FILE - Wisconsin Gov. Tony Evers gives the annual State of the State address, Jan. 22, 2025, at the state Capitol in Madison, Wis. (AP Photo/Morry Gash, File)

MADISON, Wis. (AP) — Wisconsin Gov. Tony Evers signed a new two-year budget in the early morning hours Thursday in a race against Congress to ensure the state gets a federal Medicaid match that it would lose under President Donald Trump's tax and spending cuts package.

In an extraordinarily rapid succession of events, Evers and Republican lawmakers unveiled a compromise budget deal on Tuesday, the Senate passed it Wednesday night and just before 1 a.m. on Thursday, the Assembly passed it. Evers signed it in his conference room minutes later.

Democrats who voted against the $111 billion spending bill said it didn't go far enough in meeting their priorities of increasing funding for schools, child care and expanding Medicaid. Evers, who hasn't decided on whether he will seek a third term, hailed the compromise as the best deal that could be reached.

“I believe most Wisconsinites would say that compromise is a good thing because that is how government is supposed to work,” Evers said.

Wisconsin’s budget would affect nearly every person in the battleground state. Income taxes would be cut for working people and retirees by $1.4 billion, sales taxes would be eliminated on residential electric bills, and it would cost more to get a driver’s license, buy license plates and title a vehicle.

Unprecedented speed

There was urgency to pass the budget because of one part that increases an assessment on hospitals to help fund the state’s Medicaid program and hospital provider payments. Medicaid cuts up for final approval this week in Congress cap how much states can get from the federal government through those fees.

The budget would increase Wisconsin’s assessment rate from 1.8% to the federal maximum of 6% to access federal matching funds. But if the federal bill is enacted first, Wisconsin could not raise the fee, putting $1.5 billion in funding for rural hospitals at risk.

In the rush to get done, Republicans took the highly unusual move of bringing the budget up for votes on the same day. In at least the past 50 years, the budget has never passed both houses on the same day.

“We need to get this thing done today so we have the opportunity to access federal funding,” Republican Assembly Speaker Robin Vos said at the start of debate just before 8 p.m. Wednesday.

Governors typically take several days to review and sign the budget after it’s passed, but Evers took just minutes.

Bipartisan compromise

In a concession to the Democratic governor, Republicans agreed to spend more money on special education services in K-12 schools, subsidize child care costs and give the Universities of Wisconsin its biggest increase in nearly two decades. The plan would likely result in higher property taxes in many school districts due to no increase in general aid to pay for operations.

Republicans needed Democratic votes

The Senate passed the budget 19-14, with five Democrats joining with 14 Republicans to approve it. Four Republicans joined 10 Democrats in voting no. The Assembly passed it 59-39 with six Democrats in support. One Republican voted against it.

Democratic senators were brought into budget negotiations in the final days to secure enough votes to pass it.

“It’s a bipartisan deal,” Senate Minority Leader Dianne Hesselbein said before the vote. “I think everybody left the table wishing it was different, but this is something everyone has agreed on.”

Democrats said newly drawn legislative maps, which helped them pick up seats in November and narrow the Republican majorities, led to greater compromise this year.

“That gave us leverage, that gave us an opportunity to have a conversation,” Democratic Sen. Mark Spreitzer said.

Still, Spreitzer said the budget “fell far short of what was needed on our priorities.” He and other Democrats said it didn’t go far enough to help fund child care, K-12 schools and higher education, in particular.

Evers vetoes prison closure deadline

The budget called for closing a troubled aging prison in Green Bay by 2029, but Evers used his partial veto to strike that provision. He left $15 million in to support the closure, but objected to setting a date without a clear plan for getting it done.

The governor noted in his veto message that the state has “painful experience” with trying to close prisons without a fleshed-out plan, highlighting that the state's youth prison remains open even though lawmakers passed a bill to close the facility in 2017.

“Green Bay Correctional Institution should close — on that much, the Legislature and I agree,” Evers wrote. “It is simply not responsible or tenable to require doing so by a deadline absent a plan to actually accomplish that goal by the timeline set.”

Jim Rafter, president of the village of Allouez, the suburb where the prison is, issued a statement Friday saying the veto shows how broken the state government has become.

“The time for studying has come and gone,” he said. “The Village of Allouez and our community demand action and the certainty they deserve about when this facility will be closed.”

Governor kills grant as payback for ending stewardship

Evers used his partial veto powers to wipe out provisions in the budget that would have handed the town of Norway in southeastern Wisconsin an annual $100,000 grant to control water runoff from State Highway 36. The governor said in his veto message that he eliminated the grant because Republicans refused to extend the Warren Knowles-Gaylord Nelson Stewardship Program.

That program provides funding for the state and outside groups to buy land for conservation and recreation. Republicans have complained for years that the program is too expensive and removes too much land from property tax rolls, hurting municipalities. Funding is set to expire next year. Evers proposed allocating $1 billion to extend the program for another decade, but Republicans eliminated the provision.

Evers accused legislators in his veto message of abandoning their responsibility to continue the program while using the runoff grant to help “the politically connected few.” He did not elaborate.

The town of Norway lies within state Rep. Chuck Wichgers’ and Sen. Julian Bradley's districts; both are Republicans. Bradley, who sits on the Legislature's powerful budget-writing committee, called the veto “nothing more than political retribution.” Wichgers didn't return a voicemail.

Rep. Tony Kurtz and Sen. Pat Testin, both Republicans, introduced a bill last month that would extend the stewardship program through mid-2030, but the measure has yet to get a hearing.

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Associated Press writer Todd Richmond contributed to this report.

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