Here’s what is in the new Wisconsin state budget

Listen to this article

Gov. Tony Evers early Thursday morning signed the biennial state budget, which affects services for residents including childcare and education, but also money for roads, water infrastructure and the state university system.

The Republican-controlled Legislature sought needed Democratic votes to approve a compromise deal between the governor and the Joint Finance Committee. In the early morning hours, Evers signed the 2025-27 budget after promising not to cut any portions he agreed to with the joint committee, the Associated Press reported.

The incoming budget will have an 8.6% increase to the State Highway Improvement Program, $840 million for UW-System capital projects and more than $700 million for water infrastructure. Included is money for projects such as renovating the former Columbia Hospital at UW – Milwaukee and closing the Green Bay Correctional Institute.

Road funding, design build gets a boost

The deal between legislative leaders and the governor will generate hundreds of millions in new transportation revenue, will kickstart a massive freeway reconstruction project, invest in local and rural road maintenance and start a work zone safety educational program, officials with the Wisconsin Transportation Builders Association said.

One of the significant budget items for construction is the $1.2 billion increase in transportation spending through all funds.

There will be a $715 million increase in new revenue, including a one-time general fund transfer of $565 million, officials said. The deal will also approve reconstruction of Interstate 39/90/94 between Madison and Milwaukee Dells and will also provide initial funds to kickstart the I-94 East-West project in Milwaukee County. The budget will also give $92.5 million to grow the state’s Design/Build program, officials added.

With money in the state budget, the I-94 East-West project will be able to start in September, officials noted.

Overall, the Joint Finance Committee approved more than $3.7 billion for state highway improvement, including through the State Highway Rehabilitation, Major Highway and Southeast Wisconsin Megaprojects programs, according to WTBA.

The Legislature cut the proposed title fee increase but filled the gap with the one-time transfer to the state’s general fund, WTBA officials said. Lawmakers reduced the title fee increase from $120 to $50 and terminated a proposed sales tax transfer on auto parts, officials added.

Not only were the roadbuilders happy about transportation funding, but so were the cheesemakers. The Wisconsin Cheese Makers Association applauded the Legislature and the governor for including $150 million to support the Agricultural Roads Improvement Program.

For General Transportation Aids, which are quarterly payments to municipalities for road maintenance and highway policing, there was a 3% increase for each funding year, the governor’s office said.

More than $700 million ready for drinking water systems

Responding to contaminants such as polyfluoroalkyl substances in the drinking water, the governor signed on a $731.6 million borrowing increase for drinking water infrastructure for communities. The Joint Finance Committee approved the number for the Environmental Improvement Fund, which fuels the Clean Water Fund and Safe Drinking Water Program. The EIF offers loans below market rate to municipalities who want to address contaminants or expand their existing infrastructure.

The demand for programs “exceeds the capacity we have,” State Sen. Howard Marklein, a Republican who co-chairs the JFC, said at a news conference.

The committee also approved raising the state match increase by more than $73.6 million, and increased revenue obligation bonding by more than $658.5 million. The latter will be used to fund around 87% of expected financial assistance needs for four years.

In the last budget, lawmakers increased bonding authority by $46 million.

Health Sciences building in Milwaukee, Science Hall in Madison move forward

The deal also supported more than $840 million for capital building projects on Universities of Wisconsin campuses across the state, Evers said in a statement.

One caveat is that academic staff are required to teach at least 24 credits per academic year and an additional six credits on the summer if they are on a 12-month contract, the JFC’s amendment showed.

That requirement will start September 2026.

Campus projects include:

• $194.4 million for UW – La Crosse to complete the Prairie Springs Science Center
• $189.3 million for UW – Milwaukee to carry out renovation the Health Sciences center and Northwest Quadrant, also known as the former Columbia Hospital
• $181 million for UW – Oshkosh for renovations and additions to the Polk Learning Commons
• $98 million for UW – Stevens Point for additions and renovations to Sentry Hall
• $31.7 million for UW – Stout for additions and renovations to the Recreation Complex
• $163.2 million for UW – Madison for Science Hall renovations.

Green Bay correctional facility will be moved, opening way for redevelopment

The Joint Finance Committee agreed on $15 million to plan a construction project for the Wisconsin Department of Corrections and lead to closing the Green Bay Correctional Institute by 2029. There’s no clear plan yet on where inmates will go or how they will be moved, but local governments have eyed the complex for redevelopment. The maximum-security prison was built in 1898.

Included in the budget is more than $2.6 billion for the state building program for capital projects, a budget document showed.

With the months-long budget process budget arrived some cuts and some proposals leaving more to be longed for. Legislators approved $6 million for the state’s Youth Apprentice Program, which Democratic lawmakers criticized as the previous budget had $19 million. The Department of Safety and Professional Services faced a 31% staff cut under the advancing budget.

This story will be updated.