Gov. Tony Evers says vetoing state budget is 'on the table' after GOP action leaves $1.5B at risk

MADISON - Gov. Tony Evers left open the possibility of vetoing the entire state budget Republican lawmakers are crafting this summer after action last week left Wisconsin at risk of losing $1.5 billion in federal aid for schools.

“That’s too early to tell but that is always an option,” Evers said at a press conference at the Wisconsin State Capitol following an event marking the start of LGBTQ pride month. “That is on the table."

GOP lawmakers who control the Joint Finance Committee allocated $128 million in new state funds for K-12 schools in the 2021-'22 state budget, far below a spending threshold set by federal rules governing billions in federal pandemic aid being distributed to states under the American Rescue Plan Act.

Under the federal law, to qualify for the $1.5 billion in aid for schools, Wisconsin lawmakers must dedicate at least 35% of state spending on schools. 

Evers said the GOP's K-12 plan is "an insult to the kids of our state."

If Evers vetoed the entire state budget passed by lawmakers, current spending levels would continue or lawmakers could pass a new spending plan for Evers' consideration. 

In 2019, Evers used Wisconsin governors' broad line-item veto authority to reshape the spending plan and ended up increasing funding for schools using that power.  

Committee co-chairmen Rep. Mark Born and Sen. Howard Marklein said last week they are aware of the federal requirements but have not said how they will prevent Wisconsin from losing the funding.

Marklein declined to comment Tuesday and Born's office did not immediately respond to a request for comment.

At the same press conference, Evers also suggested he may veto legislation proposed by Republican lawmakers that would bar businesses from asking customers or employees to prove they have received a COVID-19 vaccination. The bill, Assembly Bill 299, will receive a public hearing on Wednesday.

“I think it’s a reasonable request of businesses to make those requests. If you’re a health care institution, you may want to ask those questions,” Evers said. “I do believe in some instances it’s a reasonable request so that’s my starting point. I’ll take a look at the bill when it’s finally put in front of me.”

Evers also pushed back against Republican arguments that the additional $300 in unemployment benefits distributed during the pandemic contributed to worker shortages.

"It's an issue I have seen no data on — none whatsoever," Evers said. "In addition, we had trouble finding people to come to work before the pandemic, during the pandemic, and after the pandemic so I think this is an issue around making sure we have the best quality of life in the state of Wisconsin so we actually encourage people to move here — I think those are things we need to take a look at. But I am concerned we are seeking a solution to a problem that may not exist."

Marklein and Assembly Speaker Robin Vos have introduced a bill that would stop paying the additional $300 per week in unemployment benefits, among other pandemic-related benefits. 

"The government needs to quit competing with our local employers. We need a reset here," Marklein said at a May press conference in the state Capitol. 

U.S. Sen. Tammy Baldwin, a Democrat from Madison, at Tuesday's press conference said she has seen "very little" to conclude that the enhanced pandemic benefits is a "leading factor" in worker shortages.