Analysis finds failed surplus deal would’ve sent state budget into red

MADISON, Wis. (WRN) — Analysis finds last week’s failed surplus deal would’ve sent Wisconsin’s budget into the red.

A memo from the Legislature’s Fiscal Bureau shows the proposed deal — brokered by Governor Tony Evers and Republican leaders — would have added roughly three‑and‑a‑half billion dollars in spending over four years. Combined with existing commitments, the state would have faced an estimated $2.95 billion deficit, assuming no changes in revenue.

The $1.8 billion package included tax rebate checks, more general state aid for schools, increased special education funding, and eliminating income tax on overtime and tips. The deal collapsed in the Senate last week, with Democrats — and some Republicans — warning it cost too much.

Policy analysts say the impact would have made the next budget significantly tougher to balance, though not impossible. Backers argue rising tax revenues could have offset the hit.