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Fitzgerald Unveils Senate GOP Budget Plan

Measure Would Borrow $712M For Roads, Eliminate Personal Property Tax

By
State Sen. Majority Leader Scott Fitzgerald
Shawn Johnson/WPR

State Senate Republicans unveiled a budget proposal Tuesday they say should help resolve Wisconsin’s budget impasse, but the plan is remarkably similar to ideas already rejected by GOP leaders in the Wisconsin Assembly.

When it comes to transportation — the major sticking point in negotiations that have already dragged on 18 days past Wisconsin’s budget deadline — Senate Republicans would borrow $712 million to keep major highway projects on schedule.

That’s a far cry from Assembly Speaker Robin Vos’ suggestion last week that Assembly Republicans will support no borrowing for roads without a new tax or fee to pay for it.

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Fitzgerald reiterated Senate Republicans’ objection to new gas taxes or vehicle registration fees for roads even as he floated the prospect that a future Legislature might have to raise them.

“I’m not saying — I don’t think anybody’s saying — that down the road, there might not be a need for more new revenue,” Fitzgerald said. “But there just doesn’t seem to be a level of comfort to move in that direction right now, at least from the Senate caucus.”

Fitzgerald said the 660-page Senate Republican budget plan clearly laid out where his members stood and it put the onus on Assembly Republicans to offer ideas that were palatable to Senate Republicans and Gov. Scott Walker.

“I’m comfortable with the message I’m getting from my own caucus which is: Let’s move on,” Fitzgerald said. “Let’s continue to do our own thing, develop our own strategy, ask the Assembly to weigh in on these things as we go along.”

At the same time, Fitzgerald said he could not promise he had the votes in the Senate to pass what he unveiled Tuesday.

“I’m not going to make that prediction that I have the votes right now,” Fitzgerald said.

The Senate GOP budget plan includes areas where Republicans on the Legislature’s budget committee have already agreed, like funding for the University of Wisconsin System.

When it comes to funding for K-12 public schools, Fitzgerald said Senate Republicans would support spending roughly the same amount as Walker.

GOP Senators want to increase the amount of money a family could earn while still participating in Wisconsin’s private school voucher program.

Right now, in order to receive a taxpayer subsidy to attend a private voucher school, a family can earn up to 185 percent of the federal poverty level. That’s roughly $45,000 per year for a family of four.

Under the Senate GOP budget plan, that threshold would increase to 220 percent of the federal poverty level, or nearly $54,000 per year for a family of four.

Assembly Republicans want to increase income limits even more to 300 percent of the federal poverty level. For a family of four, that would be nearly $74,000 per year

Fitzgerald said senators would break with Walker when it comes to tax cuts, phasing out Wisconsin’s personal property tax on businesses instead of cutting income taxes and creating a sales tax holiday as the governor proposed.

Walker spokesman Tom Evenson said the governor would continue to advocate for income tax relief and keep working with the Legislature to reach a budget agreement.

“Governor Walker welcomes the initiative by the Senate to move the process forward while keeping his priorities largely intact on K-12 education funding, property tax relief and transportation,” Evenson said in a statement.

Assembly Speaker Robin Vos, Assembly Majority Leader Jim Steineke and Assembly Joint Finance Committee Co-Chair John Nygren issued a joint statement saying they’d give the Senate plan consideration.

“It’s good to see Senate Republicans have solidified their positions and are ready to come back to the table to complete work on the state budget,” read the statement. “We appreciate that Sen. Fitzgerald also admitted that additional revenue is needed for our roads; if not today, sometime in the future.”

Sen. Jon Erpenbach, D-Middleton, said blame for the GOP impasse rests squarely at Walker’s feet.

“The Republicans in the Assembly rule, the Republicans in the Senate rule and the governor is a Republican,” Erpenbach said. “I don’t think it’s the speaker’s fault, I don’t believe it’s the majority leader’s fault, I think it’s the governor’s fault.”

Erpenbach also criticized Republicans for spending more money on tax cuts when Wisconsin’s roads are in poor condition.

“It’s really frustrating to talk about tax breaks when I’m driving down potholes all over the place to get to work,” Erpenbach said.

Walker, Fitzgerald and Vos were expected to discuss the budget privately during their weekly meeting Wednesday.

Editor’s Note: This story was last updated at 6:37 p.m. Tuesday, July 18, 2017.