Wed Jul 02 02:10:00 UTC 2025: Okay, here’s a summary and a rewritten news article based on the provided text:
**Summary:**
Wisconsin’s Democratic Governor Tony Evers and Republican legislative leaders have reached a tentative agreement on key areas of the state’s budget, just before the start of the new fiscal year. The agreement covers Medicaid funding, special education, childcare, and the University of Wisconsin System. Key points include increased Medicaid funding (through hospital assessments), a boost in childcare spending, an increase in state coverage for special education costs, and significant funding for the UW System (reversing earlier proposed cuts). The deal also includes a $1.3 billion tax cut plan favored by Republicans. While the Governor retains veto power over other budget items, this agreement ensures he won’t veto items covered by it. The Joint Finance Committee is set to vote on the remaining budget items with the full Legislature voting soon after. However, the budget still faces hurdles as some Republican senators have expressed potential opposition.
**News Article:**
**Wisconsin Leaders Reach Tentative Budget Deal, Averting Fiscal Crisis**
**MADISON, WI –** In a last-minute agreement, Wisconsin Governor Tony Evers and Republican legislative leaders announced a tentative deal on crucial aspects of the state budget, averting a potential fiscal stalemate just hours before the new fiscal year began on July 1. The agreement addresses funding for Medicaid, special education, childcare, and the University of Wisconsin System.
The deal represents a significant compromise, including elements favored by both parties. Republicans secured a $1.3 billion tax cut plan, expanding the state’s second-lowest tax bracket, exempting some retirement income from taxation, eliminating the residential utilities sales tax and creating a film tax credit capped at $5 million per year. Governor Evers achieved his goal of increased Medicaid funding through an increase in the percentage of net patient revenue hospitals pay to the state Department of Health Services, and a $300 million boost for childcare with $110 million directed to providers.
Other key provisions include increasing the state’s coverage of special education costs from 32% to 45% in the second year of the budget. The University of Wisconsin System will receive a substantial $256 million funding increase over the next two years, reversing previously proposed cuts. The money will go to employee pay raises, virtual mental health services for students, recruitment and retention of faculty, and stabilizating campuses.
“The people of Wisconsin expect their leaders to show up, work hard, and operate in good faith to get good things done,” said Governor Evers in a statement. “We’ve shown we’ve been able to get good things done for Wisconsin when people put politics aside and decide to work together to do the right thing.”
Assembly Speaker Robin Vos, R-Rochester, echoed the sentiment, stating, “This budget delivers on our two biggest priorities: tax relief for Wisconsin and reforms to make government more accountable. This deal brings those investments and reforms together and creates a Wisconsin that works for everyone.”
While the agreement covers key areas, the Governor retains veto power over the remaining portions of the budget. The Joint Finance Committee is scheduled to vote on the remaining items today (July 1), with a full legislative vote expected as early as tomorrow (July 2).
The agreement is not without its challenges. Republicans hold a slim majority in the Senate, and at least three Republican senators have expressed reservations about the budget. According to a spokeswoman for Senate Minority Leader Dianne Hesselbein, D-Middleton, Hesselbein expects to have the votes needed from her party. This means Democratic support will be needed if more than one Republican senator decides to vote against the budget plan.
The Joint Finance Committee plans to move forward with closing Green Bay Correctional Institution by 2029.
The coming days will be crucial as lawmakers finalize the budget and determine the direction of Wisconsin’s spending priorities for the next two years.
First Piper 