Advocacy Update: Budget Signed, Governor’s Seat Open: Now’s the Time for Banker Advocacy
By Lorenzo Cruz
The 2026 Wisconsin gubernatorial race is expected to break spending records, with key battles for both the governor’s office and control of the state legislature. On July 24, 2025, Democratic Governor Tony Evers announced he would not seek re-election, opening up the race for the first time in 16 years. Here’s a breakdown of the candidates and potential contenders:
Democratic Candidates:
• Lt. Governor Sara Rodriguez: Has officially launched her campaign.
• Milwaukee County Executive David Crowley: Taking steps toward running.
• Attorney General Josh Kaul: Has shown interest, either publicly or privately.
• Former Lt. Governor Mandela Barnes: Considering a run.
• State Senator Kelda Roys: Also mulling a bid.
Republican Candidates:
• Washington County Executive Josh Schoemann: In the race.
• Businessperson Bill Berrien: Has launched his campaign.
• U.S. Rep. Tom Tiffany: Considering a run.
• State Senator Mary Felzkowski: Seen as a potential candidate.
• Former U.S. Senate candidate Eric Hovde: Considering running.
• Business person Tim Michels: Also weighing a run.
• Former Governor Tommy Thompson: Has not ruled out a bid.
Independent:
• David King: Running as an Independent.
With the race still evolving, Attorney General Kaul would likely be the early favorite for the Democratic primary, assuming he enters. On the Republican side, the candidate who secures Donald Trump’s endorsement is likely to have the edge, but the primary could still be unpredictable with a crowded field. The last open gubernatorial seat in Wisconsin occurred in 2010, when Scott Walker defeated Tom Barrett. National analysts have shifted the race from lean Democrat to a toss-up.
In other news, on July 3, 2025, Governor Evers signed the state’s $111 billion 2025-2027 budget into law. The budget was passed quickly due to tight deadlines for federal funding and a more divided legislature following recent elections and redistricting. The budget represents a compromise between Evers and the Republican-controlled legislature, with key provisions including:
• Tax Cuts: $1.3 billion in tax cuts, restructuring the second tax bracket, eliminating the sales tax on household utilities (effective October 2025), and exempting some retirement income for seniors.
• Education Funding: Increases to the state’s special education reimbursement rate and support for the University of Wisconsin system.
• Child Care: $330 million allocated for childcare, including direct payments to providers.
Despite this compromise, some Democrats felt the budget did not go far enough in addressing their priorities, such as funding for schools, childcare, and Medicaid expansion. Governor Evers called it the best deal achievable through compromise.
The state’s non-partisan fiscal bureau projects a $770 million surplus for the 2025-2027 budget, but a looming structural deficit of $2.2 billion for the 2027-2029 period. With a challenging budget outlook and a contentious gubernatorial and legislative race ahead, the likelihood of significant new legislative action in the coming months appears limited.
Amid this uncertainty, it remains crucial for bankers to stay engaged in the political process. As of late July, the Wisconsin Bankers Association (WBA) had reached 57% of its $300,000 annual fundraising goal. WBA’s advocacy efforts continue to focus on issues like interchange fees, crypto regulation, credit unions, taxes, AI, and privacy. Contributions to WBA’s PAC or conduit are encouraged to support pro-business, pro-banking candidates, ensuring the industry’s voice remains influential.
Cruz is WBA vice president – government relations.
