-20

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

2024-25

Percentage of Costs Reimbursed

Funding in Millions

GPR Investment Will Remedy Over A Decade of Stagnant Special

Education Reimbursement

computer science job has an estimated average salary of $80,500. However, it is estimated that only

approximately two-thirds of Wisconsin high schools provide a foundational computer science course

offering. To help Wisconsin students compete for these important, family-supporting jobs, the state

must target computer science education specifically. Therefore, the Governor’s budget includes

funding for a new statewide computer science education coordinator for the Department of Public

Instruction, $10 million GPR over the biennium to help schools increase computer science offerings at

all grade levels, and a requirement that all high schools to offer computer science.

Child W

elfare

State an

d county child welfare agencies currently face challenges implementing the Family First

Prevention Services Act. This act was included in the federal Bipartisan Budget Act of 2018, and

Wisconsin began implementation on October 1, 2021. The act reforms federal funding for child

welfare and creates new state requirements intended to prevent kids from entering out-of-home care

in addition to encouraging states to place kids who do enter out-of-home care in family settings, such

as foster care. For the first time, the federal government will reimburse states with federal IV-E funds

for in-home services that keep kids safely in their homes. Previously, IV-E funds could not be used on

prevention services. States can now claim up to 50 percent IV-E reimbursement for approved,

evidence-based prevention services. The Governor’s budget aids the Department of Children and

Families in funding programs aimed at supporting families that need help before the problems

become severe.

The Gover

nor’s budget provides more than $35 million all funds to pilot an intensive preservation

service program in three Wisconsin regions for families at risk of having a child enter the out-of-home

care system or children and youth either in out-of-home care or the juvenile justice system.

Though Wi

sconsin, like all states, is shifting toward placing kids in family settings in foster care or

kinship care, the Governor recognizes that the healthiest place for some kids removed from their

home is a placement in a Qualified Residential Treatment Program, which can provide necessary

medical and behavioral support. The Governor is therefore restoring funding for congregate care

provider training to ensure staff at these important treatment centers have the support and education

they need to provide quality care to our kids. The Governor had proposed this funding in the 2021-23

budget, but it was made one-time by the Legislature.

The Gover

nor is also making investments in the child welfare system in Milwaukee by providing more

than $15 million GPR over the biennium to improve the continuum of care in Milwaukee child welfare

with stabilization centers, aftercare services, mental and behavioral health services and a Qualified

Residential Treatment Program. The budget also modifies Milwaukee child welfare prevention

services by replacing approximately $9 million TANF funding over the biennium with an equivalent

amount of GPR to allow for more flexibility and expand funding to support respite child care services.

The budget

also aims to improve child welfare programs in Tribal Nations. This includes modifying

subsidized guardianship statutes to ensure Tribal Nations can be reimbursed for this by the state in

the same way that counties already can. In addition, the budget adds to the support given in previous

biennia by creating GPR appropriations and expanded funding for Tribal family services and high-cost

of Tribal out-of-home care placements, providing almost $8 million GPR over the biennium.

In order

to ensure that kids in out-of-home care receive excellent support to enable them to have

healthy lives and futures, their caregivers must have the necessary support. In addition to

strengthening the child welfare infrastructure at the state and local level, the Governor’s budget

provides additional assistance directly to foster and kinship care families. Using data from a 2013

Child Trends study, the Department of Children and Families projected that, in 2022 dollars, the

average cost of caring for a kid in Wisconsin is $843 per month. Comparatively, the minimum rate for

foster care levels 2 and above covers approximately 50 percent. The base rate for kinship care and

foster care level 1 only covers approximately 36 percent of those costs. The Governor is therefore

proposing increases to provide over $1.7 million all funds over the biennium to increase foster care

age-based rates by 5 percent and allow foster care level 1 providers to receive that age-based rate.

The budget also makes kinship care providers eligible to receive those age-based rates and provides

more than $24 million TANF over the biennium.

One of the best placements for kids in out-of-home care is in a family setting, ideally with a family

member they know. The budget expands eligibility for kinship caregiving to like-kin and other close

relations to a child to provide that necessary care if it is in the best interest of the child, budgeting

more than $17 million TANF over the biennium for this purpose. The budget also provides

approximately $16.5 million GPR over the biennium for additional kinship care program support,

including flexible support payments to kinship caregivers and family search services for child welfare

agencies. These supports will help the state further align with the Family First Prevention Services

Act and encourage more family members to support relatives in out-of-home care.

Fina

lly, the Governor supports programs that are aimed at developing and supporting strong and

healthy families. As such, the budget includes over $4 million GPR in each fiscal year for the Child

Abuse and Neglect Prevention Board to fund family resource centers in regions across the state and

expands home visiting services to approximately 24 additional counties and Tribes with more than

$5 million all funds over the biennium.

Child

Care

The fi

rst few years of a child’s life are a critical time in their brain development and lay the foundation

for the rest of their life, and the Governor is committed to ensuring that every kid has access to high-

quality early childhood educational experiences.

Wisco

nsin’s child care industry has historically been under significant stress, and the pandemic

further exacerbated underlying issues, including razor-thin margins, low pay, high turnover, and a lack

of high-quality, affordable options for families. Due to lower teacher-to-child ratios and other

compliance and quality factors, payments from families often do not fully cover operational costs.

Another challenge for providers is recruiting and retaining qualified staff. Staff costs comprise roughly

80 percent of providers’ expenses. Yet because of providers’ razor-thin margins, the early childhood

education workforce generally earns on average between $10 and $13 per hour with few benefits.

These low wages have led to a 40 percent annual turnover in the child care workforce, making it

difficult for providers to sustain high-quality programs.

The financial strain on providers is a key reason Wisconsin faces an extreme shortage in infant and

toddler care and nonstandard hour care (evening, overnight, weekend), and lacks overall care

choices for families. According to the Department of Children and Families, an estimated 54 percent

of Wisconsin residents live in a child care desert defined as “any census tract with more than 50 kids

under age five that contains either no child care providers or so few options that there are more than

three times as many kids as licensed child care slots.” A lack of equitable child care access and

quality early childhood education options across the state has had fundamentally negative impacts on

Wisconsin’s families, its workforce and its economy as a whole.

The pand

emic highlighted the critical role the state’s early childhood education system plays for both

families and businesses alike and several initiatives helped stabilize the child care industry during the

COVID-19 pandemic. With bipartisan support, over $700 million of federal funds have been allocated

to the Child Care Counts payment program to provide relief and support to child care providers

throughout the state. In addition, during the 2021-23 biennium, the Governor authorized the

Department of Children and Families to raise Wisconsin Shares child care provider rates to the 80th

percentile of market rates in January 2022 to provide adequate compensation to child care providers

and relief to many families.

With many of the structural challenges in the industry remaining and federal relief funding ending in

the upcoming biennium, the future of child care is uncertain as many providers have relied on the

federal funding just to keep their doors open. A November 2022 National Association for the

Education of Young Children report based on survey results from more than 12,000 early childhood

educators nationwide revealed that upwards of 60 percent of Wisconsin responding providers said

they would have to raise their rates when the federal funding ended, while 34 percent said they would

have to cut wages or end salary increases for their employees.

Now,

more than ever, Wisconsin’s work to address pervasive challenges around access, quality, and

affordability within the early childhood education system are imperative to Wisconsin’s present and

future. In this budget, the Governor has included a historic new investment in continuing the Child

Care Counts quality payment program to address quality, affordability, access, and equity for kids

both in Wisconsin Shares and unsubsidized child care. Specifically, the Governor’s budget allocates

over $100 million all funds in fiscal year 2023-24 and over $240 million all funds in fiscal year 2024-25

to focus on infant and toddler care and early childhood education workforce. Under this initiative,

providers would continue to receive a monthly amount per child based on the provider YoungStar

rating, the child’s age, the child’s Wisconsin Shares participation, and whether the child’s

authorization is part-time or full-time. Because retaining a well-qualified workforce is critical to the

early childhood education landscape across Wisconsin, this initiative also provides a per-staff

payment that would vary based on the provider YoungStar rating and whether the staff member

works full-time or part-time. This dual strategy of investing in infant and toddler care while supporting

staff addresses the pervasive challenges around access, quality, affordability, and workforce in the

early childhood education field.

The Gov

ernor’s budget will also include funding to build additional capacity in the industry by

providing more than $22 million GPR to continue the innovative Partner Up! Program to support

partnerships between businesses who purchase child care slots for their employees and child care

providers and providing $10 million TANF for individuals interested in becoming new child care

providers.

The Gov

ernor’s budget also helps make child care more affordable for low-income families by

removing copayments for those with incomes less than 100 percent of the federal poverty level as

part of an initiative to redefine payments to providers and copayments to families for part-time vs. full-

time care. Further, the Governor’s budget helps all families offset the high cost of child care and

dependent care by expanding the state’s Child and Dependent Care Credit, providing nearly

$30 million in relief to an estimated 107,000 Wisconsinites.

In tot

al, the Governor’s budget aims to address fundamental structural problems in the child care

industry by helping existing providers offer high quality programs, support the development of new

providers, and ease the cost burden on families. A robust, well-funded early childhood education and

care system is critical for our kids, and it is critical for our workforce. Without it, Wisconsin’s ability to

continue our economic recovery will not be realized to its full potential.

B. STRENGTHENING OUR ECONOMY & FUTURE WORKFORCE

GROWING AND STRENGTHENING WISCONSIN’S WORKFORCE

Wisco

nsin’s unemployment rate is at a generational low, and the state labor market participation rate

is above the national average. The state must make investments to continue our economy’s

momentum. While these measures show that the state has a strong economy and has weathered the

pandemic well, the number of open jobs in Wisconsin is also at record highs. In October, the

Department of Workforce Development estimated the state labor shortage at 140,000 workers.

CHART 7: UNEMPLOYMENT RATE NEAR LOWEST IN DECADES

CHART 8:

RATIO OF UNEMPLOYED PERSONS PER JOB OPENING

Large cor

porations, small businesses, governments and nonprofit organizations all are seeking

qualified workers to fill jobs. Even without the pandemic, Wisconsin was on pace to have natural

population change turn negative by 2025, due to a combination of falling birth rates and an aging

population. Forward Analytics contends that migration is the solution to slowing natural population

growth, and Wisconsin will need to attract more people over the next 10 years to avert a dramatically

shrunken workforce and eroded tax base.

Governor Evers has already taken steps to put Wisconsin on track to address this demographic

challenge, and this budget makes significant investments in moving this priority forward. Decisive

policies supported by smart investments must continue to maintain our economy’s momentum,

especially as the state is in a very positive financial position and can afford to invest responsibly. As

such, the Governor’s budget builds on investments made during the pandemic using federal

pandemic relief aid by investing more than $290 million in new state money in talent development and

attraction and proposing bold policy changes to get and keep skilled individuals in the Wisconsin

economy. Investments include:

• $200 mil

lion GPR in fiscal year 2023-24 for Wisconsin Innovation Grants, a successful

workforce development program that was launched in the 2021-23 biennium by the

Department of Workforce Development and the Wisconsin Economic Development

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Bureau of Labor Statistics

0.01

0.02

0.03

0.04

0.05

0.06

0.07

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Bureau of Labor Statistics Job Openings and Labor Turnover Survey

Corporation with $128.8 million in American Rescue Plan Act funding. The American Rescue

Plan Act-funded program provided 27 regional organizations with grants to design and

implement plans to address workforce challenges, especially those exacerbated by the

pandemic. The state-backed program will include a $100 million allocation to specifically

focus on fortifying the state’s healthcare workforce by providing grants to healthcare

employers and related organizations. The program will also address long-term solutions

tailored to local communities for businesses to find workers and individuals to obtain family-

supporting jobs.

• $4.4 million GPR annually for enhanced youth service programs conducted by local

workforce development boards. While the federal government provides funding for in- and

out-of-school youth programming, such as tutoring, internships, occupational skills training,

financial literacy education, and postsecondary preparation, there are regulations limiting the

youth served and the programs provided. By allocating additional resources for this initiative,

first with American Rescue Plan Act funds and now in the Governor’s budget using GPR,

these local organizations can expand services to younger age groups and use innovative

approaches to youth engagement with employment services and work experience.

• $16.5 million GPR over the biennium for job training initiatives, including:

o Continuation of the American Rescue Plan Act-funded Worker Advancement Initiative

at $12 million GPR over the biennium.

o A new Reengaging Out-of-Work Barriered and Underserved Individuals Through

System Transformation (ROBUST) program at $4.5 million GPR over the biennium,

through which the Department of Workforce Development will conduct outreach to

populations disconnected from the labor force and prepare them to enter high-quality

jobs.

• Almost $900,000 GPR over the biennium and 6.0 FTE GPR positions for job centers within

correctional institutions, which provide incarcerated individuals with employment services to

improve their employability and prepare them for jobs once released from prison.

• Over $20 million GPR over the biennium to address the teacher shortage plaguing schools

across the state, including funding for “grow your own” initiatives and incentives for student

teachers and their mentors.

• $10 million GPR for the Wisconsin Economic Development Corporation for talent attraction

and retention collaborations.

• In addition to the $100 million health care Workforce Innovation Grant noted above, an

additional $50 million GPR for healthcare workforce shortage solutions, including:

o $22.5 million GPR over the biennium to establish an ongoing Innovation Grant

program for healthcare employers to engage in improved recruitment and retention of

long-term care providers.

o $1,576,600 GPR in fiscal year 2024-25 for the Qualified Treatment Trainee grant

program, which facilitates the licensure and certification of those obtaining or already

possessing a graduate degree in psychology, counseling, marriage and family

therapy, social work, nursing, or a closely related field. This investment aims to

reduce the bottleneck of finding certified practitioners to supervise qualified treatment

trainees and help them fulfill their supervised hours licensure requirement.

Additionally, this budget will ensure that those services provided by qualified

treatment trainees, and in the presence of a certified practitioner, are covered by

insurance.

o $8 million GPR in fiscal year 2024-25 for continuation of the WisCaregiver Careers

program, which aims to address the shortage of certified nursing assistants in the

state by supporting recruitment, training and retention of individuals to care for

nursing home residents across Wisconsin. Additionally, the Governor recommends

providing funding for healthcare innovation grants, which would help healthcare

providers implement best practices and innovative solutions to increase worker

recruitment and retention.

o $10 mil

lion GPR over the biennium for the highly successful nurse educators

program, which provides incentives for nursing professors to stay in Wisconsin to

teach the next generation of nurses.

o $7 mil

lion GPR over the biennium for a new psychiatry residency program through

the Medical College of Wisconsin

• $10 million to support training, reemployment and workforce growth in the clean energy and

“green jobs” employment sectors.

Depar

tment of Safety and Professional Services

The G

overnor’s budget employs other tools to increase the number of professionals working in the

state. The prior administration and the Legislature implemented deep cuts to the workforce at the

Department of Safety and Professional Services while failing to provide the necessary staffing

support and funding flexibility that has long been requested, leading to delays in credentialing and

construction projects and dissatisfaction among the customers the department serves.

CHART 9:

DSPS AUTHORIZED FULL-TIME EQUIVALENT (FTE) POSITION HISTORY

The Gov

ernor attempted to forge a path to rectify this egregious misstep by proposing additional

Department of Safety and Professional Services staffing in his executive budget proposals (20.0 FTE

PR positions in 2019-21, and 16.0 FTE PR positions in 2021-23); however, the Legislature approved

only a small number of positions (6.0 FTE PR in each budget). The agency’s restrictive appropriation

structure makes it difficult to nimbly address workload fluctuations. Therefore, once again, the

Governor’s budget includes an increase in personnel to get Wisconsinites to work faster, whether

through a professional credential or an accelerated project time line. The Department of Safety and

Professional Services’ staffing levels will be augmented as follows:

• 14.0 FT

E PR positions for the department’s call center, which almost doubles current staffing

levels and will significantly improve the “call answer rate,” as proven by the deployment of

American Rescue Plan Act funds for limited-time call center contracted services.

• 16.0 FTE PR positions for the department’s credential processing operations, for which

efficiency is critical to individuals seeking to gain employment in their licensed fields.

200

220

240

260

280

300

320

340

360

380

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

(excludes ARPA-funded project positions)

• 8.0 FT

E PR positions will be designated Health Team license PPAs, which will boost t

tate’s healthcare labor force and ultimately improve access to healthcare providers.

• T

he other 6.0 FTE PR positions will be dedicated to processing business and trades

credential applications. Again, this will help applicants gain employment quicker, a

pot

entially reduce project costs by shortening time to completion through an influx of

workers.

• I

n order to further improve credential processing, the Governor also will provid

e one

pos

ition for records management training and mentoring, and one paralegal to sp

eed

egal reviews of applications.

• 30.

0 FTE PR positions to implement several innovative plan review process modifications

that will be backed by a significant investment in resources. These reforms have been sought

by industry partners since at least 2019 and will decrease the cost of building projects by

decreasing plan review time. New strategies include schedule-in-advance plan review a

mall project plan reviews, as well as staff to decrease plan review and inspection wait times.

Paid Family Leave and Other Workforce Initiatives

n addition to the workforce initiatives above, the Governor is proposing a comprehensive approach to

paid family leave for workers and employers in the state. Paid family leave is critical for workers and

families, and as such is an important benefit for employers in recruiting workers. Further, it is the right

thing to do for our kids and families, ensuring that family caregivers are not put in the position of

having to choose between needing to care for a sick child, aging parent, or close relative and being

able to pay the bills. By establishing a state family leave program, Wisconsin can position itself as a

worker- and family-friendly state, while ensuring employers and employees share responsibility for

the costs of this critical benefit.

pecifically, the Governor proposes the creation of an expansive, much-needed paid family and

medical leave program, providing 12 weeks of leave for most Wisconsin workers, administered by the

Department of Workforce Development. In order to launch the program expeditiously and ensure that

workers and employers are able to reap the benefits of the program as soon as they begin to

contribute to it, the Governor will infuse the new benefit and administration trust fund with a transfer of

$243.4 million from the general fund. These funds will be used to support getting the program up and

running and to pay benefits in the first year of existence. After its launch, the program will fund such

benefits through payroll contributions shared equally by an employer and an employee. Employee

contributions will be on a pretax basis.

n addition to establishing 12 weeks of paid leave, the Governor proposes to expand eligibility for

workers to use family and medical leave (paid or not) to include:

• C

are for a new child;

• O

ccurrence of a serious health condition, including a medical quarantine;

• C

are for family members with serious health conditions (including grandparents,

grandchildren, and siblings);

• Mi

litary deployment of oneself or a spouse, child, or parent;

• U

nforeseen or unexpected closure of a child care facility; and

• A

ftermath of domestic violence or sexual assault.

he Governor also proposes several additional initiatives to support Wisconsin’s workers, including:

• I

ncreasing the state minimum wage, with an initial increase of $1.00 per hour to $8.25 per

hour upon enactment of the budget. Increases under the Governor’s budget proposal will

continue, with the minimum wage going to $9.25 per hour on January 1, 2025, and $10.25

per hour on January 1, 2026, with inflationary adjustments thereafter (with proportionately

similar adjustments to statutorily prescribed industry-specific wage rates).

• Rest

oration of many worker rights that were repealed by the Legislature, including collective

bargaining for frontline workers of state and local governments, project labor agreements,

“right to work” laws, prevailing wage protections, prohibitions on employment discrimination

(gender identification and expression, honesty and genetic testing), and enhancement of

individual ability to appeal employment discrimination or equal pay cases.

• Prov

iding a path to professional licensure (including commercial driver’s licenses, one of the

fields with the greatest number of job openings) for undocumented individuals. According to

the American Migration Council, there are an estimated 75,669 undocumented immigrants in

Wisconsin, of whom 10,517 are DACA-eligible individuals. Making Wisconsin friendlier to

individuals who want to work legally and professionally will increase access to goods or

services for residents in a variety of ways while helping the state’s economy.

Sma

ll Business Retirement Program

Acc

ording to the U.S. Small Business Administration, nearly half of Wisconsin’s workforce is

employed by small businesses. Many small business owners want to offer retirement plans to their

workers, but struggle to find simple, cost-effective options to do so. To help fill this retirement savings

gap, the Governor proposes creating a Small Business Retirement Savings Program. The program

would be established and overseen by an appointed board that would, in coordination with the

Department of Financial Institutions, contract with a vendor to administer the retirement program.

Busi

nesses with 50 or fewer employees will have the option to participate in the retirement program.

Employees who choose to enroll in a plan will be offered several investment options, including a Roth

IRA account. Payroll deductions for participating employees will be remitted to the program

administrator and, unless otherwise directed by an employee, begin at 5 percent of an employee’s

gross wages, with this percentage increasing 1 percentage point each year until a maximum rate of

10 percent is reached. This effort will enhance the long-term finances of working Wisconsinites and

support our small businesses’ efforts to remain competitive.

State

Employee Compensation Changes

The State, like many other employers, is working to recruit and retain workers in a historically tight

labor market. As other employers respond to the combination of record-low unemployment and

workforce shortages by significantly increasing wages, the State has long had limited ways to

respond and keep up. Recently, the Division of Personnel Management used its authority to create

pilot add-ons for a select few classifications where agencies are having the most difficulties recruiting

and retaining employees. The Governor’s budget makes these add-ons a permanent component of

the employee’s base wages, including funding to support security staff at both the Department of

Corrections and the Department of Health Services (discussed in the Justice section), as well as

$3.7 million GPR over the biennium to the Department of Health Services to support add-ons for

respiratory therapists, income maintenance specialists, disability program associates, disability

determination supervisors and several nursing classifications; $3.6 million GPR over the biennium to

the Department of Corrections to support add-ons for several nursing classifications; $6.7 million in

non-GPR funding to the Department of Veterans Affairs to support add-ons for several nursing

classifications and $2.2 million in non-GPR funding collectively to the Department of Administration,

Department of Safety and Professional Services and Department of Military Affairs to support add-

ons for the State Capitol Police, licensing staff and office operations associates, and military security

officers.

The Governor’s budget also recognizes that all employees have lost ground as inflation has reduced

their purchasing power and that the state must be able to offer competitive pay in order to fill

vacancies, retain our workforce, and provide quality service to the people of Wisconsin. In recognition

of this, the Governor recommends a more robust compensation package than has been advanced in

recent years. While these initiatives will have to be approved as part of the compensation plan,

funding has been placed in the compensation reserve for the following state employee compensation

initiatives. First, the budget provides $415.7 million GPR over the biennium for a general wage

adjustment for most state employees of 5 percent on July 1, 2023, and an additional 3 percent on

July 1, 2024. Second, the budget provides $39.7 million GPR over the biennium for targeted market

and parity wage adjustments for employees within certain classifications in state agencies to better

align their wages to those paid by private and other public sector employers. Third, the budget

provides $4.3 million GPR over the biennium to support development of a semiautomatic pay

progression for most classifications that will allow employees to increase pay based on performance

and experience. Fourth, the budget provides $2.1 million GPR over the biennium to support market

and parity wage adjustments for employees within information technology classifications to better

align their wages to those paid by private and other public sector employers. Fifth, the budget

provides $269,000 GPR over the biennium to support a pay progression for wardens at the

Department of Natural Resources and Capital Police within the Department of Administration. The

Governor’s proposal also includes significant investments in employees who work as part of the

criminal justice system, as discussed further on in this document.

The Gov

ernor’s budget also improves state employee benefits by: (a) providing $34.1 million GPR

over the biennium to support a new paid family and medical leave program for state and University of

Wisconsin System employees for 12 weeks annually; (b) funding paid sick leave for limited term

employees that work for state agencies; (c) decreasing the waiting period for all new state employees

to receive the employer share of their health insurance from three months to one month; (d) modifying

the vacation allowance during the first five years of state employment to improve retention of

employees for state agencies; and (e) establishing Juneteenth and Veterans Day as holidays for all of

state government.

Fina

lly, the Governor has included statutory language to establish collective bargaining rights for state

and local government frontline workers and their bargaining units. Frontline workers are defined as

employees with a substantial portion of job duties interacting with members of the public or large

populations. The Wisconsin Employment Relations Commission would settle definitional disputes.

The budget also eliminates the annual recertification requirement for state and local government

bargaining units, as well as the provision that approval by a majority of bargaining unit members

(instead of majority of the vote) is required to certify. The budget also requires employers to meet, at

least quarterly or upon change in policies affecting wages, hours and working conditions of general

employees, with certified representatives of collective bargaining units if applicable or with other

representatives, in order to receive employee input.

MIDDL

E-CLASS TAX RELIEF AND TAX FAIRNESS

The Governor’s 2023-25 biennial budget builds on the middle-income tax relief provided by the

2019-21 biennial budget and the 2021-23 biennial budget. Income tax cuts signed by the Governor

since he took office have returned $1.4 billion annually to taxpayers, overwhelmingly to the middle

class. The Governor’s 2023-25 proposals add approximately $1.2 billion over the biennium in tax

relief for low- and moderate-income Wisconsinites, especially those with kids or those who provide

care to family members.

To provide responsible relief while creating a fairer Wisconsin tax code, the Governor also

recommends limiting special tax benefits for a small group of higher income earners. These prudent

changes will make Wisconsin’s tax system more equitable by making sure higher earners who

currently benefit from specific preferences pay their fair share.

Despi

te the large fund balances available for this budget, it must be noted that ongoing tax revenues

are only growing modestly compared to inflation. Fiscal year 2021-22 collections declined 2 percent

adjusted for inflation and real revenues are currently estimated to decline in fiscal year 2022-23 and

2023-24 as well. While additional targeted tax relief can be funded through this biennial budget, steep

tax reductions without offsetting revenues elsewhere would harm the state’s ability to provide for

current services in the coming years.

CHART 10: INFLATION ADJUSTED TAX REVENUES FLAT

TAX R

ELIEF FOR THOSE WHO NEED IT

Indiv

idual income tax cuts enacted by Governor Evers—including one of the largest tax cuts in state

history—reduced taxes for Wisconsin middle class taxpayers by at least 15 percent, exceeding the

Governor’s promise to reduce taxes for middle class Wisconsinites by at least 10 percent. The

Governor’s 2023-25 budget continues to build on those cuts with further tax reductions targeted at

middle and working-class Wisconsinites.

CHA

RT 11: MIDDLE CLASS TAX CUTS SINCE 2019

irst, the Governor recommends the creation of the Family and Individual Reinvestment (FAIR) credit

that would be a nonrefundable credit equal to 10 percent of the remaining tax liability after nearly all

other credits are applied. The full 10 percent would be available for single filers with Wisconsin

adjusted gross income below $100,000 and married-joint filers with Wisconsin adjusted gross income

below $150,000. The 10 percent credit rate would gradually phase out as incomes increase beyond

that point until being fully phased out for single filers with Wisconsin income above $120,000 and

married-joint filers with Wisconsin income above $175,000. Below the start of the phase-out

thresholds, the credit will have a $100 minimum for single and married-joint filers and a $50 minimum

for married-separate filers. The fiscal impact is an estimated decrease in tax revenue of

$418.7 million in fiscal year 2023-24 and $420.9 million in fiscal year 2024-25. Over 1.9 million

Wisconsin tax filers will see an average tax cut of over $200 annually under the FAIR credit.

econd, the Governor recommends adopting a nonrefundable credit for family caregivers that will

provide $96.7 million in tax relief in fiscal year 2023-24 and $98.3 million in fiscal year 2024-25. The

credit is equal to 50 percent of the qualifying expenses incurred by those providing care or support to

adult family members requiring assistance with one or more daily activities, limited to $500 in a tax

year. The credit will be available to married-joint filers with incomes up to $150,000, subject to a

phase-out after that point with the credit being unavailable for those with incomes above $170,000.

For single, married-separate, and head of household filers, the credit will be available for those with

incomes up to $75,000, subject to a phase-out after that point with the credit being unavailable to

those filers with incomes above $85,000. Qualifying expenses under the credit are those amounts

incurred during a taxable year related to modifications to a dwelling for the care or support of a

qualified family member, purchase or lease of assistance equipment, and acquisition of goods or

-20.00%

-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Under $5,000

5,000 to 10,000

10,000 to 15,000

15,000 to 20,000

20,000 to 25,000

25,000 to 30,000

30,000 to 40,000

40,000 to 50,000

50,000 to 60,000

60,000 to 70,000

70,000 to 80,000

80,000 to 90,000

90,000 to 100,000

100,000 to 125,000

125,000 to 150,000

150,000 to 200,000

200,000 to 250,000

250,000 to 300,000

300,000 to 500,000

500,000 to 1,000,000

1,000,000 and over

Percentage Change in Income Taxes Paid vs. Prior Law

Income Range

Combined Reductions in Tax Bills - 2019 Acts + 2021 Budget Cut

2019 Acts 9 & 10 2021-23 Budget

services or support to assist in caring for a qualified family member. Tens of thousands of

Wisconsinites incur high financial burdens in caring for members of their family who require

assistance with daily living activities. This credit represents a meaningful commitment by the State of

Wisconsin to aid these taxpayers and those they care for, providing an estimated 240,000 taxpayers

with an average tax cut of nearly $400.

Third, the Governor recommends greatly increasing Wisconsin’s supplement to the federal Earned

Income Tax Credit (EITC) for working families with one or two children. Targeted tax relief through

EITC has been shown to be effective in reducing child poverty, yet Wisconsin’s credit for those with

one or two children lags most other states and should be increased. Beginning with tax year 2023,

the Governor’s budget will increase the percentage of the federal credit that filers with one dependent

child may claim from 4 percent to 16 percent. For filers with two children, the rate will increase from

11 percent to 25 percent. These increases in the proven EITC program will encourage work while

providing needed relief to low- and moderate-income families with children. Under the Governor’s

budget, nearly 200,000 filers with children will receive $60.7 million in fiscal year 2023-24 and

$63.8 million in fiscal year 2024-25. Average tax relief for these taxpayers will be over $300 annually.

Fourt

h, the Governor also recommends enhancing the Homestead Credit to provide increased relief

to lower-income Wisconsinites to meet their property tax and rent burdens. The Governor’s budget

will increase the maximum eligible household income under the program to $35,000 in tax year 2023

to extend property tax and rent relief to a large segment of Wisconsinites who have lost that relief due

to inflationary pressures over the past two decades. The Governor’s budget will also restore indexing

for the credit beginning with tax year 2023, which is vital for those on fixed income streams such as

Social Security or disability payments. For those taxpayers, restoring indexing will prevent the credit

from losing value due to inflation. These taxpayers will see approximately $100 million in targeted

property tax relief over the biennium through this expansion of the Homestead Credit.

CHART 1

2: SENIORS HAVE BEEN PUSHED OUT OF THE HOMESTEAD TAX CREDIT BY

INFLATION

Becaus

e the Homestead Credit is currently limited to seniors, those with disabilities, and those with

earned income due to changes implemented in the 2017-19 biennial budget act, expanding the

Homestead Credit’s income eligibility provides tax relief exclusively to those on fixed incomes or low-

income working households, helping seniors and people with disabilities stay in their homes and

improving housing affordability for low-income working households. Inflationary adjustments in Social

Security benefits have greatly reduced the number of senior claimants of the Homestead Credit in

recent years. By refusing to index the Homestead Credit, the Legislature has been failing Wisconsin’s

senior citizens who are struggling to pay their property taxes while confronting other rising costs.

Fifth, the Governor recommends expanding the Veterans and Surviving Spouses Property Tax Credit

in two meaningful ways, by: (a) increasing the availability of the credit to those with a disability rating

in excess of 70 percent; and (b) expanding the credit to include renters. The expansion to include

renters matches the treatment of renters under the Homestead Credit and the School Property Tax

Credit. Renters pay property taxes that are passed through by their landlords and should receive tax

relief as a simple matter of tax equity. As with the current law provisions, this proposal would extend

the Veterans and Surviving Spouses Property Tax Credit for renters at the rate of 20 percent for

those with heat included in their rent and 25 percent for those without heat included in their rent.

These provisions will provide a total $26.2 million in relief in fiscal year 2023-24 and $27.3 million in

fiscal year 2024-25.

Six

th, the Governor recommends increasing the percentage match of the federal Child and

Dependent Care Tax Credit from 50 percent of the federal credit to 100 percent beginning with tax

year 2023 to help families with the rising costs of child care. This will provide over $27 million

annually in tax relief to over 100,000 Wisconsin taxpayers at an average benefit of over $260 per filer.

CREAT

ING A FAIRER TAX CODE

Even when tax revenues might appear to be ample, that is not a time to look at our tax expenditures

and conclude that no changes must be made. Prudent fiscal management requires routine evaluation

of the policies that do and do not work in achieving their aims, investing more in those that do and

adjusting those that do not. In doing so, we can raise funds from ineffective provisions to deploy those

resources into programs with higher return on investment for the people of Wisconsin. This is as true

in the tax code as it is in any other program area.

The Manufacturing & Agriculture Credit has failed to provide the benefits promised for manufacturing

at the time of its creation in 2013 while its costs to Wisconsin taxpayers have soared. When the credit

was first created in the 2011-13 biennial budget, the fully phased-in fiscal effect was projected to be

only $128.7 million by fiscal year 2016-17. The actual amount grew to $257 million by that year and is

now costing the state approximately $410 million a year according to the most recent estimates from

the Department of Revenue.

Meanwhile, the credit has failed to demonstrate any measurable success at increasing Wisconsin’s

share of national manufacturing employment. The chart below demonstrates that in fact the period

during which the credit has been in place has seen Wisconsin’s share of national manufacturing

employment stagnate after years of increases prior to its implementation.

CHART 13: MANUFACTURING AND AGRICULTURE CREDIT INEFFECTIVE AT

INCREASING MANUFACTURING EMPLOYMENT

Source: Bureau of Labor Statistics, Quarterly Census of Employment & Wages

If t

he purpose of the Manufacturing & Agriculture Credit was to increase Wisconsin’s share of national

manufacturing employment, it has failed in its goal. Furthermore, Wisconsin’s relative standing in

manufacturing wages has declined, with Wisconsin manufacturing workers only ranking 34th among

the 50 states for average annual wages and only paid 84.1 percent of the national average compared

to 92 percent of the national average two decades ago. The credit is ineffective at increasing

employment and at helping to increase wages among those employed in the manufacturing sector.

The result of this tax benefit has been to significantly reduce state tax revenues by providing massive

tax benefits to high-income earners. Moreover, because it is a nonrefundable credit, it cannot be

argued that the credit helps keep firms in business since it is only available to those earning a net

profit. Considering that the credit costs the state nearly 2 percent of its total general fund tax

revenues annually, it is time to reevaluate and limit this costly tax expenditure.

CHART 14: WISCONSIN MANUFACTURING WAGES RANKING

Sourc

e: Bureau of Labor Statistics, Quarterly Census of Employment & Wages

In tax

year 2021, a mere 7,560 taxpayers, approximately 0.3 percent of all individual income tax filers

with a net tax liability, claimed the manufacturing portion of the credit for a total of $402.4 million,

approximately $53,300 per claimant. Sixty-seven percent of the aggregate dollars claimed went to

taxpayers with adjusted gross incomes in excess of $1 million and more than half of those claims

were to taxpayers with adjusted gross incomes in excess of $5 million. Those approximately

170 claimants with adjusted gross income in excess of $5 million in 2021 claimed $149.7 million in

the manufacturing credit, or nearly $900,000 per claimant.

To put

these massive claims in context, the amounts claimed by this handful of taxpayers with

incomes greater than $1 million in adjusted gross income exceed the cost of the Homestead Credit,

the Wisconsin Earned Income Tax Credit, and the Veterans and Surviving Spouses Property Tax

Credit combined. Meanwhile, the benefit to Wisconsin has been minimal compared to its enormous

cost, rendering it one of the state’s most inefficient tax programs. Preparing our state for the future

and ensuring we can deliver tax relief now and into the future in both economically turbulent times

and times of economic prosperity depends on ensuring every taxpayer pays their fair share.

CHART 15: TAX CREDIT CONTEXT

Manufac

turing continues to be a vital part of Wisconsin’s economy. This credit, however, has

demonstrated no record of growing Wisconsin’s manufacturing employment or wages. Under the

Governor’s proposal, the agricultural portion of the credit will remain as it is under the current law.

However, because this massive tax expenditure has been generally ineffective at its stated purpose

of increasing Wisconsin manufacturing employment while also driving inequities in our income tax

structure, the Governor recommends limiting, not eliminating, the manufacturing portion of the credit

to only apply to the first $300,000 in qualified production activities income for each firm qualifying for

the credit. This will result in an increase of $348.7 million in fiscal year 2023-24 and $306.4 million in

fiscal year 2024-25 to state tax collections. This change will help pay for the Governor’s tax relief to

lower and middle-income Wisconsinites and support programs for small businesses. The Governor

remains committed to providing a healthy environment for manufacturers with a robust workforce,

improved transportation infrastructure, and targeted incentives for true growth and development as

opposed to a simple tax break on large profits.

Another

large tax break that has benefits skewing toward a relatively small share of the overall

taxpayer population is Wisconsin’s 30 percent exclusion for long-term capital gains realizations. This

tax expenditure provides a preferential rate for disproportionately high-income earners’ income

derived from capital asset sales, which tend to be corporate equity holdings. For very high-income

Wisconsin taxpayers subject to the highest tax bracket, instead of facing the ordinary 7.65 percent

marginal rate that applies to wage and salary income, investment gains qualifying for the capital gains

exclusion have an effective preferential rate of 5.355 percent. This is only slightly above the marginal

tax rate faced by most middle-class taxpayers.

To improve equity between different forms of income, the Governor recommends limiting the current

30 percent long-term capital gains exclusion to those taxpayers with incomes below $400,000 for

individuals and $533,000 for married-joint filers. This preserves the exclusion for all but the highest

income earners, while continuing to provide relief to ordinary retirees and small investors. Wealthier

investors would pay the same tax rate on their capital gains that they would on wages and salaries.

That is a fairer tax system for all Wisconsinites. The Governor’s proposal would also retain specific

capital gains incentives for investments in Wisconsin businesses as well as retain the current law

60 percent exclusion for capital gains derived from farm assets. The limits to the 30 percent long-term

capital gains exclusion will raise an estimated $185.2 million in fiscal year 2023-24 and $154.2 million

in fiscal year 2024-25. Limiting the exclusion helps to level the playing field while providing revenues

for other priorities.

Fina

lly, the Governor recommends conforming Wisconsin’s tax base with certain provisions of the

federal tax code. Notably, adopting federal tax changes would ensure that federal student loan debt

forgiveness received by Wisconsinites would not be subject to state taxes, mirroring its federal

treatment. The largest current divergences from federal law result from provisions of the 2017 Tax

Cuts & Jobs Act not yet adopted for Wisconsin purposes. Numerous states that automatically

conform to federal law have realized increased tax collections resulting from a larger tax base that

they have been able to deploy for other purposes. The Governor’s proposal would adopt most of the

major remaining provisions of the Tax Cuts & Jobs Act, except for accelerated depreciation provisions

and the amortization of research expenses. Together, these provisions will raise $187.6 million in

fiscal year 2023-24 and $200.6 million in fiscal year 2024-25. As part of federal conformity efforts, the

Governor also recommends repealing the net operating loss carryback provision under current law

because the equivalent provision was repealed under the Tax Cuts & Jobs Act. The repeal of net

operating loss carrybacks will raise $2.9 million in fiscal year 2023-24 and $1.5 million in fiscal year

2024-25.

CONTINUED ECONOMIC RECOVERY AND EXPANSION

The Gov

ernor’s budget builds on the strong economic recovery from the COVID-19 global pandemic

by making additional investments in effective economic development strategies designed to grow our

workforce, aid small businesses and spur entrepreneurship in our state.

First, the Governor’s budget provides additional resources to the Wisconsin Economic Development

Corporation aimed at continuing the economic recovery in all parts of Wisconsin. On an ongoing

basis, the Governor’s budget provides $10 million GPR annually beginning in fiscal year 2023-24 as a

permanent increase to the corporation’s block grant. The Wisconsin Economic Development

Corporation has faced increasing costs, including in wages and salaries for its employees. To remain

effective in providing economic development support, its budget must be increased to reflect these

cost pressures. Additionally, the Governor’s budget provides the Wisconsin Economic Development

Corporation $40 million GPR on a one-time basis in fiscal year 2023-24 to further spur economic

development efforts as Wisconsin transitions from pandemic recovery to a mature economic

expansion that brings with it a new set of challenges.

Beyon

d providing general support to the Wisconsin Economic Development Corporation, the

Governor’s budget also continues the highly successful Main Street Bounceback program. Initially

funded with federal aid received under the American Rescue Plan Act of 2021, the Governor’s budget

provides $25 million GPR annually to continue the program. The Main Street Bounceback program

provides one-time grants to small businesses looking to initially occupy or further expand into vacant

commercial space. The program is administered through the Wisconsin Economic Development

Corporation’s nine regional economic development partners, leveraging their expertise and

experience in their regions to best deploy grants to businesses needing assistance.

The Gov

ernor also continues his specific investments to support Wisconsin’s tourism industry with an

investment of $37 million over the biennium to support the Department of Tourism’s marketing

activities. The Governor also proposes bolstering the state’s ability to recruit large-scale events to

Wisconsin by creating and funding an opportunity and attraction fund with $30 million GPR over the

biennium. This substantial investment to help showcase everything Wisconsin has to offer will reap

significant benefits for local and regional businesses and workers, Main Streets, and the statewide

economy.

In addi

tion, the Governor recommends proposals to further develop Wisconsin’s start-up business

ecosystem. The largest of these proposals creates a $75 million venture capital fund of funds under

the direction of the Wisconsin Economic Development Corporation. This fund of funds investment

program will invest in venture capital funds that commit to invest the state’s funds in emerging

Wisconsin companies alongside other private capital to leverage other sources of financing.

Furthermore, the fund of funds proposal will require that 20 percent of all investments go to

underserved communities, including rural areas that do not traditionally receive venture capital

financing, and to minority and women-owned businesses. By locating this fund of funds program at

the Wisconsin Economic Development Corporation, this venture capital initiative will be able to utilize

the Wisconsin Economic Development Corporation ‘s extensive relationships with businesses across

Wisconsin to ensure that promising new businesses can be matched with necessary investment

capital.

To fur

ther enhance the state’s venture capital ecosystem, the Governor also recommends removing

the requirement that the current Badger Fund of Funds program, overseen by the Department of

Administration, repay its initial investment to the State. The Badger Fund of Funds has developed

important relationships with venture capital funds, emerging businesses, and other entities. Allowing

the fund to reinvest will enable the fund to continue its important work in improving the venture capital

ecosystem in Wisconsin.

Improving Wisconsin’s entrepreneurial environment is vital to the state’s economic success,

especially in high-growth industries in medical and informational technologies. Robust venture capital

investment is the necessary condition for the development of such industries and Wisconsin has

routinely lagged in attracting such investment. Wisconsin, like most states, saw a strong increase in

venture capital fund-raising in 2021, but it still lagged well-behind Wisconsin’s share of the national

population, employment or any number of other economic measures. It is time to change this, and the

venture capital provisions included in this budget will help do just that.

CHART 1

6: WISCONSIN VENTURE CAPITAL FUND-RAISING UP, STILL LOW SHARE OF

NATIONAL TOTAL

Sourc

e: National Venture Capital Association, “NVCA Yearbook”

The Governor continues his efforts to grow large and small business in Wisconsin. Including

recommending changes to business tax incentives, including those administered by the Wisconsin

Economic Development Corporation.

Fir

st, to spur additional investment in this state, the Governor recommends increasing the refundable

share of the research credit from 15 percent under current law to 50 percent beginning in tax year

2024. This increase will provide an incentive for critical research and development spending by

Wisconsin businesses that will improve their competitiveness and help develop new products.

Refundability of the research credit is important because many of the most innovative start-up

companies do not have tax liability to offset with a nonrefundable credit. Providing enhanced

refundability therefore gives new firms a meaningful incentive to conduct research in Wisconsin. This

change will provide $16.1 million in tax relief to businesses in fiscal year 2023-24 and $64.4 million

annually beginning in fiscal year 2024-25.

Secon

d, the Governor recommends creating a new earnings category under the Business

Development Tax Credit for renewable energy and energy efficiency projects for up to 25 percent of

the costs of real or personal property investments undertaken by award recipients. This will help

incentivize the generation of more renewable energy on-site at businesses and reduce energy

consumption, improving Wisconsin’s competitive standing and addressing climate change.

Thir

d, the Governor recommends incentivizing the creation of higher wage jobs by increasing the

wage thresholds for businesses under the Business Development Tax Credit and the Enterprise Zone

Jobs Tax Credit. Both the lower and upper bounds of maximum eligible wages have not been

adjusted since the creation of either program, which in the case of the Enterprise Zone Jobs Tax

Credit dates back to 2007. To ensure that the state is only incentivizing the creation and retention of

jobs that pay living wages, the Governor recommends increasing the minimum qualifying level for

wages under the Enterprise Zone Jobs Tax Credit from $30,000 to $42,390 for tier II counties and

municipalities and from $22,620 to $32,000 for tier I counties and municipalities. The maximum wage

level eligible for credit earnings will be raised from $100,000 to $141,300. These changes will also

apply to the Business Development Tax Credit. These higher thresholds will apply to awards first

certified in 2024 and the thresholds will be indexed annually thereafter to avoid having award

thresholds fall behind cost-of-living increases in the future. These reforms to our business tax

incentives will ensure that Wisconsin is only incentivizing the creation of jobs that pay at least a living

wage now and into the future as the cost-of-living increases.

C. SUPPORTING HEALTHIER WISCONSINITES

HEALTH SERVICES

The Gov

ernor’s budget again moves us toward a healthier Wisconsin. The budget includes proposals

that would increase access to affordable healthcare coverage, improve the quality of healthcare

services in the state, and expand the scope of benefits available through Medicaid. The key proposal

in the Governor’s health package is, once again, Medicaid expansion. This would expand Medicaid

eligibility for parents and adults from 100 percent of the federal poverty line ($27,750 annually in 2022

for a family of four) to 138 percent of the federal poverty line ($38,300 annually in 2022 for a family of

four). This expansion under the federal Patient Protection and Affordable Care Act would result in

89,700 low-income individuals becoming eligible for Medicaid, of which approximately 30,300 are

uninsured. In addition to providing affordable healthcare coverage to these individuals, the state

would realize a savings of over $1.6 billion GPR over the biennium and draw down an additional

$2.2 billion FED over the biennium. The GPR savings is driven by an enhanced federal matching rate

the state would receive for childless adults covered by Medicaid and an additional incentive created

by the federal American Rescue Plan Act that would increase the federal matching rate for the entire

Medicaid program by five percentage-points for two years when the state implements Medicaid

expansion.

As of

January 2023, Wisconsin is one of only 11 states that have not chosen to expand their Medicaid

program, which is why this budget seeks to once again accept the federal Affordable Care Act’s

provision for Medicaid expansion, ensuring affordable coverage to Wisconsinites with income up to

138 percent of the federal poverty level.

CHART 17: STATUS OF MEDICAID EXPANSION ACROSS THE U.S.

Sourc

e: Kaiser Family Foundation

The CO

VID-19 pandemic reshaped the way state Medicaid programs provided coverage to

individuals. The federal Families First Coronavirus Response Act provided a 6.2 percentage-point

increase to the state’s Federal Medical Assistance Percentage (FMAP), or the percentage at which

the federal government subsidizes states’ Medicaid programs. To receive the increased FMAP rate,

states were required to adopt a continuous coverage policy, meaning that during the federally

declared public health emergency related to the COVID-19 pandemic, states could not disenroll

individuals from their Medicaid programs. This policy resulted in a significant increase in Medicaid

enrollment nationwide. Recently enacted federal legislation decoupled the continuous coverage policy

from the federal public health emergency and provided a phased down FMAP rate for 2023 as states

begin the process of redetermining Medicaid eligibility for all members. The Governor’s budget

recognizes the unique position the Medicaid program is in and fully funds the projected cost of the

program over the biennium. In addition, the Governor is providing appropriate ongoing resources for

the Medicaid program by restoring Medicaid funding that was transferred from the General Fund to

the Medical Assistance Trust Fund on a one-time basis in 2021 Wisconsin Act 58.

The si

gnificant savings from Medicaid expansion allows the Governor’s budget to expand the benefits

available to members through the Medicaid program to better meet their needs. The Governor’s

budget provides $105 million over the biennium to include the following benefits:

• A Medi

caid community health benefit for nonmedical services to reduce and prevent health

disparities that result from the economic and social determinants of health;

• Psy

chosocial rehabilitation services provided by noncounty providers;

• Cover

age of services provided by community health workers;

• Cover

age of room and board costs for residential substance use disorder treatment;

• Cover

age of telehealth origination costs for schools;

• Acupu

ncture services;

• Doula s

ervices;

• Expanded coverage of certified peer specialists; and

• Cover

age of continuous glucose monitoring devices and insulin pumps through the pharmacy

benefit.

The Governor’s recommendation allows the Medicaid program to reinvest savings to increase

payments to providers and hospitals. The Governor’s budget provides $626 million over the biennium

to increase payments to hospitals though a rate increase for hospital services, increased acute care

hospital access payments, increased critical access hospital access payments, and increased

pediatric supplemental payments. In addition, the Governor’s budget provides $250 million to

increase Medicaid reimbursement rates for primary care services, emergency physician services,

autism treatment services, outpatient mental health and substance use disorder services, and child-

adolescent day treatment.

he Governor’s recommendation proposes to modify Medicaid eligibility by providing $34 million to

extend Medicaid postpartum coverage to one year. This policy change will align Wisconsin with

35 other states and provide extended coverage to over 6,000 mothers. The Governor’s budget seeks

to join several other states that have implemented an easy enrollment program. This initiative would

add a check box option to the state’s individual income tax return that a filer could check if they are

interested in having the state determine their eligibility for Medicaid or subsidized coverage on the

health insurance marketplace.

The G

overnor’s budget would make two major changes to how certain aspects of the Medicaid

program are financed. Under current law, the Medicaid Community Support Program, a county

administered program for adults living with serious and persistent mental illnesses, is funded with

county funding and federal funding. The Governor’s recommendation would provide $40 million GPR

to shift the nonfederal share of program costs from county funding to state funding. The second major

change is to Medicaid school-based services. Under current law, school districts pay the full upfront

cost of Medicaid school-based services and receive federal funding through a certified public

expenditure process. Currently, school districts retain 60 percent of the federal funding received for

benefits and 90 percent of the federal funding received for administrative costs and the remaining

funding is deposited in the General Fund. The Governor recommends allowing school districts to

retain 100 percent of federal funding received for Medicaid school-based services, resulting in school

districts receiving an additional $112 million of federal funding over the biennium.

The Children’s Long-Term Support (CLTS) waiver program is a home and community-based services

waiver program that provides Medicaid funding for kids who have substantial limitations in their daily

activities and need support to remain in their home or community. This budget, similar to the

Governor’s previous budget recommendations, assures families that all eligible kids who apply

receive the long-term care services they need. Eligible kids include those with developmental

disabilities, severe emotional disturbances, and physical disabilities.

The Governor also recommends providing $26 million all funds over the biennium to license dental

therapists, providing grants for community dental health coordinators, creating a Medicaid Tribal

reimbursement support team, expanding Medicaid graduate medical education grants, and creating

an incentive for nonhospital Medicaid providers that participate in a health information exchange.

mproving Public Health Response and Resources

ublic health activities lay the groundwork for healthy communities. They protect us from diseases

and injury we cannot prevent alone and help us change behaviors harmful to our health. Public health

works to prevent epidemics; protect the environment, workplaces, housing, food, and water; promote

healthy behavior; monitor the health of the population; mobilize community for action; respond to

disasters; assure that medical services are high quality and necessary; train specialists in

investigating and preventing diseases; and develop policies that promote health. Unfortunately,

Wisconsin continues to lag in per-capita public health spending, as shown in Chart 18. The state is

currently tied for last with Nevada, investing only $72 per person in public health initiatives.

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CHART 18: 2019-20 PER-CAPITA PUBLIC HEALTH FUNDING BY STATE

Source: America’s Health Rankings

Compar

ed to the rest of the nation, Wisconsin has been significantly underfunding its public health

efforts for years. Since at least 2015, Wisconsin’s per-capita funding has ranked last or in the bottom

five when compared to other states. Recognizing this fact and the importance of a strong public

health system to protect and promote the health of all Wisconsinites, the Governor’s budget makes

Wisconsin’s largest GPR public health investment to date. The Governor recommends a $219 million

GPR investment in public health activities including, but not limited to, the following items:

• Providing $150 million GPR in fiscal year 2023-24 in Emergency Medical Services Flex

Grants to support emergency medical services providers;

• Prov

iding $1,346,300 GPR in fiscal year 2023-24 and $15,849,000 GPR in fiscal year

2024-25 to create a 60‑day stockpile of personal protective equipment;

• Prov

iding $4,172,000 GPR in fiscal year 2024-25 for an electrocardiogram screening pilot

program for youths participating in athletics in Milwaukee and Waukesha counties;

• Prov

iding $500,000 GPR annually to convert funding for the Resilient Wisconsin program

from FED to GPR;

• Prov

iding $100,000 GPR annually for PFAS awareness and outreach;

• Prov

iding $250,000 GPR annually for Amyotrophic Lateral Sclerosis (ALS) grants;

• Prov

iding $1 million GPR annually for the Mike Johnson Life Care and Early Intervention

Services grants;

• Prov

iding $1.5 million GPR annually for spinal cord injury research grants and symposia;

• Prov

iding $720,000 GPR annually to purchase epinephrine for public ambulance providers;

and

• Prov

iding $500,000 GPR annually to free and charitable clinics.

Other

initiatives and investments include providing funding to translate the Department of Health

Services website into multiple languages, providing state funding to support the Newborn Screening

Program, providing funding for healthy aging programs, providing additional support for the Office for

the Blind and Visually Impaired, increasing funding for the Telecommunications Assistance Program

and interpretation services, increasing grants to independent living centers, providing a child wellness

grant, and increasing funding for Alzheimer’s disease grants and respite care grants.

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Emergency Medical Services

The Emer

gency Medical Services industry is currently facing numerous challenges from staffing to

financial sustainability. As mentioned above, the Governor’s budget makes an investment of

$150 million GPR to continue the Emergency Medical Services Flex Grants in fiscal year 2023-24.

Further, the Governor’s shared revenue proposal infuses local governments with significant new

resources, including a $250 million appropriation that can be used to support local public safety

services, including emergency medical services. In addition to these cornerstone investments in

Emergency Medical Services, the Governor’s budget also recommends:

• Refor

ming how emergency medical responders are licensed by certifying individuals as

emergency medical responders if they complete a certified training program or pass the

National Registry of Emergency Medical Technicians examination for emergency medical

responders;

• Prov

iding funding to implement the public ambulance provider certified public expenditure

provisions of 2021 Wisconsin Act 228;

• Creat

ing statutory language to implement the private ambulance provider assessment

provisions of 2021 Wisconsin Act 228;

• Establishing statutory language that removes the barriers first responders with post-traumatic

stress disorder face when seeking worker’s compensation;

• Prov

iding 1.0 FTE GPR position to staff an ambulance inspection program; and

• Prov

iding 1.0 FTE GPR position to expand the Office of Preparedness and Emergency

Health Care.

Lead H

azards Initiatives

Lead damag

es the brain and other bodily systems, and its effects can last a lifetime. While lead can

hurt anyone, the health effects of lead exposure are particularly damaging for kids under six years of

age. Lead poisoning among kids is typically caused by swallowing or breathing in dust from lead-

based paint in homes that were built before 1978. In 2020, over 2,100 kids under age six had a blood

lead level greater than 5 micrograms per deciliter. In addition to actions to address lead service lines

addressed elsewhere in this document, the Governor’s budget makes key statutory changes and

critical investments to continue to lower the incidence of childhood lead poisoning in Wisconsin,

including:

• Decr

easing the definition of lead poisoned from 5 micrograms per deciliter to 3.5 micrograms

per deciliter to align with recommendations from the U.S. Centers for Disease Control and

Prevention;

• Requi

ring a public health investigation when a child has a blood lead level over

3.5 micrograms per deciliter and providing funding to the Department of Health Services and

local health departments to carry out these investigations;

• Expan

ding early intervention services provided through the Birth to 3 Program to kids with a

blood lead level over 3.5 micrograms per deciliter;

• Incr

easing Medicaid reimbursement rates for local health department lead investigations; and

• Prov

iding $100 million GPR in fiscal year 2023-24 to support a revised and more robust

Workforce Housing Rehabilitation Loan Program at the Wisconsin Housing and Economic

Development Authority. The revised program would provide low-interest and forgivable loans

to low- to moderate-income households to renovate or repair their current home, including

lead remediation.

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Maternal and Infant Health

Famil

ies in Wisconsin have been perpetually impacted by severe racial and ethnic disparities, which

has led to adverse health and economic outcomes in our state. Wisconsin must strengthen efforts to

assure the best outcomes for all mothers and babies in the state, that is why in addition to initiatives

mentioned above, the Governor’s budget invests $5.6 million GPR to:

• Awar

d grants for maternal and infant mortality prevention;

• Expan

d fetal and infant mortality review teams;

• Fund a gr

ief and bereavement resource for families who have lost a fetus or infant; and

• Prov

ide 2.0 FTE GPR positions to support maternal mortality review.

The Governor’s budget also includes over $5 million GPR to expand home visiting services to

approximately 24 additional counties and Tribes.

Tob

acco and Vapor Product Reform

Tobacc

o is Wisconsin’s leading cause of preventable death and costs the state more than $4.6 billion

annually in healthcare and lost productivity expenses. Many populations use tobacco at

disproportionately higher rates than the general population (16 percent), such as those impacted by

depression (21 percent), American Indians (34 percent), and Medicaid recipients (26 percent).

In 2019,

20.6 percent of high schoolers in Wisconsin regularly used vapor products and 45.5 percent

had tried a vapor product. Because vapor products and related products are relatively new to the

market, current statutory language does not encompass these devices, creating gaps in state law.

While the long-term effects of vapor products are not yet known, the rapid uptake of vapor products

by youth is widely seen as an emerging public health concern.

The Gov

ernor’s budget addresses existing gaps in state statute by adopting the following common-

sense reforms related to vapor product use and tobacco use:

• Incr

easing the minimum age to purchase cigarettes, tobacco products, nicotine products, and

vapor products from age 18 to age 21, bringing Wisconsin in alignment with federal law;

• Prohibiting the use of a vapor product in indoor locations, similar to how smoking is prohibited

in most indoor locations;

• Proh

ibiting the use of a vapor product on public, private, and charter school property; and

• Provide funding to support the American Indian Quitline.

Imp

rovements to Healthy Food Availability

It i

s well established that eating sufficient fresh fruits and vegetables is vital for a healthy dietary

pattern associated with a reduced risk of cardiovascular disease and some cancers. It is also well

established that Americans fall short of the daily recommendations for fruits and vegetables, and

lower income groups fare worse than those with higher incomes. Affordable foods that also support

healthy eating habits can oftentimes be inaccessible to those with lower incomes. To help expand the

availability of healthy food options for those enrolled in the FoodShare program, the Governor

recommends creating a pilot program that significantly reduces the cost of certain food items,

allowing FoodShare benefits to be stretched further. Additionally, the Governor recommends

expanding locations that accept FoodShare benefits by providing the necessary equipment to local

farmer’s markets and farmers that directly market their produce, expanding healthy and local food

options for those enrolled in FoodShare. Further, as detailed in elsewhere in this document, the

Governor proposes continuing the successful Food Security Initiative at the Department of

Agriculture, Trade, and Consumer Protection.

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STRENGTHENING OUR BEHAVIORAL HEALTH SYSTEMS

Acc

ording to the Kaiser Family Foundation, half of adults say they have experienced a severe mental

health crisis in their family, and an overwhelming majority of the public understand there is a mental

health crisis in the U.S. today. We have endured a lot these past few years. From the continued

stress on families and anguish of losing loved ones to the ongoing opioid epidemic and COVID-19

pandemic, to the personal financial stress and economic uncertainty that many of us encounter, to the

difficult challenges that kids and youths face in an ever-complex world, Wisconsinites need help

perhaps now more than ever. Across the enterprise, this budget makes one of the largest budget

investments in mental health and substance use disorder treatment in at least 40 years.

One of t

he most important aspects of mental health services is having access to care when you need

it the most. Services a county or two over cannot be helpful when someone is in the midst of a crisis

or feels one coming on. That is why this budget makes significant investments in expanding the

availability of behavioral health services so that Wisconsinites can receive care closer to home.

Imp

roving Crisis Response

When crisis services are not available close to home, there is a cascading effect that not only

negatively affects the quality of care and comfort of the individual in crisis but also costs counties and

law enforcement time and money. Oftentimes, individuals with short-term crisis needs must be

transported across the state to Winnebago Mental Health Institute, the state’s provider of last resort,

resulting in more restrictive, intensive, and costly treatments that could have better been served at a

lower-intensity service if they were available. Such trips also take up hours of law enforcement time

on top of the additional time spent waiting in the emergency room for medical clearance to be

conducted before transport.

This

budget offers a comprehensive solution to improving crisis care by implementing a core element

of the Crisis Now model of best practices for mental health crisis care. The Governor recommends

establishing up to two crisis urgent care and observation centers to serve as crisis services hubs that

would offer a range of behavioral health services to everyone from walk-in appointments to first

responder emergency detention drop-off cases. These centers would serve as regional crisis

receiving and stabilization facilities, offer seamless transitions between levels of services offered at

the centers, arrange for the transfer to more appropriate treatment options as needed, coordinate the

connection to ongoing care, and promote the effective sharing of information between providers to

improve service delivery and patient outcomes.

In addition to strengthening the overall behavioral health system in the state, these centers would

alleviate a significant portion of time that law enforcement and other first responders dedicate to

emergency detention cases by offering a dedicated first responder drop-off location, accepting

custody of emergency detention cases, and not requiring medical clearances be completed before

drop-off. This “no-wrong-door” design would improve the immediate treatment of individuals in crisis,

give them a better chance at avoiding the need for more intensive treatment, and avoid the

often‑traumatic experience of being transported facility-to-facility during placement over long

distances.

Investing in Mental Health

The st

ate has recently developed three crisis stabilization facilities specifically designed for the needs

of youths experiencing a crisis. This budget provides $1 million in stable, ongoing state support to

ensure these facilities continue to serve youths closer to home, support the needs of the communities

they are in, and reduce the need for more intensive treatments.

For those kids and youths who have even more complex behavioral health needs, options have been

limited in the state for some time, requiring the difficult decision to seek long-term placement outside

of the state where their needs can be met. This Governor’s budget provides $1.8 million in fiscal year

2024-25 to lay the groundwork to offer psychiatric residential treatment facilities here in the state to

address this gap in care by offering intensive, focused mental health treatment to successfully return

the kids and youths home where they belong.

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The Office of Children’s Mental Health plays an important role in coordinating state and local efforts

on kids and youth mental health issues, organizing listening sessions and other means of studying

what affects their mental health, and recommending initiatives in this space. This budget further

invests in the office by providing an additional 1.0 FTE GPR position to expand and improve their

mission.

This budget provides $260,000 GPR in annual, ongoing funding to support the eight peer recovery

centers in the state that offer advice, skills training, and a place to connect with others in the local

community who have lived experiences with behavioral health struggles. This funding will also

support two new peer recovery centers in areas not currently served by any of the existing centers to

expand access to these important services.

Those who are deaf, hard of hearing, or deaf-blind face unique challenges when it comes to

accessing behavioral health services. The National Association of the Deaf emphasizes the need for

mental health programs to offer culturally and linguistically affirmative services provided directly

between the individual being served and the service provider to improve diagnostic accuracy and

treatment outcomes. That is why the Governor recommends providing $1.9 million GPR in fiscal year

2024-25 to establish a behavioral health treatment program directly tailored for those who are deaf,

hard of hearing, or deaf-blind, where individuals will receive treatment directly from a behavioral

health provider. This program would also serve as a training ground for future providers to better

serve the deaf, hard of hearing, and deaf-blind communities.

Improv

ing the availability of care is only one part of the solution. Another crucial barrier to overcome

before receiving the care Wisconsinites deserve is oftentimes affordability. In emergency situations,

there is a high likelihood that individuals do not have the ability to choose what type of care they

receive or where they receive it. Even if fully insured, receiving care in an out-of-network facility has

often resulted in astronomical, unreasonable medical bills. This lack of cost transparency has

individuals less willing to utilize healthcare services that they may desperately need. This budget not

only would codify recent federal actions to curb surprise billing for emergency services and reduce

medical costs; it would further expand upon them to protect against receiving unreasonably high

medical bills for certain behavioral health services received during a crisis.

Addi

tionally, the Governor’s budget provides $4 million GPR over the biennium to convert the highly

successful Child Psychiatry Consultation Program into a broader mental health consultation program

that can provide perinatal, child, adult, geriatric, pain, veteran, and general mental health consultation

services.

The Governor also recommends directing the Department of Health Services to distribute excise tax

revenue generated from the legalization of recreational and medicinal marijuana to the counties to

support their behavioral health services, alleviating revenue pressures that counties have been

experiencing in recent years.

Mental

health treatment can be particularly hard to find in rural areas. The Governor’s budget

provides $100,000 GPR annually to continue the popular farmer mental health program at the

Department of Agriculture, Trade and Consumer Protection. The program provides vouchers for

mental health services that can be used either in person or via a telehealth appointment.

Sui

cide Prevention

Between 2010 and 2020, nearly half a million lives (480,622) were lost to suicide nationally, according

to the Kaiser Family Foundation. In July 2022, the federally mandated 988 Suicide & Crisis Lifeline

became available to all landline and cell phone users, linking people to a suicide prevention crisis

center where callers are connected to individuals trained in behavioral health response. This budget

provides $898,700 GPR in fiscal year 2023-24 and $2,105,700 GPR in fiscal year 2024-25 to support

the 988 suicide and crisis call centers to better meet the needs of those calling the Lifeline for help

and guidance, and to support the increase in call volume the Lifeline has experienced since its

launch.

Addi

tionally, this budget provides $566,800 GPR in fiscal year 2023-24, $587,300 GPR in fiscal year

2024-25, and 1.0 FTE GPR position to create a suicide prevention program within the Department of

105

Health Services to coordinate suicide prevention efforts across the state. The program will also

develop and provide educational materials and public awareness campaigns on suicide prevention.

The program will further provide grants specific to the prevention of suicide by firearm use and

support staff trainings at firearm retailers and ranges on how to recognize at-risk individuals.

Expan

ding Substance Use Disorder Services

Subst

ance use and its adverse effects continue to impact our communities on a deeply personal

level, especially due to the opioid epidemic. The overprescribing of opioids and resulting dependency,

is just one example of how addiction can affect any one of us, making equity of access to affordable

and effective treatment options imperative. The use of stimulants has also posed a threat to sections

of our state, especially the northern and northwestern areas. Deaths involving the use of stimulants

have been on a continued rise in the state for the past ten years. In particular, methamphetamine and

cocaine have both seen rises in use and overdose deaths, being involved in 52 percent of drug

overdose deaths in 2021. Notably, multidrug use, combining a stimulant with an opiate, has played a

role in many of those overdoses.

CHART 1

9: WISCONSIN DEATHS INVOLVING STIMULANTS

Sourc

e: Department of Health Services

The tr

eatment of stimulants is more complex than available treatments for opioids, requiring

additional training and resources be available to providers in order to offer an effective, long-lasting

treatment option. The Governor’s budget proposes investing $1.6 million annually to address an

immediate need for increased stimulant treatment access in counties of high need. Preventing

stimulant use at the start, however, is also an imperative investment and would save many from the

struggles that result from addiction. That’s why this budget also invests in evidence-based stimulant

use prevention training programs.

Addi

tionally, the Governor’s budget seeks to strengthen our behavioral health systems by:

• Prov

iding ongoing funding to support the addiction treatment platform which locates,

compares, and offers reviews of available substance use disorder treatment programs in the

state to make the process of finding a treatment program that is close to home and meets the

unique needs of the individual easier.

• Suppor

ting the development of two integrated behavioral health stabilization, detoxification,

and intoxication monitoring services facilities by expanding Medicaid benefits to include these

new facilities.

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• Requiring services provided by substance use disorder counselors be covered by insurance

plans to ensure that individuals have affordable access to services.

INVESTING IN LONG-TERM CARE

The American Rescue Plan Act of 2021 provided a temporary 10 percentage point increase to the

Federal Medical Assistance Percentage (FMAP) for certain long-term care Medicaid expenditures for

Home- and Community-Based Services (HCBS). In claiming the additional federal revenue, the state

was required to reinvest the savings accrued from the 10 percent FMAP on activities that enhance,

expand, or strengthen HCBS under the Medicaid program, approved through a spending plan

submitted to Centers for Medicare and Medicaid Services.

The Governor is recommending providing $281 million all funds over the biennium in ongoing funding

for these initiatives, including:

• A 5 percent rate increase to HCBS;

• Development of a minimum fee schedule for HCBS;

• Sustaining the Wisconsin Personal Caregiver Workforce Careers Program to continue

enrolling an additional 5,000 caregivers into the professional certificate program;

• Ongoing funding for the WisCaregiver Career IT platform to remain up to date with available

resources for caregivers and maintain the technical quality of the website;

• Grants to the 11 federally recognized Tribal Nations to make improvements to Tribal

community facilities and Tribal citizen housing;

• Ongoing funding of the Tribal aging and disability resources specialists to serve as liaisons

between the Tribes and the aging and disability resource centers;

• Building a centralized aging and disability resource center website and database that is

accessible to Wisconsinites statewide, providing access to information about long-term care

supports and services from the comfort of their home while also providing aging and disability

resource centers with a database that centers the individual rather than the facility;

• Continued licensure and maintenance of a system to coordinate certification status work

between the department and managed care organizations; and

• Licensure and maintenance of a system devised as a technical solution to allow streamlined

data entry, review, and report generation to comply with a federal rule requiring states to

define the qualities of settings eligible for Medicaid home and community based services.

Additionally, the Governor is recommending providing funding to expand the Alzheimer’s Family and

Caregiver Support Program by increasing the income eligibility threshold from $48,000 annually to

$60,000 annually, in addition to increasing expenditure authority for the existing Alzheimer’s disease

grant. The Governor also recommends providing increased funding to Aging and Disability Resource

Centers to increase base allocations, as well as investing $13.6 million GPR into adult protective

services, which protects elderly and vulnerable adults who are at risk of abuse and exploitation.

To further invest in the long-term care workforce who provide care to Wisconsin’s most vulnerable

residents, the Governor recommends providing $88.8 million all funds over the biennium to increase

the rates paid to personal care workers and an additional $88.8 million all funds over the biennium to

increase the direct care and services portion of the capitation rates to support the direct caregiver

workforce in Family Care. The Governor also recommends providing additional funding to aging and

disability resource centers to expand caregiver support services to every county in the state. The

Governor further recommends providing funding to support a pilot project in Dane County focused on

addressing the mental health crisis among healthcare workers and recruiting and retaining a

sustainable workforce.

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The Governor’s budget also invests $15 million GPR into a Complex Patient Pilot which aims at

addressing difficulties and delays experienced in placing individuals in post-acute care settings for

medically challenging individuals. The ongoing staffing issues faced by long-term care providers have

led to costly delays in discharge from hospital settings and this pilot seeks to find innovative

approaches to more timely placements. With the state’s population rapidly aging, investments like this

are more critical than ever to ensure Wisconsinites are cared for in the most appropriate setting for

their needs.

To ass

ist individuals with disabilities in saving and investing for current and future needs, the

Governor proposes Wisconsin adopt a qualified Achieving a Better Life (ABLE) Savings Program.

The program offers tax-favored accounts, which are similar to 529 college savings accounts, to

Wisconsinites with disabilities. This enables people with disabilities to save money for housing,

education, transportation, and other qualifying expenses without having to worry about disqualifying

themselves from certain needs-based federal benefits, such as Medicaid and Supplemental Security

Income. This proposal empowers Wisconsinites to save and invest in their future needs.

AFFO

RDABILITY OF HEALTH INSURANCE AND PRESCRIPTION DRUGS

Governor Evers believes that no one should have to choose between paying for their life-saving

medications or paying their bills and putting food on the table. Even with insurance, some people find

a better deal by foregoing insurance coverage and using coupons, discount websites, or applications

in order to afford medications, and they are often then penalized by their insurance companies who

refuse to count those costs toward deductibles or other out-of-pocket maximums. Because of “behind

the curtain” negotiations by drug manufacturers, wholesalers, pharmacies, benefits managers, and

insurance companies, drug costs vary from insurer to insurer and sometimes even month to month.

Just like the Governor’s previous two budgets, this budget stays dedicated to reducing prescription

drug costs and improving the access to and quality of insurance coverage by ensuring a fair

marketplace for consumers, putting into place common-sense reforms that put people above profit.

Cutti

ng Costs for Prescription Drugs

Prescription drug manufacturers and the numerous other entities that make up the prescription drug

supply chain continue to exercise advantageous profiteering in the wake of market failures such as a

lack of competition and pricing transparency. This budget continues to improve transparency in a

purposefully opaque industry in order to reduce market failures and benefit consumers.

In August 2019, Governor Evers signed Executive Order #39 creating a task force on reducing

prescription drug prices. This budget takes many of the recommendations of that task force and

builds upon them to help ensure affordable drug coverage for all Wisconsinites.

For t

housands of Wisconsinites, insulin is a life-saving necessity that must always be on hand. This

fact often leaves families with no choice but to pay the unjustifiably inflated prices that the four

manufacturers of insulin set. Over the last 20 years, the prices of the most widely used insulin

varieties have risen over 1,400 percent. To help alleviate the effects of this blatant price gouging, the

Governor recommends capping copayments for a month’s supply of insulin at $35. The Governor

also recommends establishing an Insulin Safety Net Program to ensure those with an urgent need for

insulin as well as those with lower incomes and limited to no insurance coverage have access to

affordable, life-saving insulin. To further reduce costs for diabetes medications in general, the Office

of the Commissioner of Insurance is recommended to develop an innovative pilot program aimed at

creating a value-based formulary to focus on what works and reduce spending waste.

The Gov

ernor also recommends requiring pharmacy benefit management brokers and consultants,

pharmaceutical sales representatives, and pharmacy services administration organizations be

licensed to operate in the state to ensure fair business practices are adhered to along the entire

prescription drug supply chain. Pharmacy benefit managers would also owe a fiduciary duty to

insurers and other payers they contract with to ensure the benefit plan’s best interests are taken into

consideration and to reduce wasteful spending within the prescription drug industry. The new Office

of Prescription Drug Affordability will oversee and regulate those entities, serve as a watchdog of the

industry as a whole, and publish reports and documents publicly disclosing price justifications for

prescription drugs and emerging trends in prescription drug prices.

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Prescription drug prices and spending are consistently much higher in the U.S. than in other high-

income countries. Studies show Americans pay at least three times more for prescription drugs than

residents in other high-income countries. To reduce rising prices of prescription drugs and create a

more competitive prescription drug market in Wisconsin, the Governor recommends importing

generic, off-brand drugs from Canada into Wisconsin. To be eligible, imported drugs must generate a

significant savings to the state, have no more than three domestic competitors, and maintain federal

safety requirements.

he Governor also recommends creating a Prescription Drug Affordability Review Board to establish

prescription drug price spending targets for public sector entities and establish price limits when

necessary to control unjustifiable price increases and save taxpayer dollars from being funneled to

drug companies. A study into creating a prescription drug purchasing entity is also recommended to

further identify areas where the state can save taxpayer dollars on prescription drug purchases.

he Governor further recommends ending discriminatory reimbursement practices against federal

340B drug discount program participants, specifically federally qualified health centers, critical access

hospitals, and Ryan White HIV/AIDS programs, by requiring pharmacy benefit managers and other

insurers to reimburse those entities the same amount that they would reimburse non-340B program

participants. This ensures that costs aren’t being passed onto some of our most vulnerable

individuals.

he Governor’s budget will also fully fund the SeniorCare program. SeniorCare is a pharmacy benefit

program available to any resident of our state age 65 years or older. In 2022, 114,419 individuals

participated in the program, and participation is expected to increase over the biennium.

Improving Health Insurance Affordability

s part of the Governor’s continued dedication to improving healthcare affordability, this budget

recommends creating a state-run health insurance marketplace, transitioning away from a federally

facilitated marketplace. This initiative reduces the cost of plans on the marketplace, allows for more

efficient administration, and gives the state more autonomy over creating a marketplace that fits the

unique needs of Wisconsinites.

eighted by population, states that run their own marketplace experience lower average benchmark

premiums than states which rely on the federal platform. In 2022, average benchmark premiums,

which are the premiums for the second-lowest cost silver plans offered on the marketplace, on state-

based marketplaces were $32 less than those on federally facilitated marketplaces. The state can

also run its own marketplace for less than what insurers are charged by the federal government,

resulting in reduced costs for insurers as well as consumers. Additionally, running a state-based

marketplace would allow the state to establish its own open enrollment periods and enhance

marketing, outreach, and enrollment assistance efforts to ensure greater access to affordable health

insurance plans on the marketplace.

To ensure that all Wisconsin residents receive the same health insurance issuance and coverage

protections, the Governor recommends that the insurance marketplace guarantee the issuance of

health insurance for individuals that apply for coverage regardless of sexual orientation, gender

identity, health status, medical history or preexisting conditions, among others, and be prohibited from

charging greater premiums or out-of-pocket costs based on those factors. The Governor also

recommends prohibiting health insurance providers from establishing annual or lifetime limits on

health insurance plan benefits. The Governor further recommends requiring all health insurance plans

to provide coverage for essential health benefits as determined by the commissioner of insurance,

including the ten essential health benefits categories covered under the federal Affordable Care Act,

and to provide coverage for certain preventive services at no cost to the plan holder.

ust because a service is covered under an insurance plan does not guarantee it is available within a

reasonable distance to the plan holder. Therefore, the Governor proposes establishing network

adequacy standards to improve access to services by requiring in-network services be within set

travel times and distances from the plan holder. The Governor also proposes exploring standards for

appointment wait times, making sure that individuals get access to services within a few business

days.

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Being insured should not prevent people from choosing the most cost-effective medication option.

That is why the Governor recommends requiring insurers to apply discounts received from drug

companies for certain drugs towards a plan holder’s deductible and out-of-pocket maximum so that

individuals are not forced to choose between using a discount or making progress on their out-of-

pocket spending.

Finally, as people benefited from the safety and convenience of telehealth services during the

COVID-19 pandemic, the Governor recommends expanding coverage protections and providing

parity for those telehealth services to expand their availability. This includes requiring insurance plans

to cover telehealth services if an equivalent in-person service is covered, prohibiting insurers from

charging a higher cost-sharing amount for the telehealth version of an equivalent in-person service,

prohibiting annual or lifetime limits on telehealth services, and eliminating the need for prior

authorization to receive telehealth services under an insurance plan, among others.

COM

MITMENT TO VETERANS

Blu

e Ribbon Commission on Veteran Opportunity

In February 2022, the Governor signed Executive Order #157 creating a Blue Ribbon Commission on

Veteran Opportunity. The commission was charged with hosting listening sessions, gathering input

from stakeholders, and ideas for addressing challenges facing Wisconsin veterans, with a specific

focus on the areas of veterans trust fund sustainability, employment, education, housing, and

healthcare.

This budget includes many recommendations from the commission including the following and others

discussed in more detail further in this section:

• Conti

nuing the commitment to fully fund the Veterans Trust Fund by transferring

$18.25 million GPR in fiscal year 2023-24 and $18.0 million GPR in fiscal year 2024-25 from

the General Fund to the Veterans Trust Fund.

• Expan

ding the Veterans Outreach and Recovery Program

• Doubl

ing the grants for CVSO and TVSOs

• Ensur

ing ongoing state support for the Veterans Peer Run Respite Center.

• Expans

ion of veteran apprenticeship programs and the Hire Heroes program.

• Prov

ide funding to each campus of the University of Wisconsin System to expand on-campus

services to veterans.

• Prov

iding $250,000 at the Department of Health Services for grants for service animal

training organizations in attaining Assistance Dog International accreditation specifically for

providing PTSD dog training

Veter

ans Homes

The Wi

sconsin Veterans Homes are one of the longest running services the state provides to

veterans. The Wisconsin Veterans Home at King was first established in 1887. The Wisconsin

Veterans Home at Union Grove opened in 2001, and the Wisconsin Veterans Home at Chippewa

Falls opened in 2012. Ensuring that the care and services provided to our veterans in the state

Veterans Homes are of the highest quality is a top priority of the Governor and the Department of

Veterans Affairs. To maintain the high quality of care our veterans deserve at our veterans homes,

the Governor recommends increasing expenditure authority to fund increasing costs associated with

operating the Wisconsin Veterans Home at Chippewa Falls.

The cont

inued impacts of the coronavirus pandemic, along with aging infrastructure and changing

demographics have left the state’s Veterans Homes at King and Union Grove with a declining census.

Veterans, like most Wisconsinites, wish to stay in their homes with family and caregivers as long as

110

possible and many wish to stay close to loved ones as their needs increase and they require more

intensive care and skilled‑nursing care.

To addres

s these challenges, the Governor’s budget includes the Blue Ribbon Commission’s

recommendation to conduct a broad evaluation of the future needs of veterans in long-term care in

Wisconsin. This qualitative and quantitative evaluation of post-9/11 veterans will help the state gain

better awareness of the needs of veterans and their caregivers in the coming decades. This

evaluation would also explore the nature of injuries and advances in technology that could shift the

approach to patient care in the future.

The average daily census at the Veterans Home at King has been decreasing throughout the last four

years as shown in Chart 20. This decline poses several issues and questions for the Department of

Veterans Affairs, and as such, the Governor recommends a comprehensive analysis and

development of a master plan for the King veterans home and campus. The data gathered in this

study will help determine the scope of services and needs for veterans and will help the state

understand the future needs of new construction at this location.

CHART 2

0: AVERAGE DAILY CENSUS AT THE KING SKILLED NURSING FACILITY

The Gov

ernor is committed to ensuring quality care and continued services for the state’s veterans

who live at and rely on the Veterans Homes at King and at Union Grove, and as such, recommends

transferring $10 million GPR to the Department of Veterans Affairs to fully fund operations at these

homes.

Mental Health and Substance Use Disorder

The De

partment of Veterans Affairs operates the Veterans Outreach and Recovery Program, which

provides comprehensive mental health, substance use disorder treatment, housing assistance, and

other services to Wisconsin veterans. This critical program provides services to all individuals who

served in any component of the U.S. armed forces, including those that have previously served and

continue to serve in the National Guard and Reserve.

The Gov

ernor recommends providing $272,300 SEG in fiscal year 2023-24, $684,900 SEG in fiscal

year 2024-25, and 7.0 FTE SEG positions to expand the Veterans Outreach and Recovery Program.

The program would expand by 5.0 FTE SEG additional outreach and recovery specialist positions to

work with local partners to provide appropriate recovery supports to aid veterans and 2.0 FTE SEG

additional clinical coordinator positions to conduct mental health diagnosis.

The De

partment of Veterans Affairs also operates the Veteran Housing and Recovery Program

through partnerships with federal, state, and local governments, county veteran services offices, and

local stakeholders. The program provides homeless veterans with job training, education, counseling,

and rehabilitation services necessary to achieve steady employment and affordable housing. The

program operates 54 service intensive transitional housing beds and 51 clinical treatment beds

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across locations in Chippewa Falls, Green Bay, and Union Grove. The Governor recommends

increasing funding for the Veterans Housing and Recovery Program to explore expansion

opportunities in locations throughout the state.

The Gov

ernor’s budget also creates a veteran rental assistance program funded at $1 million GPR in

each fiscal year as recommended by the Interagency Council on Homelessness and elevated by the

Blue Ribbon Commission.

The Gov

ernor also recommends expanding the Assistance for Needy Veterans Grant Program by

allowing for the payment of medical devices and increasing the 12-month maximum grant award from

$3,000 to $5,000 per recipient and the lifetime maximum grant award from $7,500 to $10,000. This

will allow for more expenditures to qualify for reimbursement under the program and will increase

utilization of this grant program and provide a valuable benefit to veterans.

The st

ate recently opened a peer-run respite center specifically dedicated to veterans who are

experiencing mental health difficulties and need a safe place to go and be with individuals who

understand their situations. This budget proposes stable, ongoing state support to ensure this center

continues to serve veterans.

Cou

nty and Tribal Veterans Service Officers

Recogn

izing the importance of the role played by veterans service offices in each county to connect

veterans to the benefits they have earned, the Governor recommends a doubling the grants to

counties and the governing bodies of federally recognized Tribal Nations in support of the costs of

maintaining veterans service offices. The Governor also recommends eliminating the distinction

between counties with full-time and part-time veterans service officer positions.

D. BUILDING STRONG, SAFE COMMUNITIES

Shared Revenue, Property Taxes and Local Control

This

budget undertakes the first substantial reform and investment in the Shared Revenue program in

decades. After over 20 years of Shared Revenue first being frozen and then routinely cut, this budget

provides much-needed additional funding for our counties and municipalities.

In order to restore truly “shared” Shared Revenue, the Governor recommends allocating 1 cent, or

20 percent, of sales tax collections annually to fund Shared Revenue programs. After providing the

amount needed to continue existing Shared Revenue allocations under County and Municipal Aid,

Expenditure Restraint, and the county and municipal portions of personal property relief aid; the

remaining funds will be divided between aid for public safety purposes and general aid to

municipalities and counties to be used at the discretion of local governments.

The new

Shared Revenue appropriation will provide an aid increase for municipalities and counties of

$576.2 million GPR in fiscal year 2024-25. This is the estimated amount remaining of 20 percent of

the sales tax revenues projected to be collected by the state in fiscal year 2023-24 after deducting

existing aid payments to local governments as detailed above. Future allocations will grow with sales

tax collections and all new growth in the portion of the sales tax dedicated to Shared Revenue will go

into this new appropriation. Public safety aid will be 43.4 percent of the total funds available under the

new investment and will be determined as a percentage of each local government’s qualifying public

safety expenditures sufficient to distribute the aid each year, and no government will receive less than

$10,000 under the public safety aid distribution. The remaining 56.6 percent of the aid will be

distributed as general aid with 70 percent allocated to municipalities and 30 percent to counties.

General aid will be distributed with 15 percent of the general aid distribution being made on a per

capita basis while the remaining 85 percent will be distributed based on the aidable revenues as

adjusted by the local government’s equalized value per capita relative to statewide equalized value

per capita. For future distributions under the new Shared Revenue, no local government may receive

less than 95 percent of the prior year’s allocation.

The “shar

ed” nature of the new Shared Revenue program needs to be emphasized. Under this new

appropriation, every county, city, village, and town will receive an aid increase. Furthermore, every

112

county and municipality will receive additional funding under each component of the new program—

from the public safety component and from both the per capita and aidable revenues portions of the

new general aid. In addition, no county or municipality will lose any Shared Revenue related funding

they currently receive as long as the locality continues to meet eligibility requirements under current

law. County and Municipal Aid, Expenditure Restraint, and the county and municipal portions of

personal property relief aid will continue with no reductions. Municipalities will continue to qualify for

Expenditure Restraint as under current law and the Utility Aid portion of Shared Revenue will also

remain unchanged.

Compar

ed to the prior approach to Shared Revenue that existed before the formula was frozen, this

new Shared Revenue program differs in a few key respects.

The first is the allocation of funding dedicated to public safety. Municipal and county governments are

the primary providers of public safety services in the state, and it is one of their largest expenditures.

Because it is one of the most important functions for all county and municipal governments in the

state, this portion of the new Shared Revenue program is allocated via a simple cost-sharing

approach that makes no adjustments for relative property values. All municipal and county

governments will be aided at the same percentage of their three-year average law enforcement, fire

protection, and ambulance and emergency medical services costs, with a $10,000 minimum payment

per local government. Funds received under this allocation must be used for public safety purposes,

including local support for district attorneys’ offices and judicial system costs for counties. For the first

year of the allocations, it is estimated that the public safety funds provided will be approximately

$250 million.

CHART 21: DECLINING SHARED REVENUE HAS PUSHED UP COUNTY AND MUNICIPAL

RELIANCE ON PROPERTY TAXES

The second way in which the new program differs is in the approach taken for property tax base

equalization. Under the prior Shared Revenue program, tax base equalization was approached with

the objective of ensuring that local governments had an equivalent property tax base up to a given

standard equalized value per capita. Municipalities and counties with equalized value per capita

above that threshold would receive no aid at all under that component. This resulted in a strong

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

30.0%

32.0%

34.0%

36.0%

38.0%

40.0%

42.0%

44.0%

46.0%

Shared Revenue % of General Revenue

Property Tax % of General Revenue

Shared Revenue and Property Taxes Share of County and Municipal General

Revenue (Excluding Federal Aid)

Property Tax Share of General Revenue Shared Revenue Share of General Revenue

113

equalization component that left many communities out of receiving aid for their aidable revenues. By

contrast, this new proposal maintains eligibility for all municipalities and counties for general aid with

an equalization factor that is the ratio of a locality’s equalized value per capita compared to the

statewide average equalized value per capita on a sliding scale. A locality with half the equalized

value per capita compared to the statewide average will receive twice the percentage of its aidable

revenues in aid compared to a locality with equalized value per capita equal to the statewide average.

Similarly, a locality with twice the equalized value per capita compared to the statewide average will

receive half the percentage of aidable revenues in general aid that a community at the statewide

average. This approach balances the need for property tax base equalization to assist those

communities with the greatest need with providing all our state’s communities with a fair share of

Shared Revenue.

The third way in which this new approach to Shared Revenue differs from the prior Shared Revenue

program is the dedication of 20 percent of state sales tax collections on an ongoing basis. Previously,

the amount of Shared Revenue was determined on a discretionary basis by the Legislature in each

biennial budget. By establishing in statute this dedicated stream of revenue to fund aid to counties

and municipalities, local governments in Wisconsin can be assured that the state will remain

committed to providing additional resources in line with the growth of state tax revenues. Even

modest growth in sales taxes of 2.5 percent annually would provide increases of approximately

$40 million annually in new aid to municipalities and counties in the coming years.

By f

unding local public safety expenditures and providing significant new general aid to counties and

municipalities, Wisconsin localities will be able to make new investments to protect their residents and

grow their communities with critical infrastructure and public services. Frozen state aid and tight

county and municipal levy limits combined with rising cost pressures have led to steep declines in

local government employment. While municipal and county employment has been declining since

2001, the effects of the pandemic and the inflation since that time have eroded the ability of local

governments to maintain employment at even prepandemic levels. Compared to February 2020,

municipal and county employment is still down approximately 6 percent in Wisconsin, according to

the Bureau of Labor Statistics.

CHART 22: TIGHT LOCAL GOVERNMENT FINANCIAL CONDITIONS HAVE RESULTED IN

SHARP DECLINES IN LOCAL GOVERNMENT EMPLOYMENT IN WISCONSIN

Sourc

e: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

84,000

86,000

88,000

90,000

92,000

94,000

96,000

98,000

100,000

102,000

104,000

106,000

130,000

135,000

140,000

145,000

150,000

155,000

160,000

2001-12-01

2003-02-01

2004-04-01

2005-06-01

2006-08-01

2007-10-01

2008-12-01

2010-02-01

2011-04-01

2012-06-01

2013-08-01

2014-10-01

2015-12-01

2017-02-01

2018-04-01

2019-06-01

2020-08-01

2021-10-01

12-

MONTH AVERAGE LOCAL PUBLIC

ADMINISTRATION

12-

MONTH AVERAGE EDUCATION AND

HEALTH

WISCONSIN PUBLIC SECTOR EMPLOYMENT - LOCAL

Education and Health - Local Public Administration - Municipal and County

114

In addition to the restoration of a robust Shared Revenue program for municipal and county

governments in Wisconsin, the Governor’s budget also substantially bolsters local control while still

protecting Wisconsin property taxpayers across the state. Governments, like the people they serve,

have faced increasing cost pressures, but these can be met without abandoning the state’s

commitment to property tax relief. Local control and taxpayers’ interests need not be opposed to one

another.

The Gov

ernor recommends providing counties and municipalities with a 2 percent minimum growth

factor for county and municipal levy limits. Under current law, municipalities and counties are only

allowed to grow property tax levies by the percentage change in equalized value due to net new

construction, which varies widely across the state. Some fast-growing communities have a great deal

of new value installed each year while others see little, if any, growth. For 2022 equalized values,

928 out of 1,852 municipalities had growth below 1 percent, and 409 had growth below 0.5 percent.

Low growth has hit many rural communities in the state especially hard. Nonetheless, all local

governments face increasing cost pressures from inflation, especially on wages and fringe benefits

for employees and contracted services. Providing the same 2 percent minimum growth factor that

existed when county and municipal levy limits were first created will restore fairness to property tax

controls and empower our local elected officials to meet the needs of our residents.

CHART 2

3: MOST MUNICIPALITIES SEE LITTLE GROWTH FROM NET NEW CONSTRUCTION

Sourc

e: Department of Revenue, 2022 Equalized Value Data

Addi

tionally, the Governor recommends repealing or modifying other current law levy limit provisions

to further enhance local control and provide incentives for innovation. The first of these modifications

is the repeal of the current law levy limit adjustment that requires local governments transferring

services to another unit of government to take a negative adjustment to their levy limit related to the

transferred service. This current law penalty discourages local governments from undertaking service

consolidation if the purpose is to provide enhanced service among the consolidating communities.

Further, the Governor proposes modifying the current law adjustments for joint fire and emergency

medical services to ensure that all forms of service sharing arrangements in those vital services will

be covered by the levy limit adjustment. These changes remove current law barriers to collaboration

and consolidation among local governments.

100

150

200

250

NUMBER OF MUNICIPALITIES

RANGE OF NET NEW CONSTRUCTION GROWTH

Number of Municipalities by Range of Net New Construction

Growth

Statewide

Average = 1.7%

115

Beyond greater flexibility under levy limits, the Governor recommends providing counties and larger

municipalities with enhanced ability to fund important services with new local sales tax authority.

Specifically, the Governor recommends allowing Milwaukee County to impose an additional 1 percent

sales tax, with 50 percent of the resulting new revenue to be distributed to the city of Milwaukee, to

diversify revenue sources for both the city and county of Milwaukee and allow these local

governments to better address the unique circumstances that exist in the heart of the state’s most

populous metropolitan area. However, this new sales tax authority may only be utilized if approved by

a majority of voters by referendum in Milwaukee County.

Recogn

izing the needs of other larger communities, and of all other counties, the Governor further

recommends allowing counties, other than Milwaukee County, to impose an additional 0.5 percent

sales tax and allowing municipalities with populations over 30,000, other than the city of Milwaukee,

to impose a 0.5 percent sales tax to diversify local revenue sources and better fund police and fire

protection, transit, roads, and other important services. These new county and municipal level sales

taxes may only be imposed if approved by referendum by a majority of voters in the county or

municipality. The Governor proposes this authority for counties statewide in recognition of the many

services that counties are responsible for, especially in more rural areas. The time to allow counties

and municipalities to further diversify their revenue sources to provide necessary local services is

long overdue. Wisconsin makes light use of the sales tax, especially at the local level. Among states

imposing a sales tax, Wisconsin has the third lowest, population-weighted, combined state and local

sales tax rate of 5.43 percent, according to the Tax Foundation.

To eli

minate a burdensome tax on businesses while protecting homeowners, the Governor

recommends repealing the remainder of Wisconsin’s outdated personal property tax on businesses

and providing an estimated $202.4 million in fiscal year 2024-25 to compensate all local taxing

jurisdictions for the reduction in their property tax bases. The payments to local governments will

increase in future years with inflation. Over many years, the portion of personal property subject to

property tax has diminished, and now it is time to finally eliminate this obsolete tax. By ending

personal property taxes, businesses will no longer be required to go through the burdensome process

of annually determining the value of their personal property subject to this tax. Other states have

ended this tax long ago and it is time for Wisconsin to join them, reducing unnecessary workloads on

our businesses and reducing their overall tax burdens. Because the Governor’s recommendation

includes payments to local governments to offset the loss of this tax base, no shift of the property tax

burden to homeowners will occur. The Governor’s plan also ensures that the transportation fund is

made whole for any loss of revenue from the personal property tax.

The Governor also recommends provisions to help protect the local property tax base to ensure that

homeowners are treated fairly compared to developers and commercial landlords. This budget

includes the provisions of 2019 Senate Bill 130, which was a bipartisan initiative that would have

ensured that leased property would be assessed not against “dark stores,” abandoned or vacant

properties, but against sales of truly comparable properties in the same market segment while also

requiring that lease provisions and actual rents pertaining to a property are incorporated into its

assessed value. These are common sense reforms that have garnered bipartisan support. The

inclusion of these provisions will protect the property tax base for Wisconsinites all around the state,

ensuring fairness for homeowners and that every property owner pays their fair share in taxes.

The Gov

ernor’s budget will keep the total annual increase in property taxes on the median value

home well below 2 percent on average during the upcoming biennium because of policies that have

properly funded the state’s responsibilities to our local governments, including K-12 school districts

and technical college districts. Adjusted for inflation, property tax bills are down substantially since the

Governor took office, reflecting the commitment to investing in our schools and local governments

which reduces pressures to increase property taxes.

116

CHART 2

4: MEDIAN VALUE HOME PROPERTY TAX BILLS DOWN SIGNIFICANTLY VS.

INFLATION SINCE 2018/19

Broadband

The cor

onavirus pandemic revealed that a lack of access to reliable, available, and affordable high-

speed internet poses roadblocks for schools, businesses, and residents across Wisconsin and only

underscored the necessity of broadband infrastructure and high-speed internet. That’s why the

Governor declared 2021 the Year of Broadband Access, and over just the past two years, the state of

Wisconsin has approved nearly $225 million in broadband infrastructure grants through a combination

of state and federal funding. These historic investments have helped Wisconsin bridge the digital

divide by supporting 154 broadband infrastructure projects that have or will provide high-speed

Internet to nearly 118,000 homes and businesses. However, thousands of Wisconsinites still lack

access to reliable, affordable high-speed Internet.

According to the Governor’s Task Force on Broadband Access 2022 Report, there are 650,000

Wisconsinites without access to internet speeds of at least 25 megabits per second (mbps) download

and 3 mbps upload. The Governor understands that reliable access to broadband internet service is

crucial for many aspects of today’s society, including connecting business and schools to the world,

linking job seekers with employment opportunities and accessing telehealth services. For too many

areas throughout the state, inadequate internet access limits economic development as well as

recreational, educational, health and work opportunities.

In hi

s first biennial budget, the Governor made a $48 million GPR investment in broadband—the

largest state investment in broadband in our state’s history. In his second budget, the Governor

invested an additional $129 million for broadband expansion. The Governor’s historic investments in

broadband have yielded results. Additionally, under Governor Evers, the Public Service Commission

has awarded 95 broadband grants, funded using the $105 million received by the state under the

federal CARES ACT and the American Rescue Plan Act. In total, under the Evers Administration, the

Public Service Commission has awarded 333 broadband grants with $289 million in state and federal

funds, which have provided or will provide broadband infrastructure to approximately 391,400 homes

and businesses across Wisconsin. Moreover, the commission will award an additional $14.1 million in

state-funded grant funding in the coming months.

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Despite an expected influx of federal broadband funding authorized under the Bipartisan

Infrastructure Law (BIL) and the American Rescue Plan Act over the 2023-25 biennium, more

resources are needed to fully build out the modern, high speed broadband infrastructure that

everyone in our state needs and deserves. Recognizing the importance of this infrastructure to nearly

every facet of modern life, the Governor is recommending an unprecedented investment in the state-

funded Broadband Expansion Grant Program of $750 million GPR. Under the Governor’s plan, the

commission will distribute no less than $75 million annually in broadband grant awards. This

investment from the state’s historic surplus illustrates the Governor’s urgency to address the need for

adequate broadband infrastructure across all of Wisconsin. The budget also retains the existing

statutory requirement to utilize at least $2 million annually from the Universal Service Fund for the

grant program. The Governor recognizes that access to high-speed internet is not a luxury—it is a

necessity. This proposed historic increase is more than four times larger than the total funding

provided to the grant program over the past two budgets.

The Gov

ernor’s budget also recommends including statutory language that strengthens the

Broadband Expansion Grant Program and raises the bar for what is considered to be minimum

broadband speeds. First, to ensure we are building infrastructure that meets the high-speed internet

needs of Wisconsinites, the budget increases the statutory threshold for areas considered to be

broadband “unserved” to service speeds less than 100 mbps download and 20 mbps upload. The

budget also requires the Public Service Commission to reevaluate this speed definition every two

years to align the statutory threshold with the market conditions and technological advancement. The

budget also requires the commission to give priority to grant applicants capable of offering speeds of

at least 100 mbps download and 100 mbps upload and establishes a challenge procedure for internet

service providers that indicate they have verifiable plans to provide service to an area that has been

awarded a grant. By strengthening and further modernizing the Broadband Expansion Grant

Program, the Governor’s budget will ensure that grant funding is distributed efficiently and effectively,

while acknowledging the rapid advancements in broadband speed and technology.

In addi

tion to this historic financial investment, the Governor’s budget tackles the issue of broadband

access and affordability through the following initiatives. In some corners of Wisconsin, the cost of

telecommunications companies connecting communities exceeds potential profits even with federal

and state grants and incentives, leaving residents of these communities with few to no options for

broadband service. In these cases, the Governor’s budget reduces some of the requirements that

make it difficult for municipalities to directly invest in broadband infrastructure for their communities.

There are 260 communities nationwide that currently offer access to publicly owned fiber internet to at

least a portion of the city, and 31 states feature at least one citywide publicly owned network offering

at least 1 gigabit service. Wisconsin is among 17 states with barriers that discourage or prevent local

communities from investing in publicly owned broadband infrastructure. Allowing unserved Wisconsin

municipalities to do the same if internet service providers choose not to connect their communities

and their residents support the investment is a common-sense option to help close the digital divide in

the state. For the third consecutive budget, the Governor recommends reducing these onerous

statutory limitations. The Governor also recommends modifying current law to allow these same

municipalities to apply for grants under the Broadband Expansion Grant program.

The Gov

ernor’s budget also recognizes that for many households access to broadband infrastructure

is only several hundred yards away. However, line extensions are often cost-prohibitive for residents,

and service providers have no legal obligation to provide service or connect a household to that

infrastructure. To address this situation, the Governor recommends establishing a broadband line

extension grant program, which will provide grants or financial assistance to eligible households to

subsidize the cost of a line extension from existing broadband infrastructure to their residence without

access to broadband service.

In addi

tion to supporting the development of additional broadband infrastructure, the Governor’s

budget includes a provision to improve the quality and reliability of current broadband service. State

law does not currently provide the same level of consumer protection for broadband service as it does

for other telecommunication and video services. There are no specific regulations that address

consumer access to broadband service, consistent speed delivery, or service interruptions. The

Bureau of Consumer Protection within the Department of Agriculture, Trade and Consumer Protection

has received more than 680 consumer complaints each of the past five years related to electronic

communication services, and many of these complaints pertain to broadband issues. Without specific

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regulatory authority, the department must mediate the complaints without any specific enforcement

powers. The Governor recommends modifying current law to protect broadband customers by

requiring broadband service providers to meet certain service requirements, including prohibiting a

broadband service provider from denying service to residential customers on the basis of race or

income and requiring providers to award credits to customer’s internet bills if their service is

interrupted for extended periods of time. These new consumer protection regulations for broadband

providers will mirror the existing statutory consumer protection regulations governing cable, satellite,

and multichannel video services.

Tra

nsportation

Wis

consin residents expect and deserve quality roads, bridges, airports, railways, and harbors.

Wisconsinites further expect that this infrastructure be kept in good, working order to support the

needs of all current and future users. The Governor shares these expectations, and this budget

continues to take actions to make these expectations a reality for the families, workers, and

businesses that depend on our transportation investments. This budget builds upon past successes

in keeping new bonding low and targets spending increases on programs that touch the entire state.

The Governor makes investments to help our local governmental partners utilize the increases in

federal funding opportunities made available through the Bipartisan Infrastructure Law. Additionally,

the budget promotes fiscal responsibility by allocating a portion of the state’s historic one-time

revenues to prepay a portion of transportation fund debt, a move that will improve the condition of the

transportation fund in future years by decreasing ongoing debt service. It also devotes ongoing

revenues that are directly linked to the use of Wisconsin’s roadways to the transportation fund to

ensure sustainable and growing transportation resources into the future without increasing fees on

Wisconsinites. Regardless of which mode of transportation a traveler takes or if goods are moving by

ship, train, truck or plane, the Governor’s budget supports our transportation infrastructure.

Specif

ically, the Governor’s budget enhances local government’s ability to benefit from newly

available federal funds for local road projects by creating two programs to increase local government

capacity and to ensure federal rules are satisfied. The Governor proposes creating a preproject

assistance program to cover costs of a project before it becomes eligible for federal funding that will

remove a common barrier for smaller communities that may not otherwise apply for federal funds due

to lack of resources to devote to a one-off process. This budget also provides funding for technical

assistance to localities to continue to meet federal reporting demands throughout the duration of a

local transportation project.

Local communities are supported again in this budget, including local priorities for both motorized and

nonmotorized travel. General transportation aids for both counties and municipalities are increased by

4 percent in calendar year 2024 and another 4 percent in calendar year 2025. Complete streets

provisions are reinstated, and local municipalities can again use eminent domain to purchase

property for nonmotorized transportation projects. Also included in this budget is $60 million GPR to

fund traffic calming grants to make biking, running, and walking safer. Building on the last budget,

$50 million SEG is allocated annually beginning in fiscal year 2023-24 in an ongoing local road

improvement program supplement to help accelerate high priority local bridge and road projects

throughout the state. Mass transit aids are increased in the budget by 4 percent in each calendar

year, along with increases for paratransit aids, elderly and disabled aids, and support for employee