Evers’ proposed state budget includes major increases for transportation, lead pipe replacement

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Wisconsin Gov. Tony Evers made a sweeping budget proposal with billions in tax cuts for middle class residents, tax increases for the wealthy and investments in education. But the governor also included investments for roads, lead service line replacements, energy and protections for organized labor in his address to lawmakers in Madison.

This was the fourth budget address Evers has given since taking office in 2019. The state is expected to end the 2023-25 biennium with a nearly $4.3 billion surplus in the general fund. Wisconsin also had a record-high “rainy day” fund surplus of $1.9 billion at the end of 2023-24, the governor’s “Budget in Brief” showed.

In his budget, Evers proposed nearly $420 million in new transportation revenue through title fee increases and sales tax on car parts. The governor also pitched a combined $300 million for lead service line replacements and lead-safe renovations. Evers also announced millions for a renewable energy grant program, harbor infrastructure improvements and improvements of agricultural roads.

The budget will need approval from the Wisconsin Legislature before it can be enacted. The state Assembly and Senate typically act on the budget in June on an odd-numbered year. The governor will also release a capital budget in March.

Evers pitches nearly $420 million in new transportation revenue

Evers proposed raising nearly $420 million for the Transportation Fund to support investment in highway and transportation infrastructure. The revenue increases would come in two parts: the first from moving part of the state’s sales tax on the sale of automobile parts, tires and repair services; the second would come from increasing car title fees by $120.

The governor also proposed increasing the general transportation aids program by 3% in 2026 and 2027 for counties and municipalities. The program gives money to local government to cover maintenance and operation of roads and highways. The budget would also provide more than $2.62 billion in funding over the biennium for the state highway rehabilitation program.

Funding for several major road projects is also included in the governor’s pitch. Those are the Interstate 39/90/94 expansion from Madison to Wisconsin Dells, the Interstate 41 expansion from Appleton to De Pere and the Interstate 94 East-West project.

Under the proposed budget, the governor asked to modify the local road improvement program and agricultural road improvement programs to include replacement of aging bridges and culverts using a study funded in the last biennium. Both the local roads and agricultural roads program will get a financial boost under the budget.

As a bonus, the transportation leg of the proposed budget included $5 million over the biennium in bonding for the Freight Rail Preservation program and $15 million to support passenger rail service in Wisconsin and study new passenger rail routes.

It also appears the governor wants to spend $6 million to improve the I-39/90/94 interchange with County Highway V in Dane County, a newsletter to Wisconsin Transportation Builders Association members showed. The money would come from WisDOT’s Local Roads Improvement Program and could support a future Buc-ee’s gas station and convenience store location in Deforest. In January, the city of Oak Creek announced it would get its own Buc-ee’s.

Wisconsin looks to spend hundreds of millions replacing lead pipes, removing lead from buildings

Evers pitched a combined $300 million to replace lead pipes and remove lead from buildings statewide. A total of $200 million would be allocated for replacing lead service lines and one-time $100 million funding to restart the Windows Plus Program to provide lead-safe renovation to schools, homes and childcare centers. Lead, which was commonly used in paint and plumbing fixtures, is connected to health and developmental problems.

More than 37,000 lead service lines in Wisconsin were replaced or turned off since 2018, according to a 2023 report from the Wisconsin Policy Forum. With the help of funding from the Infrastructure Investment and Jobs Act, the state has been able to continue replacement, governor’s officials said.

However, there are more than 150,000 lead service lines in the state, so the budget will build on IIJA’s momentum, officials noted.

The governor also proposed $7 million to help in-home childcare facilities to remediate lead from their water.

Governor wants more money for energy

The governor’s budget proposal included investment in renewables and alternative energy.

“Gov. Evers knows that the state doesn’t have to choose between mitigating climate change and protecting the environment and good-paying jobs and economic development — Wisconsin can and will do both, and the Governor’s budget includes the following key recommendations to assist the state in doing just that,” governor’s officials said in a report.

Evers proposed $50 million to support the Green Innovation Fund, which leverages public and private investment in renewable energy. Additionally, the governor wants to use $20 million to support the Energy Innovation program which supports different organizations that invest in projects related to energy efficiency, renewable energy, energy storage and energy planning.

Evers also proposed doubling the required utility contribution for the Focus on Energy program from 1.2% to 2.4% of annual operating revenues, which would create an extra $100 million for the program.

Other energy investments included $1 million to conduct a nuclear power plant feasibility study, officials said.

Another $1 million would go to the Public Service Commission of Wisconsin to create a pilot program that helps developers and electric providers with the cost of developing renewable energy infrastructure on brownfield sites, officials added.

Construction industry excited over transportation, lead pipe replacement, measures for labor

Both construction labor unions and contractor associations released statements praising different parts of Evers’ address.

Officials from the Wisconsin Transportation Builders Association said the nearly $1 billion proposed for the state’s transportation system “would help begin critical road projects that make your drive safer, smoother, and better through central, southeast, and northeast Wisconsin.”

“The critical importance of keeping our roads safe and our economy strong through smart transportation investment is one of the rare areas of the state budget with bi-partisan consensus,” said Steve Baas, executive director of WTBA, in a statement. “This is a strong starting position as the Legislature begins its own work on the budget,” he added.

Evers proposed borrowing around $630 million to support major and southeast megaprojects and the state’s highway rehabilitation program, WTBA officials said. The association noted the plans included an 18% increase for state highway rehabilitation, a 26% increase for southeast megaprojects and a 34% increase for major programs across the state.

“We appreciate Governor Evers’ ongoing commitment to sufficient, sustainable transportation funding and look forward to working with the Legislature to build on the solid foundation the Governor has laid out in his budget,” Baas said.

The Wisconsin Laborers’ District Council praised Evers’ budget for infrastructure and measures supporting workers.

“Gov. Evers’ budget proposal makes significant investments that not only rebuild our state’s infrastructure but also provide opportunities for Wisconsinites to get great paying jobs doing this important work,” said Kent Miller, president and business manager of the Wisconsin Laborers’ District Council. The union represents more than 9,000 craft laborers throughout the state.

The union also recognized Evers’ proposal to make a tax deduction for union dues, repealing Wisconsin’s right to work law and reinstituting prevailing wage laws.