Walker seeks more tax relief for seniors, parents

MADISON – Gov. Scott Walker is seeking to provide tax relief for seniors and parents paying for child care over the next two years should voters return him to office for a third term.

Walker, who has championed holding the line on taxes in past budgets, announced Monday he would create a new tax credit for parents paying for child care and would seek a 50 percent increase in a refundable tax credit for lowincome seniors 62 and older — a housing credit that was cut in the most-recent state budget.

The measures accompany a $1,000per-year credit for college graduates in Wisconsin to help pay off student loans that Walker announced previously. Walker also is proposing again to soften the penalty for married couples receiving a tax credit for the working poor — a measure lawmakers on the Legislature’s budget-writing committee rejected.

Walker also is asking for more funding for worker training and for lead removal and testing children for lead poisoning — an issue that has rocked Milwaukee for years.

Lawmakers will return to Madison in early 2019 to start work on the next twoyear spending plan.

Walker is seeking the tax relief in the middle of a tough re-election fight against state schools Superintendent Tony Evers, who oversees the Department of Public Instruction.

In DPI’s $15.4 billion budget request, Evers took a shot at his opponent’s record on K-12 funding in a letter accompanying his spending request.

“In recent years historic cuts to education have impeded our progress,” Evers wrote.

Evers is seeking a $1.4 billion increase in state spending for Wisconsin schools over the next two years, and an increase to the amount school districts may raise in revenue without seeking voter approval by $200 per student in the first year and $204 per student in the second.

The increase would provide districts with the same funding bump that Walker’s most-recent budget provided but through a different funding stream. After 2021, changes to the revenue limit for school districts would be tied to inflation.

Evers’ budget request also addresses lead contamination by giving school districts the ability to raise revenue to pay for lead abatement projects through property tax increases without seeking voter approval first.

Meanwhile, Walker’s increase for a tax credit aimed at helping low-income seniors who own homes would be tied to inflation in future years and would cost $61.8 million in the first year and $72.7 million in the second, according to the Department of Revenue.

The credit would begin to phase out for seniors earning $12,090 annually and higher. Those earning $37,020 or more would not be eligible for the credit, according to the DOR.

The average senior who qualifies would see a $483 increase in the amount they could claim, according to Walker’s office.

In the most recent state budget, Walker and lawmakers limited the credit for taxpayers age 62 and older for the first time, which resulted in a $12.2 million decrease in how much the state spent on providing the relief.

Walker also is seeking a new tax credit to cover 20 percent to 35 percent of child care expenses, depending on the income of a parent or guardian. Up to $3,000 of expenses per child may be claimed.

Funding for Medicaid

Among the agencies’ budget requests, the Department of Health Services is seeking a $623.7 million increase in state funding largely to pay for costs associated with administering Medicaid. About 80 percent of the funding increase will go toward the Medicaid and BadgerCare programs that provide health care for people living in low-income households.

Attracting new residents

The Wisconsin Economic Development Corp. also is seeking $10 million in the 2019–’21 state budget to create an ongoing program that would provide the department with $5 million each year for a campaign to attract new residents to Wisconsin.

The Legislature previously passed legislation that gave the department $6.8 million in one-time funding to create a marketing campaign that would target veterans by letting them know they can access generous state benefits and millennials by touting the state’s cost of living.

WEDC officials in their budget request said the rate at which out-of-staters are moving into Wisconsin is rising slightly but not at the rate “necessary to support the state’s talent demand.”

Democrats largely opposed the earlier legislation, saying Walker’s own policies have driven residents from the state and hindered attracting new ones.