Wisconsin Republican leadership will craft its own capital spending plan after rejecting Gov. Tony Evers’ mostly bond-financed $2.38 billion proposal in what marked the first salvo in a looming budget fight.
The Wisconsin Building Commission’s GOP members blocked passage of Evers’ plan at a meeting last week by rejecting all of the proposed capital projects earmarked for funding in a split four-to-four vote. Evers serves as chair of the commission that holds sway over state capital and bonding authority and is made up of lawmakers and citizen appointee. A majority is required for approval.
Evers accused the GOP majority on the commission of playing politics with his proposal. He has tied it to his operating budget dubbed the Badger Bounceback budget. “These investments would have helped ensure tens of thousands of jobs and billions in estimated economic impact for our state,” Evers said.
The governor has estimated the economic impact of the capital spending at $4.3 billion. About $1 billion would go to the University of Wisconsin system with funding also earmarked for state facilities, sustainable energy projects, juvenile justice facilities, public lands, and community development.
The rejection marked a repeat of the process from two years ago in Evers’ first two-year operating and capital budget process when the commission shot down the plan for the first time ever. Since the prior rejection, Evers has butted heads with the Republican majorities over measures to slow the spread of COVID-19.
The dispute underscores the deep divisions between the legislature’s GOP majority and the Democratic governor. During past times with divided partisan leadership, the governor and lawmakers have been able to forward a Building Commission-approved package to the legislature.
Two years ago, the GOP majority ended up putting many of the projects into the version it passed, after cutting about $600 million from the roughly $2.4 billion package. That could happen again, but the rejection of the entire plan provides a rebuke and signal that the GOP will use it power to shape both the operating and capital plans.
During the meeting, GOP members praised some projects, but said they needed additional review and questioned the level of borrowing. They also suggested more review was needed into the impact of the federal relief coming, as that stands to impact the operating plan.
“Lots of things have merit, but we can’t afford everything we want,” said Sen. Jerry Jacque, R-Marathon.
Rep. Rob Swearingen, R-Rhinelander, raised concerns over how much in borrowing the legislature was willing to support.
The state and its local governments are in line to receive $5.7 billion from the federal government, with the state’s share at $3.2 billion. GOP leaders have said the one-time federal dollars should be focused on one-time expenses.
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The powerful, budget-writing Joint Finance Committee will now craft a capital plan. Republicans hold a 12-4 majority.
The governor and Joint Finance Committee are separately hosting a series of upcoming budget hearings. Evers last month unveiled a $91 billion two-year operating budget. The new fiscal year begins July 1, but appropriations based on prior numbers would continue and debt service is not at risk if a new budget is not in place.
Separate from the capital plan, the $91 billion two-year operating budget authorizes $1.15 billion of new GO borrowing but $700 million of that figure represents a 10-year annual $70 million authorization for the state’s stewardship program so only $140 million would be tapped in the next biennium.
The budget authorizes $540 million or revenue-backed bonding for transportation and environmental projects. The budget also gives the capital finance office another $2 billion in refunding authority.
The state heads into the new biennium in
