Following up on the recently-released Census estimates of state and US population for 2025, that also means we are halfway between the 2020 Census and 2030’s Census. So why not project forward to what this may mean for the membership of Congress and the Electoral College after that 2030 Census, and the maps get redrawn. The American Redistricting Project went with the 2022-2025 post-COVID population trends to see what states were on track to add or lose members of the House of Representatives as well as Electoral College votes.
As you can see, Wisconsin is among the states that would lose members of the House.
Yes, I find it ironic that the GOP-led states of Florida and Texas would grab more seats in Congress in no small part because of high levels of immigration in their states, no matter how much their GOP overlords pose against it (but funny, ICE isn't overrunning their states, are they?). I also note that this projection shows that Dems can’t win the White House in 2032 merely by getting back the Blue Wall states of Wisconsin, Michigan and Pennsylvania, and having everything else be the same.
I want to center on the Wisconsin situation in particular, as we are pretty close to the threshold where we could hold onto our 8th seat in the House.
So if we gain people at a faster rate than Michigan or don’t lose as much ground to Texas or Georgia in the next 2 years, maybe we stay at 8 seats. But if we don’t, then it would add even more importance to redistricting here for 2031, because some member of Congress is losing his/her seat regardless of the result of elections.
I took a crack at what that might look like, if we were trying to make a relatively even 7-member map in Wisconsin. Here’s what it looks like.
And I’m going to use two races to see what the partisanship of these districts might be. I’ll use the 2022 Governor’s race (Dems win by 3.5%) and 2024 Presidential race (GOP wins by 0.9%) as baselines to see who would be favored in these districts, and by how much.
2022 Governor race
2024 Presidential race
I can probably do some more manipulations to make it even closer to level (either moving District 1 more into Milwaukee or moving District 3 into Dane County), but this is a good start. 2 Dem districts, 2 GOP districts, and 3 districts that lean GOP in various amounts, but are definitely flippable for Dems.
January's release from the Census Bureau only had state population. We will find out later this year how population has changed inside of Wisconsin, and which counties and communities of our state are growing faster than others, along with the ones that are losing people. That's also a key factor in what happens for districts at both the Congressional and statehouse level, and we can see if the COVID-era trends that encouraged more people to move up North in this state are still happening, or if people are heading back to metro areas, and where in metro areas are they going to.
Also remember that Wisconsin Republicans have 6 seats in the House today as a result of their 2012 and 2022 gerrymanders. So in any 7-district scenario, they are likely to have 1 fewer GOP seat than today, and possibly 2 or 3. So maybe our GOP members of Congress should be going out of their way to encourage more migration to our state (both from inside and outside the country), and making sure that every Wisconsin resident gets counted in 2030. Because the job they save could well be their own.
Jake's Wisconsin Funhouse
Ventings from a guy with an unhealthy interest in budgets, policy, the dismal science, life in the Upper Midwest, and brilliant beverages.
Saturday, January 31, 2026
Wis losing a seat in Congress? That's what we're on track for as of now
Thursday, January 29, 2026
Wis population grows again in 2025, but both state and US growth is slowing down
After some delay due to this Fall's government shutdown, we finally got new Census estimates for 2025 in this week, both for the nation and for individual states.
Overall, US population growth was nearly cut in half last year, largely due to the Trump/Stephen Miller Administration’s racism action against immigrants and immigration.
Ind. +186,728
Minn +123,742
Ohio +101,065
Wis. +78,464
Mich +48,522
Iowa +47,805
Ill. -102,600 % Change in population 2020-2025
Ind. +2.75%
Minn +2.17%
Iowa +1.50%
Wis. +1.33%
Ohio +0.86%
Mich +0.48%
Ill. -0.80% I'll take the positive net migration and overall population growth as good signs for this state, especially as we go through a week where the temperature has been below zero every night and the high temps haven't gotten above 15. And if we keep on adding 15,000-27,000 people a year, as we have in the last 4 years, we will break 6 million for total population by 2027. Nationally, we can see where the Trumpian limitations on immigration was already having an effect on the country's population growth by mid-2025, and that's going to limit the amount of job and consumer spending growth that we can get (conversely, it also explains why our tiny job growth might not spike unemployment as much as it would have before 2025). So one of the big engines of our surprisingly large post-COVID job and GDP growth is going away, and once the Bubbles pop, it doesn't seem like there will be much on the demographic side to make up for it.
· Between July 1, 2024, and July 1, 2025, the U.S. population grew by 1.8 million (or 0.5%) to reach 341.8 million. · The U.S. population grew at a much slower rate between July 2024 and July 2025 than from 2023 to 2024 (when it increased by 1.0%, or 3.2 million people). The slowdown is largely due to lower levels of net international migration. · Between July 1, 2024, and June 30, 2025, net international migration was 1.3 million, a notable drop from 2.7 million the year before (a decline of 53.8%). If current trends continue, net international migration is projected to be approximately 321,000 by July 2026, representing another decline of nearly 1 million since July 1, 2025.Fun fact - you know which states had the highest growth from international migration in late ‘24-early ‘25? Florida (+178,674) and Texas (+167,475)! And immigrants accounted for over 90% of Florida’s population growth in the last year! So why isn’t TrumpWorld sending ICE all over those places…..? While a lot of the trends of more Americans moving south continued in late 2024 and early 2025, I’ll note that our part of the country is also growing and attracting people from other parts of America. And we didn’t have our population growth drop off as much as other regions last year.
The Midwest was the only region where all states gained population from July 2024 to July 2025. In addition, after experiencing population decline in 2021 and small growth in 2022, the Midwest’s population grew solidly in 2023 (259,938), 2024 (386,231), and 2025 (244,385). Slight gains in natural change (births minus deaths) for some of the states in the Midwest contributed to their population growth. “From July 2024 through June 2025, the Midwest also saw positive net domestic migration for the first time this decade,” said Marc Perry, senior demographer at the Census Bureau. “And while the net domestic migration was a relatively modest 16,000, this is still a notable turnaround from the substantial domestic migration losses in 2021 and 2022 of -175,000 or greater.”Wisconsin was a part of this trend of positive domestic migration for 2025 (+6,984), and continued with to have its population go up overall (+15,619). However, we also had a slowdown in population growth, as that's lower than the 27,000+ we added in 2023 and 2024. It places us in the bottom half of our Midwestern neighbors for growth, although we were not a huge laggard for the region as a whole. (I define the “Midwest” as the 7 states of the pre-1993 Big Ten. The Census Bureau may define it a bit differently and widely). Since the last Census in 2020, Wisconsin has added 78,464 to our population (+1.33%), a number that places us smack dab in the middle for the Midwest, both in terms of amount and rate. Change in population 2020-2025
Ind. +186,728
Minn +123,742
Ohio +101,065
Wis. +78,464
Mich +48,522
Iowa +47,805
Ill. -102,600 % Change in population 2020-2025
Ind. +2.75%
Minn +2.17%
Iowa +1.50%
Wis. +1.33%
Ohio +0.86%
Mich +0.48%
Ill. -0.80% I'll take the positive net migration and overall population growth as good signs for this state, especially as we go through a week where the temperature has been below zero every night and the high temps haven't gotten above 15. And if we keep on adding 15,000-27,000 people a year, as we have in the last 4 years, we will break 6 million for total population by 2027. Nationally, we can see where the Trumpian limitations on immigration was already having an effect on the country's population growth by mid-2025, and that's going to limit the amount of job and consumer spending growth that we can get (conversely, it also explains why our tiny job growth might not spike unemployment as much as it would have before 2025). So one of the big engines of our surprisingly large post-COVID job and GDP growth is going away, and once the Bubbles pop, it doesn't seem like there will be much on the demographic side to make up for it.
Monday, January 26, 2026
Ignore that rising property tax bill, because Wisconsin's tax burden is the lowest in decades!
Here's a recent report from the Wisconsin Policy Forum with a conclusion that may be surprising to you. Wisconsinites are currently enjoying their lowest tax burden on record.
Wisconsin residents in fiscal year 2025 paid 9.60% of what they receive from all income sources in state and local taxes, matching 2024’s record low to remain at the lowest total burden in our data going back to the 1970’s. Figure 1 shows the long-term decline, which began the mid-1980s and became notably more consistent since 2010, as state leaders took more aggressive efforts to reduce the tax burden, and incomes grew after the painful years of the Great Recession. While the tax burden fell, overall state and local taxes grew by 5.0% in fiscal 2025 to $38.8 billion, among the largest single-year jumps in the last 20 years. However, statewide personal income growth matched that rate, also rising by 5.0% in 2025.Remember that "tax burden" isn't the amount of taxes you pay, but how that compares to your income. It's also worth noting that the state tax burden went down, but the rise in property taxes and new sales taxes in the state's largest city made the local tax burden go up.
State tax revenue, including income and sales taxes, climbed 4.2%, above the annual average growth of 3.1% for the past 20 years. However, because the income of state residents and businesses grew more rapidly, state taxes hit another record low in 2025, dropping from 6.41% to 6.36%. Local tax revenue grew by 6.4%, the most since 2005, and nearly triple the 2.4% average annual rate of increase during that same time period. Net property taxes helped drive that increase, growing by 4.6%, or $518.1 million. Big bumps in local sales tax collections, which grew by 12.2% or $76.5 million, plus the addition of $169.3 million from the new city of Milwaukee sales tax, were also major contributors. Overall, the local tax burden climbed just slightly, from 3.19% to 3.24%.The local tax change is quite variable for 2025, depending on whether your school district had a referendum (raises hand in Madison), or in how much money you spent in Milwaukee (and yes, your Brewer tickets are part of that extra sales tax), or if your community added or increased their wheel taxes. But the Wisconsin Department of Transportation didn't see revenue increases to the level of income, sales, or local taxes, as 2025 was another year where WisDOT revenues didn't keep up with inflation.
Gas tax collections grew by 1.5% in 2025 to $1.12 billion after falling slightly the two previous years, while fees collected for registering vehicles grew by 0.6% to $937.8 million. Driver license fees saw the fastest rise, up 5.8% to $42.1 million, matching their all-time high in 2009. Increased demand for new licenses may be due to federal requirements for REAL ID compliant documents when boarding airplanes. The state’s limo rental fee, the smallest transportation revenue we track, grew by 7.1%, to $13.8 million.Put it together, and overall transportation revenues only rose by 1.2% last year, well below the increase in costs. Which helps to explain why the current state budget is sending neatly $748 million into the Transportation Fund to help pay for WisDOT's projects and services, as gas taxes and registration fees are not able to get the jobs done. And that's a hole in the budget that the next Governor is going to have to deal with sooner than later. I would expect this tax burden stat to be even lower next year, as income tax cuts signed in the budget start to show up in higher tax refunds over the next few months, and there won't be the one-time increase in local sales taxes, since last year was the first year Milwaukee had its new sales tax. But the question is whether this is leaving us in a better situation, either through the lower investments in community schools or through the pass-down of taxes from the state to the local level, like when the WisGOP Legislature refused to add General Aids to K-12 schools and we ended up with the largest K-12 property tax increase in decades. Which is a big reason why we should consider using our $2.5 billion surplus to use some state tax dollars to lower those property taxes, and start rebalancing a Wisconsin tax burden that's in need of adjustment.
Sunday, January 25, 2026
Wisconsin Medicaid could go $1 billion in the hole, as Trump Admin double-crosses Van Orden and state
I know the events of this screwy country make a week seem like a month, but do you remember this thing from last Summer?
divert more money for ICE thugs disallow this extra Federal funding from Wisconsin's hosptial assessment, and combine it with the $213 million projected deficit in Medicaid, and that's over $1 billion that goes away from the state's $2.5 billion surplus. And that could sink the chances of using that surplus for property tax relief (or a one-time property tax rebate, as I'd argue for).
But don't worry, those tax cuts for the rich will trickle down any day now to everyday people instead of going to stock buybacks and other paper-trading, so why would you care if the Trump Admin screws over people in their medical care and helps to keep your property taxes high?
This led the Wisconsin Legislature and Governor Evers to play "beat the clock" with the state budget, with Evers signing it in the early morning hours of July 3, barely beating Trump/GOP's Big Bill of Bollocks into becoming law, as the Big Bill of Bollocks cut off any of these sort of enhanced Federal match rates for hospitals to limit the cost of the bill (while adding tens of billions a year to ICE at the same time). Well, it turns out that the presidential Administration that Small-D VO stands with may screw over the state in the strategy that Van Orden told the state to take. And Western Wisconsin Democrats recently sent a letter to Van Orden asking him to try to get the Trump Administration from taking away hundreds of millions of dollars from the state.You have got to be kidding me. Republican Rep. Derrick Van Orden of Wisconsin wrote a letter urging his state’s Democratic governor to take steps to protect rural hospitals from the fallout of Republicans’ widely reviled budget bill — which Van Orden voted for. www.msnbc.com/top-stories/...
— Dizzygirl (@dizzygirl.bsky.social) July 4, 2025 at 11:59 AM
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On July 2nd, 2025 you sent a letter to Governor Evers regarding the state’s biennial budget stating: “As you are aware, timely enactment is especially critical this year due to the proposed increase in the state provider tax, which must be effectuated before the anticipated signing of the One, Big, Beautiful Bill on or around July 4, 2025.” You further stated “Wisconsin will immediately receive a $500,000,000 plus up for rural healthcare infrastructure, and an additional billion dollars annually for healthcare in our great state.” As you know, the Wisconsin state budget was passed by the State Senate and State Assembly on July 2nd, 2025, and was signed into law on July 3rd, 2025, before the signing of the One, Big, Beautiful Bill which was signed on July 4th, 2025. Unfortunately, the Trump administration is currently moving forward with an unprecedented action to deny Wisconsin’s ability to draw down the additional promised hospital assessment dollars, which will cost our state nearly $800 million every biennium. Our hospitals, and especially our rural hospitals were counting on that funding to keep their doors open. This increased funding is needed to help hospitals sustain and expand access to care for patients across Wisconsin when one-third of the state’s hospitals are operating at a deficit, driven by $1.6 billion in losses from Medicaid reimbursement. At a time when our medical institutions are facing unprecedented financial challenges, we must do everything we can to ensure their ability to continue to operate. Our state budget was counting on it, and our constituents’ lives literally depend on it. We implore you to do everything in your power to reverse these catastrophic decisions.If the Trump Administration were to reverse themselves and disallow the added hospital assessment, it would not only likely lead to more hospitals in the state to close, but it would add expenses to a Wisconsin Medicaid budget that was already running at a deficit. Because at the start of this month, the state's Department of Health Services said that state tax dollars going into these medical care programs was on track to go over what was budgeted.
Since our previous quarterly report, the Department has another quarter of enrollment and cost experience data and has completed Calendar Year 2026 capitation rate setting for Medicaid acute and long-term managed care programs. Based on this additional information, the Department projects expenditures will exceed available budget by $213.2 million GPR by the end of the biennium, which is 2.2% above budgeted levels under 2025 Act 15, the 2025-27 biennial budget. Several factors are contributing to the projected deficit. The Act 15 Medicaid budget adopted lower Family Care and Family Care Partnership enrollment growth trends than the Department recommended during budget development. The actual enrollment trend so far this biennium suggests program enrollment will be even higher than the Department anticipated prior to passage of Act 15. This quarterly projection assumes that by FY 27, MCO enrollment will be 3.4% higher than Act 15 provided. At the same time, the Department has now finalized Family Care managed care organization (MCO) capitation rates for CY 26, which overall are more favorable than budget, and which partially offset the higher enrollment costs. The net biennial impact is an expected $45 million GPR deficit for these services. In addition, fee for service nursing home expenditures and Children’s Long Term Supports (CLTS) program costs are significantly higher than budget due to higher-than-projected utilization, adding $59 million GPR and $38 million GPR to the deficit, respectively.The report goes on to note that despite lower-than-expected enrollment in BadgerCare Plus and SSI managed care services in Wisconsin, costs for items like prescription drugs and substance abuse/mental health services are also running higher, so the state will likely have to tap into its $2.5 billion surplus to take care of the Medicaid deficit before the budget cycle ends on June 30, 2027. So if the Trump Administration decides to
Thursday, January 22, 2026
Income and spending was same-old, same-old last Fall. But savings kept falling
Even with the job losses and other disruptions from the Fall’s government shutdown, apparently there wasn’t much change for the consumer spending side of the economy vs what we had in the Summer. gouging re-setting of prices by businesses. Doesn’t seem that great.
But I guess as long as people keep the money moving and mass layoffs keep getting avoided, the economy will keep growing. No matter how weak the fundamentals are or how much closer to the edge normal working people keep getting.
Consumers continued to ramp up their spending as the holiday shopping season revved up in November, but high prices continued to bite, new data showed Thursday. A shutdown-delayed report from the Commerce Department showed that spending rose 0.5% from October, an increase that was above economists’ expectations for a 0.4% gain. When adjusted for inflation, consumer spending rose 0.3%. The report also showed that inflation remained stubbornly higher than normal, according to the shutdown-delayed report that also included previously unreleased data for October.But that consumer spending number isn’t adjusted for inflation, so real spending went up by 0.3% in each of those months – still solid, but not booming either. But inflation is still running at a 12-month increase of 2.8% in this report (if you buy that food prices slightly declined in October and November. Why are you laughing?). That’s not really any different than the PCE index was rising during the election in November 2024, when we were told prices were rising at an unacceptable rate. Another trend that continued with this report was income growth staying soft, only up by 0.1% in October and 0.3% in November. And for much of 2025, work income has grown at lower amounts than we saw in 2024. ` Which means that personal savings continued to fall through November of last year, down by nearly $479 billion on an annual basis compared to where we were in April, and dropping the savings rate to 3.5% - the lowest in more than 3 years. And this is before the jump in health insurance premiums hit in January, along with other year-start
Wednesday, January 21, 2026
In most areas, construction and housing were struggling in late 2025
We continue to get economic reports that were backlogged from the government shutdown that ended more than 2 months ago. This one shows what seems to be a strong report for new construction in America for October, until you look closer at the details.
U.S. construction spending increased more than expected in October, likely reflecting home renovations, with activity elsewhere weak. The Commerce Department's Census Bureau said on Wednesday that construction spending rose 0.5% after falling 0.6% in September. Economists polled by Reuters had forecast construction spending gaining 0.1% in October. Spending dropped 1.0% year-on-year in October…. Investment in residential construction shot up 1.3% after slumping 1.4% in September. That was despite a 1.3% drop in spending on new single-family housing projects. Spending on multi-family housing units, which account for a small share of the housing market, slipped 0.2%. With both single- and multi-family housing projects falling, the increase in residential outlays was likely because of renovations. Homebuilding has been hamstrung by higher mortgage rates, more expensive building materials because of tariffs on imports as well as labor shortages.In fact, improvements and other residential construction nearly outpaced the amount of new construction of single-family homes in October. Single-family home construction is down nearly 8% since Feburary, and the value of multi-family homes was lower than it was at the start of this year. Non-residential construction has also been skidding, with private non-residential construction seeing declines for 4 straight months, and down 6.8% since the end of 2023. But yet the overall amount of new construction allegedly grew in October because of improvements and add-ons to current homes. Still doesn't seem like the sector was in good health at that time. The mortgage market has picked up recently, after the Trump Administration’s move from 2 weeks ago where they decided to buy $200 billion in mortgage debt. However, it’s not because more homes are being sold.
Last week, applications to refinance a home loan rose 20% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications were 183% higher than the same week one year ago. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.16% from 6.18%, with points falling to 0.54 from 0.56, including the origination fee, for loans with a 20% down payment. That is the lowest rate since September 2024.Good news if you bought a house in the last 3 years, but still not a level that many of us would refinance at. And the recent boost in that refi activity seems likely to end soon.
Interest rates moved much higher to start this week, as bond markets sold off following the Trump’s threats of new tariffs and escalating tensions over Greenland. The average rate on the 30-year fixed jumped 14 basis points higher, according to a separate survey from Mortgage News Daily. “This matches the level seen the day before the announcement of the administration’s $200 billion mortgage bond buying plans. The last time rates were higher was December 23rd,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “In light of that announcement, why aren’t mortgage rates doing better? Simply put, the market has already reacted to that news to the extent allowed by its transparency.”So the Trump Admin has pumped in more money to the economy (an inflationary move), and caused some capital flight due to his demented ramblings on Greenland and other foreign countries, which raises interest rates and counteracts the goals of buying up the $200 billion in mortgage bonds. That’s the type of “businessman brilliance” those low-infos voted for in November 2024, isn’t it? We got some data today that may show why the Trump Admin felt a need to pump up the housing market. Because 2024 ended with a significant drop of Americans signing contracts to buy houses.
Stagnant mortgage rates, falling housing supply and ongoing economic uncertainty weighed heavily on homebuyers in December. Pending home sales, a measure of signed contracts on existing homes, dropped 9.3% last month from November, according to the National Association of Realtors. Analysts were expecting a slight gain. Sales were 3% lower than December 2024…. Sales fell month to month in all regions of U.S. and were higher annually only in the South. Homes also stayed on the market longer in December, at an average of 39 days compared with 35 days in December 2024.So it appears the construction sector and the housing market were two more major parts of our economy that were being held up by odd, temporary moves at the end of 2024. I don’t see how those bumps show an improving overall trajectory, and it may well make things worse as the blips of remodelings and Treasury injections to lower interests rates unwind in the coming months. And all of this happy talk that I see people trying to pull on the economy isn’t something that seems to be connected to the reality and the data that we see in the everyday economy that people with actual jobs and lives have to deal with.
Thursday, January 15, 2026
Big revenue boost allows for property tax relief in Wis. Now how do you do it?
Governor Evers recently had interviews with state media to mark the start of his last year in office. And those discussions included some surprising budget news, and a plan to deal with it.
Gov. Tony Evers said state revenues for 2025-27 are on track to come in as much as $1 billion higher than previously projected — and he wants lawmakers to use the additional funds to drive down property taxes. The Dem governor, in his last year of office, called on lawmakers to approve the $1.3 billion in property tax relief he included in the 2025-27 budget that Republicans rejected. Still, he told reporters he was open to any approach that would help homeowners….. Evers’ budget called for a series of steps to lower property taxes, from putting more state money into public education to supplemental aid for local governments. The new call, which wouldn’t impact homeowners until they receive their bills in December, was one of several pushes Evers made for lawmakers to spend money the state either has in reserves or is expected to take in. The 2025-27 budget he signed was projected to have a gross balance of $770 million at the end of the biennium. His ideas range from putting more money into special education reimbursement to approving various sales tax breaks Evers proposed in the budget, such as exempting adult diapers and breast pumps.Turns out that Evers' prediction was selling things short, as on Thursday the Legislative Fiscal Bureau released their updated revenue estimates for the rest of the 2025-27 biennium.
Based upon our analysis, we project the closing, net general fund balance at the end of this biennium (June 30, 2027) to be $2,373.5 million. This is $1,529.0 million above the net balance that was projected at the time of enactment of the 2025-27 biennial budget, as modified to: (1) incorporate the 2024-25 ending balance (2025-26 opening balance) as shown in the Annual Fiscal Report; (2) include the fiscal effect of all legislation enacted to date in the current legislative session (2025 Acts 1 to 82); and (3) include the estimated fiscal effects of the following general fund tax law changes that were automatically adopted by, or altered estimated tax collections for, the state after enactment of the federal P.L. 119-21, the One Big Beautiful Bill Act (OBBBA): (a) the credit percentage for the child and dependent care expense credit; (b) Section 179 expensing provisions; (c) the federal limit for itemized deductions of state and local taxes; (d) reporting requirements for de minimus payments by third-party settlement organizations; (e) health savings accounts; (f) the qualified small business stock exclusion; (g) eligible expenses made from college savings accounts; (h) eligible rollovers to ABLE accounts from college savings accounts; and (i) the repeal of the deduction for energy efficient buildings. The $1,529.0 million is the net result of: (1) an increase of $1,367.1 million in estimated tax collections; (2) an increase of $104.0 million in departmental revenues (non-tax receipts deposited in the general fund); (3) an increase of $49.9 million in sum sufficient appropriations; and (4) an increase of $107.8 million in the amounts that are estimated to lapse (revert) to the general fund.And that's with the LFB adding in the $115 million that by law has to be set aside. Add that in, and it's nearly $2.5 billion that's projected in the bank, which is more than 3 times vs what was a relatively small cushion that was built into the budget when it became law back in July. So why did LFB say things were looking so good? Income taxes are one major reason.
Total collections for 2025-26 are estimated at $10,330 million, which is $455.7 million (4.6%) higher than the previous estimates. One factor that is expected to help revenues over the rest of 2025- 26 is the projected high level of capital gains realizations for tax year 2025. [Realizations for tax year 2026 are also expected to be significant, though not as high as tax years 2024 or 2025]. Additionally, the year-to-date withholding growth for 2025-26 (5.7%) is higher than had been anticipated. Total individual income tax revenues for 2026-27 are projected to increase by 3.2% year-over- year, to a total of $10,665 million. Relative to the previous estimates, these figures are higher by $311.9 million (3.0%). Major contributing factors to this increase include an improved forecast for wages and salaries, which impacts withholding collections, and a higher forecast for capital gains.In addition, the LFB says that corporate taxes are projected to be $583 million above what was budgeted, as corporate profits continue to hit new records and are projected to keep growing over the next 18 months.But one warning I'd give is that the $700 million in income tax cuts that were part of the budget are going to show us as larger state tax refunds in the next 3 months. That's a significant unknown which could change those total revenues when Fiscal Year 2026 closes on June 30, for better or worse. But part of the reason Evers isn't willing to wait for tax season to verify the larger revenues before he asks the Legislature to use that money for property tax relief is that the GOP-led State Legislature will go on their 10 month paid vacation in the next 6-8 weeks or so, before tax season ends. Not surprisingly, the GOP-led State Legislature has different ideas on how to limit or cut property taxes, starting with Assembly Speaker Robbin’ Vos.
Republicans are pushing SB 389/AB 391, which would end that per pupil increase after the 2026-27 school year, and it cleared an Assembly committee last week. “So hopefully he would work with us to say, assuming we do property tax relief, we can’t just keep putting more water into a bucket full of holes. We need to fill the holes and then make sure that the bucket has the ability to deliver the relief,” Vos said.What “bucket” is Robbin’ talking about? Is he saying he wants to leak out funding to schools by cutting property taxes? If so, I guess that hacky metaphor makes sense, but I’m not thinking the average Wisconsin voter is down with cutting even more resources to public schools in their community. The Senate has already passed this bill during the current session, and the GOP Leader in that house threw in his own talking points on the situation.
“Now that everyday people are feeling the impact of his 400-year mistake, Governor Evers is desperately trying to pass the buck,” said Senate Majority Leader Devin LeMahieu, R-Oostburg. “If the governor really cared about lowering property taxes, he would sign our proposal to eliminate the automatic 400-year property tax increase he unilaterally created.”Congrats, Devin LeMahieu! You are the new contestant on the game show “GOP, LYING or STUPID??” For the God-knows-how-many-ith time, the only reason we have a property tax increase for schools is because the GOP refused to put state aid into the schools. The $325-per-student increase in revenue limit is for a combined total of state general aids and property taxes. And the GOP chose to pass a budget that ended up cutting state general aids for nearly 3/4 of the state’s districts for this school year. Hence…higher property taxes. Not surprisingly, the failure of the WisGOP Legislature to have the state pay its share resulted in the largest increase in K-12 property taxes in Wisconsin in decades, as the Wisconsin Policy Forum reminded us in December. The easiest solution to all of this isn’t something either Evers or Vos/LeMahieu have brought up. Why not just back $400 to each tax filer in Wisconsin as a property tax/rent rebate, which they will get by June of this year. Last month, I estimated a doubling of the Property Tax and Renter's Credit from $300 to $600 would cost around $255 million, so a $400 rebate would be maybe $340 million? That seems to play it cautiously enough so that if the $1.4 billion in extra revenue becomes more like $700 million, we wouldn't risk a situation where the new Governor would have to fix a potential deficit as he/she comes into office. The Wisconsin DOR should have the names of all of those who filed state taxes and took the Property Tax/Renter’s Credit, so the check would go out to everyone who claims it for this year. And it would be something that can be felt by Wisconsinites long before property tax bills come out in December (and before the 2026 elections, if that matters….and it sure should if you’re a WisGOP that’s already in big danger of losing your ill-gotten majorities). No matter how you do it, there is NO excuse for there not to be some kind of way to use the higher projections of revenues to give property tax relief in Wisconsin. And Evers and the Legislature are not able to get to a deal, then I'd sure encourage Dems running in all state-level elections to run on using a sizable surplus as a reason to cut property taxes AND adequately fund our community schools. Because today's strong revenue numbers show that it can and should be done.
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