Five Proposals Addressed in Gov. Evers 2025-27 Budget and What it Means for You

Gov. Tony Evers released his 2025-27 biennial budget proposal on Feb. 18. Here are five key proposals addressed in his budget and what they mean for you.

Although the budget address ended with representatives, Democrats, and a small number of Republicans standing and applauding the UW-Madison marching band performance of “On, Wisconsin!”, the budget is expected to face fierce challenges when it is proposed to the Republican-controlled legislature.

“The budget I’m proposing balances our priorities of investing in our kids and needs that have been long neglected while providing real and sustainable tax relief and saving where we can,” said Evers.

For the budget to reach the governor’s desk for a signature, it must first be passed by the legislature. The Republican-controlled legislature has already expressed opposition to most of the budget and is expected to make major changes before passing a final version for the governor’s approval.

“I would have thrown the whole thing in the garbage and started all over,” said Assembly Rep. Bob Donovan (R-District 61). The Republican legislator is in his first term representing Wisconsin’s 61st Assembly district after representing the 84th Assembly district from 2023-2025.

With each political party controlling a branch of Wisconsin’s government, executive and legislative, the divided government can lead to a political gridlock. A political gridlock is when no laws or bills are passed because the rival parties control different parts of government.

“We definitely have had gridlock for several years in Wisconsin,” said Dr. Kathleen Dolan, a distinguished professor at the University of Wisconsin-Milwaukee.

The governor’s budget introduced both new items and old items that have been in past budgets. Here are five proposals addressed and what they mean for you.

K-12 Education

In the governor’s annual State of the State Address, he declared 2025 “The Year of the Kid.” The initiative focuses on the state’s efforts to support kids and their families.

Evers supported his initiative in the budget with more than $3.1 billion proposed for public schools across the state. $3.1 billion is an increase from the governor’s previous budget proposal for $2.64 billion in funding for public schools.

The proposal comes after a record-breaking number of referendums were held in 2024. According to a report from the Wisconsin Policy Forum, 145 districts passed a referendum in 2024, accumulating $4.4 billion in funds.

“I’m asking the Legislature to approve a budget that does what’s best for our kids at every stage, in every way, and no matter where they live in our state,” said Evers. “I’m excited to be introducing the most pro-kid budget in state history.”

UW System Funding

Evers proposed $856 million in funding over the biennium to the University of Wisconsin System, the largest two-year increase in state history. The funding is the governor’s latest attempt to avoid tuition raises and campus closures at each of the UW System schools.

“This is a make-or-break budget for our UW campuses,” Evers said.

However, it may be difficult for the governor’s request to be approved by the legislature unless the UW System or the governor is willing to compromise on the budget or standards, including potential audits.

“I think we have an obligation to our taxpayers to ensure that every penny going to our universities is being spent wisely in the classroom,” said Donovan. “We need to take a close look at every campus, every university, and see that things are moving in the right direction.”

Auditing health insurance companies

Evers announced an initiative to audit health insurance companies, which would be the first of its kind at a state level. The proposal would audit insurance companies that have denial rates that are “too high.”

“If an insurance company is going to deny your healthcare claim, they should have a darn good reason for it,” said Evers.

The budget would add an office to focus on Wisconsinites whose insurance claims were denied. A “corrective action plan” would be put into effect to make sure insurers are following the plan and to ensure claims are not being denied excessively.

However, the proposal is predicted to be met with hard opposition from the Republican-controlled Legislature.

“No, I don’t think it’s going to get bipartisan support,” said Donovan. “If I were the private sector insurance companies, I’d be demanding an audit on state government.”

No tax on cash tips

A bill proposed by the governor would eliminate the income tax on cash tips. A bill that President Trump has expressed interest and support at the national level. It is estimated to reduce the income tax revenue by $6.7 million annually.

Unlike the proposal to audit health insurance companies, this bill has a path to bipartisan support. A similar bill was introduced on Jan. 27 by Republican legislators, Rep. Ron Tusler and Sen. Jacque.

“Today, Sen. André Jacque and I introduced a bill to exempt income earned from tips from state taxes. President Trump is pushing for this federally, and it’s time Wisconsin follows suit. I’m proud to lead this initiative in the Assembly to support dedicated tipped workers,” Tusler wrote on X.

Water Quality and PFAS

A frequent proposal from the governor in his budgets has been addressing PFAS and water quality. The budget calls for over $145 million to address PFAS and other contaminants. The budget improves upon his 2023-25 budget request of $100 million.

Evers proposed creating a “PFAS Community Grant Program.” The program would help test and eliminate PFAS from drinking water. The budget would provide grants to local businesses and communities to help reduce and eliminate PFAS.

Evers asked for more than $300 million to address and replace lead pipes in service lines, schools, homes and childcare centers.

“In the last few weeks, Wisconsin has seen cases of lead poisoning in kids who were exposed to dangerous levels of lead at school,” said Evers. “That should never happen anywhere in Wisconsin. Period.”

According to the Knowles-Nelson Stewardship Program website, the program is set to expire in June of 2026. Evers proposed that the program be extended another ten years. The program is an environmental conservation effort that has preserved natural resources and wildlife habitats across the state since 1989.