Sen. Chris Kapenga will vote for a budget bill that includes a provision favorable to Tesla. Kapenga owns a business that sells salvaged Tesla vehicles and Tesla parts. WisconsinEye


MADISON - Republican lawmakers found enough votes to squeeze their budget through the state Senate Wednesday after a key member gave his support to the spending plan that includes a provision he sought to expand Tesla sales in Wisconsin.    

The state Senate passed the 2019-'21 state budget, 17-16, with two Republicans joining Democrats in voting against the spending plan. 

The approval came hours after Sen. Chris Kapenga, R-Delafield, pushed back against criticism over his involvement in including the provision to gain his support for the budget while also running a business that advertises itself as a seller of Tesla parts and salvaged Tesla electric vehicles.

"They called into question my integrity based on half-truths that were spun together most likely by those who oppose allowing Tesla to sell in this state," Kapenga said at a news conference. 

To get the vote of Kapenga, Assembly Republicans added a provision to the budget Tuesday that would allow Tesla to sell its electric vehicles directly to consumers rather than having to go through dealers as other car companies must. 

Kapenga owns Integrity Motorsports of Eagle. An accountant, Kapenga said the car business is a hobby and he would not gain financially from the measure that would allow Tesla to sell cars more easily in Wisconsin. 

He choked back tears during the Wednesday news conference, arguing the Milwaukee Journal Sentinel story on his ties to Tesla impugned his character. 

"Just remember as reporters what you say not only impacts the senator it impacts me as a dad ... what you say in the press does impact people's lives," he said. 

Kapenga said he asked to put the Tesla provision in the budget but on its own it was not "material enough" to get him to support the spending plan. He said he struggled with whether to support the budget but ultimately decided he would back it because of several elements.

Kapenga's vote was crucial to passing the budget. Republicans control the Senate 19-14, but two of their members — David Craig of Big Bend and Steve Nass of Whitewater — were on record as no votes. That left no room for error because all Democrats were against it.

WISCONSINEYE: Watch Sen. Chris Kapenga's full news conference

"I cannot recall a governor who traveled this state and sat in folding chairs in veterans' and American Legions and schools and libraries — he'd pull out a folding chair next to an individual and listened," Senate Minority Leader Jennifer Shilling, D-La Crosse, said about listening sessions held by Democratic Gov. Tony Evers before introducing his budget proposal that was largely rewritten by Republicans.

"This is a budget that will be known for missed opportunities," she said.

But Senate Majority Leader Scott Fitzgerald defended Republicans' decision to eliminate many of Evers' key proposals, namely expanding Medicaid by tapping into $1 billion of federal funds.

"I still think this is the most measured, appropriate response to making sure Wisconsinites have access to health care," Fitzgerald, R-Juneau, said. "Not to mention there's $22 trillion in federal debt, which some people care about and others don't care about at all. But it's another thing that I think is in the back of some people's minds. Is federal money free? Is it our money if it's being borrowed?"

Sen. Bob Wirch, D-Somers, said Republican lawmakers don't have similar concerns about accepting federal money for roads or schools.

"It's only when poor people are involved," he said.

The Assembly passed the budget, 60-39, late Tuesday, with three Republicans joining all Democrats to oppose it.

The Republicans voting no were Reps. Janel Brandtjen of Menomonee Falls, Rick Gundrum of Slinger and Timothy Ramthun of Campbellsport.

The spending plan now goes to Evers, who can rewrite it using extensive veto powers that allow him to strike out any words or numbers in it.

The new budget cycle begins July 1. State operations will continue at current funding levels if Evers doesn't sign the budget by then. 

The $81.5 billion, two-year budget, when paired with other legislation the Senate plans to pass Wednesday, would reduce income taxes on average by $75 per person in 2019 and by $136 in 2020. Evers wanted a deeper income tax cut — $216 per person on average — but also wanted to raise taxes on manufacturers and capital gains. 

The Republican budget increases the annual registration fee by $10 for cars (from $75 to $85) and $25 for many light trucks (from $75 to $100).

It also boosts the title fee when buying a vehicle by $95, from $69.50 to $164.50. It would not raise the gas tax, as Evers recommended.

The GOP budget puts $588 million in new state funding toward health care programs over the next two years. The Republicans rejected Evers' plan to take an additional $1 billion in federal funds through the Affordable Care Act to further expand health care programs and free up $324 million in state money. 

The Republican plan provides a $500 million increase in state funding for K-12 schools, about a third of what Evers sought.

The state for years has fallen short of providing two-thirds funding for schools. Republicans said they would get the state to that threshold, but their version of the budget again came shy of that, getting to about 65% for the school year that starts this fall.

Their budget  gives an additional $58 million to University of Wisconsin schools, about half of what Evers wanted.

The budget keeps in place a freeze on in-state tuition that has been in place since 2013. Evers also supports the freeze.

Property taxes on the median-valued home would go up $55 for 2019 and $45 for 2020 under the GOP budget. That's just below the levels in Evers' budget.

Delay for closing teen prison

Senate lawmakers on Wednesday also passed a number of bills, including one that would push back the closure of the state's youth prison.

Under a law passed last year, the state is to close Lincoln Hills School for Boys and Copper Lake School for Girls by Jan. 1, 2021. The prison complex north of Wausau has been the subject of multiple lawsuits, including three that resulted in nearly $5 million of settlements last week.

The facility was also at the center of a long-running criminal probe that ended without charges in April.

Assembly Bill 188 gives the Evers administration six more months — until July 1, 2021 — to close Lincoln Hills. Evers has said he needs even more time and that meeting the new deadline may be “physically impossible” because new county and state lockups must be built to house teen offenders.

The Assembly approved the legislation to delay the closure of Lincoln Hills on a voice vote last week. This bill and others Senate lawmakers approved Wednesday now go to Evers for final approval.


Wisconsin and many other states expanded the collection of sales taxes for online purchases last year after the U.S. Supreme Court cleared the way for doing so.

Assembly Bill 251 would use the additional sales tax revenue to bring down the two lowest income tax brackets. When combined with income tax cuts in the budget, the average tax filer would see a $75 cut in income taxes this year and a $136 cut in 2020.

The bill would also require online marketplaces such as Amazon and Airbnb to collect sales taxes on behalf of those who sell products and services on their platforms.


Senate lawmakers also passed four bills that are meant to alter how the state builds roads.

Assembly Bill 273 would require the DOT to maintain a list of material contractors can use to build roads, which is meant to help contractors submit bids that are as low as possible.

Assembly Bill 275 would require the state to maintain a list of highway projects that could be designed and constructed by the same firm.

The DOT doesn’t allow contractors to do both, but the budget would give DOT the authority to allow that to happen. Assembly Bill 275 would make sure the state would have at the ready a group of projects that could be built using that process, known as design-build.

Supporters of the idea say roads and bridges often can be built faster and cheaper if one company handles an entire project. Opponents say that process doesn't provide enough protections and limits competition because only large firms can offer bids that cover both engineering and construction.  

Assembly Bill 284 would require the DOT to set up a system for giving bonuses to employees who find ways to generate savings or efficiencies.


Contact Patrick Marley and Molly Beck at and


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