Republicans pass workforce plan with middle-class tax cut that Evers previously vetoed

MADISON — The stalemate over Wisconsin's child care and workforce issues is continuing as the Assembly passed Republicans' rewrite of Democratic Gov. Tony Evers' special session plan.

At the heart of the GOP plan is a tax cut for a broad group of middle-class earners that Evers previously vetoed, which Republicans said could also help pay for expenses like child care.

The tax bracket "encompasses so many of the people that need child care help. This is going to give them more money, dollars in their pocket for them to choose how they want to use it," said Rep. Karen Hurd, R-Fall Creek.

Democrats said they felt hopeful when Republicans assigned the bill to a committee instead of gaveling in and out of the special session, but criticized the amendment for containing elements that Evers has previously vetoed instead of seeking compromise.

"We had an opportunity, and we thought we had a bill, and then the bill was gutted," Rep. Deb Andraca, D-Whitefish Bay, said during floor debate Tuesday. "What we're giving (Wisconsinites) is veto bait. And they deserve a lot better than that."

The Assembly already passed the plan in mid-October with all Republicans voting for it and all Democrats voting against. One Republican joined Democrats in opposing the bill Tuesday.

The bill now heads to Evers, who has rejected provisions in the Republicans' plan, including tightening rules on unemployment insurance.

Evers also opposed the same tax cut during this summer's budget process. Evers partially vetoed Republicans' reductions that would have focused relief on the state's wealthiest residents, but kept in place decreases for the state's lowest earners.

What's in the two different plans?

Evers called for a special session in August for lawmakers to consider his $1 billion plan, but Republican leaders instead referred it to a committee and said they would present their own plans.

Here's what Evers originally proposed:

• Putting $365 million toward child care programs, including funding to extend Child Care Counts payments to providers.

• Guaranteeing 12 weeks of paid family and medical leave for Wisconsin workers.

• Increasing general aid by $40 million for the Wisconsin Technical College System.

• Funding $17.3 million in need-based financial aid for college students over the next two years.

• Investing $66.4 million in the University of Wisconsin System, including funding UW-Madison's engineering building project.

• Allocating about $176 million toward programs to address shortages of teachers, nurses and other health care workers.

Republicans scrapped Evers' plan and introduced their own. Here's what their plan includes:

• Reducing the second-highest income tax rate from 5.3% to 4.4%. That applies to individuals earning $27,630 to $304,170 and for married couples earning $36,840 to $405,550.

• Expanding the state child and dependent tax credit and private school tuition tax deductions.

• Overhauling licensing in Wisconsin, including extending credential renewal periods.

• Using funding to assist unregulated child care providers in becoming certified or licensed.

• Creating apprenticeship grant programs for technical and tribal college students and people seeking a commercial driver's license.

• Adding requirements to unemployment programs, including specifying two of four work searches per week must be direct contacts with potential employers and jump-starting a drug test requirement.

More: Senate panel considers Evers' $1B child care, workforce proposal

More: Senate leader proposes to scrap Evers $1B child care plan, replacing it with $2B tax cut and expanded child care credit

Other child care bills not yet taken up in the Senate

The Assembly previously passed a slate of Republican-authored child care bills, which would loosen regulatory rules for providers and create loan and savings programs for centers and parents.

Those bills were not taken up in the Senate on Tuesday, where lawmakers spent hours debating a funding plan aimed at keeping the Milwaukee Brewers in Wisconsin.

Another bill introduced this month by Republicans, which has not yet received a hearing, would create tax incentives for businesses that operate a child care program for their employees' children.

Evers has previously indicated he would not sign those bills, citing concerns that the changes could reduce quality and safety and not provide immediate relief to families.

Republicans have rejected Evers' requests to extend Child Care Counts, a program that helped keep providers afloat through the pandemic. Evers in October funneled $170 million in "emergency funding" to keep the program operating at current levels through June 2025.

This article originally appeared on Milwaukee Journal Sentinel: Republicans' rewrite of workforce, child care plan heads to Evers