Evers urges approval of $4.3B capital budget, warning tariffs could drive up final costs

Gov. Tony Evers pitched his $4.3 billion capital budget as a critical step to address the state’s aging infrastructure while building for Wisconsin’s future.

He also warned yesterday that putting off the projects could drive up the final costs amid President Donald Trump’s push for tariffs with American trading partners.

Meanwhile, the GOP co-chairs of the Joint Finance Committee called the plan another example of the guv’s “irresponsible spending.”

The big-ticket items in Evers’ proposal include nearly $1.6 billion in work at Universities of Wisconsin campuses and more than $493 million for the construction costs of his previously announced plan to revamp the state’s Corrections system.

“We can’t afford to kick the can down the road on key infrastructure projects across our state, most especially as the cost of building materials may only get more expensive with each day of delay due to potential tariff taxes and trade wars,” Evers said.

Two years ago, Evers proposed a $3.7 billion capital budget that Republican lawmakers pared back to $2.3 billion.

State Rep. Mark Born, R-Beaver Dam, and state Sen. Howard Marklein, R-Spring Green, vowed that Republican lawmakers will put together a “responsible Capital Budget that Wisconsin can afford” while balancing the state’s needs with sound fiscal responsibility.

The guv’s proposal comes on the heels of him releasing an executive budget that would spend $118.9 billion in all funds, a proposed increase of 20.3%.

“We must ensure that our operating budget and capital budget will work together to fund the priorities of the state,” the Joint Finance co-chairs said. “Legislative Republicans will work to right-size these proposals and craft a budget Wisconsin can be proud of.”

The $4.3 billion capital budget includes $3.8 billion in new borrowing.

More than a third of the new bonds would go to projects at the UW System. That includes $1.1 billion in general fund supported bonding and another $348.6 million in borrowing covered by program revenue.

The biggest projects proposed for the UW System portion include:

• Enumerating a $292.6 million project to relocate the remaining occupants from the Art and Music departments now housed in UW-Madison’s Mosse Humanities Building to pave the way for eventually demolishing the building and prepping the site for future development.
• $293.4 million to construct new student residences at UW-Madison
• $137.6 million to revamp the library on the Oshkosh campus.

UW President Jay Rothman said the guv’s proposal “ensures Wisconsin is continuing to build opportunities for future generations of students.”

Evers also proposed putting $1.2 billion into the all agency program, which covers maintenance costs. In announcing the capital budget, Evers knocked the GOP-controlled Legislature for “continued obstruction and delays” that his office said have helped push the deferred maintenance backlog to $13 billion. That includes $3.4 billion in work to prevent system failures and safety hazards.

Before releasing his executive budget last month, Evers unveiled plans to revamp the state’s prison system, including a plan to turn Waupun into a medium security prison with enhanced job training programs. Along with converting the state’s oldest prison from a maximum security facility, the plan includes converting the state’s youth prison in northern Wisconsin into a medium security men’s facility.

In addition to the $325 million for work on the adult system, Evers is proposing another $168.4 million in work on the youth system. That includes: building a new facility in Dane County to house the state’s most serious juvenile offenders, planning and designing another type 1 facility, and expanding the Grow Academy in Oregon. The Dane County facility is a 120-day program targeting delinquent male youths aged 14-18.

The plan also includes $25 million in general fund supported borrowing for preliminary planning, design and site work for a new Milwaukee County courthouse. The county had requested $250 million to design and construct the building, which has an overall price tag of $495 million.

The office of Milwaukee County Exec David Crowley said the current timeline for the project calls for construction to begin in late 2027 with the building possibly opening in 2031.

Crowley said 80% of the county’s property tax levy covers state-mandated services, arguing a state investment is critical for the project.

“It is critical to pursue this generational investment now to improve outcomes for all impacted by the justice system, address significant safety and constitutional concerns tied to the facilities, create new operational efficiencies, and preserve the continuity of court operations,” he said.