Compliance Journal July 2025
Special Focus Wisconsin 2025–2027 State Budget Enacted Wisconsin’s state budget has officially been signed into law as 2025 Wisconsin Act 15 (budget) following final legislative action and a series of partial vetoes by Governor Tony Evers. The $111.1 billion package includes a mix of tax relief, education funding, and investments in key state programs. The budget deal, struck early July between GOP legislative leaders and Governor Evers, preserves a $1.5 billion tax cut previously advanced by the Legislature. It also adds $1.2 billion in new spending for K-12 education, childcare, and the University of Wisconsin system. The Joint Finance Committee advanced the final package on a 12-4 party-line vote. Both chambers followed with bipartisan approval: the Senate passed the bill 19-14 and the Assembly 59-39, with members from both parties crossing lines in support and opposition. Governor Evers signed the budget while exercising his partial veto authority on 23 items. While the budget presents no major changes for the banking industry, there are several items of potential interest worth being aware of which are covered in this article. Department of Financial Institutions The budget allocates over $22.8 million in FY 2025–26 and $22.3 million in FY 2026–27 for the Department of Financial Institutions (DFI). These funds support regulatory oversight, licensing, consumer protection, and key educational initiatives. Highlights include: •
$900,000 annually for the payday loan database and financial literacy programming.
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Continued funding for investor education, credit union and bank supervision.
Additionally, DFI receives over $1 million in segregated revenue each year to administer the college savings trust fund, supporting long-term savings, and family financial planning. Loan Programs and Financial Development Tools While no new state-backed loan funds were established, the budget maintains or authorizes key financial infrastructure including the following: •
Broadband Expansion Grants: $2 million annually to support broadband infrastructure via the Public Service Commission, boosting rural access to digital banking and economic participation.
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Water Infrastructure: Over $732 million in bonding authority for clean and safe drinking water programs, often implemented with bank partnership or private capital leverage.
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Brownfield Site Assessment: $1 million annually through the Wisconsin Economic Development Corporation (WEDC) for redevelopment of underutilized property, often involving commercial lending and municipal finance.