Governor Evers Wants to Divert Some of State's Sales Tax Revenue to Help Fund Local Communities

Thursday, January 26th, 2023 -- 10:01 AM

(AP) Democratic Gov. Tony Evers announced Tuesday he wants to work with Republicans to divert as much as 20% of the state’s sales tax revenue to help fund local communities, including police and emergency services, while he also promised to cut taxes for the middle class and fight a GOP effort to impose a flat income tax rate.

Evers, in his fifth State of the State speech and the first of his second term, pledged to compromise with Republicans who control the Wisconsin Legislature in order to increase funding for schools and local governments.

All of the spending proposals Evers announced, which totaled more than $1 billion, will be in competition for a state budget surplus that is projected to be near $7 billion. Republicans discounted much of what Evers proposed as being too expensive.

Evers said changing how local governments are funded by tying so-called shared revenue to sales tax revenue will ensure payments increase after decades of little growth or cuts. Evers said his plan would direct more than $500 million per year to local governments.

Evers previously called for a 4% increase in shared revenue funding for each of the next two years, a total of about $91 million. Evers appeared to be supportive of a plan Republican legislative leaders have discussed that would use 1 percentage point, or 20%, of the state’s 5% sales tax for shared revenue.

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