March 6, 2023 at 9:36 a.m.
Evers unveils $3.8 billion capital spending plan
Some Republicans think he's got his priorities wrong
Some Republicans, though, said the plan was short-sighted.
The state's capital budget is used for the renovation and renewal of the state's existing infrastructure, as well as to support major new capital projects. The governor's 2023-25 proposal would spend almost $3.8 billion across 28 counties, mostly in southern and central Wisconsin, and it would make heavy use of the state's huge budget surplus to pay for projects instead of borrowing for them.
Specifically, the governor said the proposed budget represents one of the strongest investments ever for Wisconsin's facility infrastructure - all without the burden of 20 years of debt service for general obligation debt.
At a 4% comparison interest rate, for example, the governor said his idea to fund $1.9 billion of the capital improvement projects instead of borrowing will save taxpayers nearly $1 billion in future debt service payments.
"Our budget is all about investing in the future of our people, our communities, and our state to bolster our workforce, prepare our state and our economy for the future, and maintain our economic momentum by building our economy from the ground up," Evers said. "Our historic surplus means we have historic opportunity and responsibility - to invest in key projects that have long been neglected while still staying well within our means, keeping borrowing low, and saving taxpayers money in the long run, and that's exactly what our capital budget does."
Evers said the recommended investments would help grow the economy by providing family-supporting jobs and supporting businesses throughout the state. According to Associated General Contractors of Wisconsin, Evers said, for every $1 in construction spending, there is $1.84 of economic activity generated in Wisconsin, and, for every $1 million of construction spending, 12 jobs are supported in the state's economy.
As a result, the administration's proposed capital budget supports approximately $6.8 billion in economic activity and 45,000 jobs, the governor said.
"From investments in our UW System campuses so we can grow the next generation of scientists, leaders, educators, and innovators, to our state parks and ensuring Wisconsinites can enjoy our vast and valuable natural resources, to finally addressing deferred maintenance projects and the safety of our public facilities, these are critical projects that will help us build the infrastructure of the 21st century," he said.
One focus of the budget plan is Evers's desire to aggressively address deferred maintenance and life safety issues in state-owned buildings and to maximize and modernize state and higher education facilities while supporting sustainable designs.
To that end, the governor wants to inject almost half of the proposed capital spending in the UW System, at campuses around the state.
State parks are another priority, as are upgrades to Fire Response Ranger Stations. The governor also supports funding upgrades to the Wisconsin Veterans Home at King and purchasing the Veterans Museum location for future upgrades.
The state capitol building itself would get some care, with $50 million set aside for restorative and infrastructure improvements.
In addition, the governor's plan pays attention to the state's juvenile justice system, with money to go toward further work in closing Lincoln Hills and Copper Lake as juvenile facilities, including additional bonding to complete the Milwaukee Type 1 facility, bonding for a new Type 1 facility on Department of Corrections-owned property in Oregon, the expansion of the Grow Academy in Oregon, and bonding to study and plan for a third Type 1 facility in the Northeastern region.
The plan would spend $225 million on health services facilities, including utility infrastructure, support services, and patient care, and the governor said it would leverage almost $52 million in federal support for Wisconsin National Guard facilities. Evers is recommending $84 million total funds for capital improvement projects on the latter facilities.
Continuing support would be given for a new Wisconsin History Museum with an additional investment of approximately $60 million, including more than $42 million in added state support. That funding is necessary, the governor says, to recognize the rising cost of the project in the post-pandemic construction environment.
Under Evers's plan, the state would install renewable energy capabilities in state facilities with a $25 million investment in support of the governor's Clean Energy Plan.
Significantly, the budget would tackle the state's backlog of deferred maintenance by providing the largest investment to date of $616 million for all state agencies, including the UW System, for small to mid-sized capital maintenance and repair projects across the state in the All Agency Program, the budget plan stated.
Finally, Evers says the budget would support local community projects with a statewide public purpose, such as the Bronzeville Center for the Arts, Versiti Blood Research Institute, Milwaukee Iron District, Woodman's Sports and Convention Center in Janesville, the Green Bay National Railroad Museum, Children's Wisconsin, Marquette University School of Dentistry, and the Door County Peninsula Players Theatre.
GOP responds
Some Republicans didn't think too much of the capital spending plan.
Rep. David Steffen (R-Green Bay) said the proposed spending was shortsighted and the plan lacked any long-term solutions.
Most notably, Steffen said, the governor refused to address the closure of the Green Bay Correctional Institution (GBCI), even though three years have passed since the governor received the results of a multi-year architectural and operational analysis of GBCI. Steffens said Evers has simply ignored the report's recommendation for replacing the failing maximum security prison located in Allouez.
"It's incomprehensible that a governor would ignore a core responsibility of the state - providing safe, secure facilities for inmates under our care," Steffen said. "Sadly, Gov. Evers has put the wants of the UW football team ahead of the safety and security of the public, state employees, and prisoners."
Steffen was referring to the capital budget's proposed expenditure of $285 million to upgrade UW's Camp Randall football stadium. With a state budget surplus of over $7 billion, Steffen said it was the perfect time to take on state building projects, particularly the GBCI because the independent report gave GBCI a failing grade on all major operational and mechanical functions.
Instead, Steffens said, Evers made the football stadium his priority.
"The coffers and the legislature are prepared to once-and-for-all solve this critical safety and structural problem in Allouez," he said. "Unfortunately, Evers chose to direct that money to a football field near his house. Pathetic."
The state building commission will meet March 23 to vote on the governor's recommendations.
That won't be the end of the matter, though. The commission's recommendations are statutorily required to be submitted to the Joint Committee on Finance by the first Tuesday in April.
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