Gov. Evers Signs 2021-23 State Budget Bill
Earlier today, Gov. Tony Evers (D) signed the 2021-2023 state budget bill into law. However, before signing the bill, Evers used his broad veto authority to make 50, mostly minor changes to the state’s two-year spending plan, which was largely reshaped by the Republican-controlled Legislature over the past few months. His line-item vetoes included reducing the Legislature’s $3.4 billion proposed tax cut. However, Evers maintained more than $2 billion in tax cuts for Wisconsin residents by approving the GOP’s initiative to reduce the third individual state income tax bracket.
Evers also approved the following budget initiatives that were supported and actively lobbied on by WEDA:
- Require the Wisconsin Economic Development Corporation (WEDC) to expend $3 million over the two-year budget cycle for talent attraction and retention initiatives.
- $129 million for the state’s broadband expansion grant program. This funding is on top of $100 million in American Rescue Plan Act (ARPA) funding Evers already committed to broadband expansion.
- $1 million a year in additional funding for the Youth Apprenticeship Grant Program and increase the maximum grant award from $900 to $1,100 for each youth apprentice served by the program.
Other WEDA budget items of interest include:
- Increasing the refundable research credit rate from 10 percent to 15 percent to provide additional incentives for businesses to engage in research and development in Wisconsin.
- The creations of a new nonrefundable tax credit equal to 50 percent of the federal child and dependent care credit beginning in tax year 2022.
- Providing $40 million in tax relief for servicemembers to cover all basic, special and incentive active duty pay.