Inside University of Wisconsin's budget deal: Pressure, predictions and last-minute maneuvering

In the span of a week late last year, the University of Wisconsin System suffered whiplash.

A controversial deal with the Republican-controlled Legislature over campus diversity efforts came together quickly in mid-December, fell apart in a stunning 52-minute board meeting — and then was carefully pieced back together.

As dramatic as it played out publicly, newly released records show it was even messier behind the scenes. Over a single week, the UW Board of Regents faced unprecedented pressure from all sides, according to interviews and nearly 1,500 pages of emails and text messages the Milwaukee Journal Sentinel received under the state's public records law. The records showed deep fissures among board members, and UW System President Jay Rothman questioning his ability to continue leading.

"This has been more of a shitshow than a dairy farm ever has," board member and dairy farmer Cris Peterson texted Rothman toward the end of the chaotic week.

A lot was at stake.

One side believed there should be no bargaining over diversity, equity and inclusion, or DEI, which Republican Assembly Speaker Robin Vos calls divisive and wasteful. The other side supported ending a six-month budget standoff that left 35,000 employees without pay raises and UW-Madison without a widely supported new engineering building.

Negotiating the compromise were Rothman and UW-Madison Chancellor Jennifer Mnookin. Neither had been through the state budget process before.

Here's how it played out:

Thursday, Dec. 7

The regents convened at the flagship campus for their regular meeting. The gatherings are heavily scripted bureaucratic events. Votes are almost always unanimous.

But this meeting was different. It took on a more hush-hush tone. UW leaders scurried behind closed doors to hammer out the deal's details. Communications staff kept tabs on reporters.

The day before, Senate Majority Leader Devin LeMahieu, R-Oostburg, had said the Legislature was close to a deal, which the UW System disputed.

In fact, a deal was imminent. Details were already leaking out.

At noon, Rothman and Mnookin videoconferenced with Vos. The deal called for restructuring 43 DEI positions to focus on broader student success efforts. In exchange, lawmakers would approve the pay raises, fund the engineering building and reverse a $32 million budget cut.

"Frankly, I think it’s a reasonable compromise deal in both directions - though we are still not over the finish line and so til that happens … who knows?" Mnookin texted a friend around 1:30 p.m.

The Journal Sentinel and other media outlets reported on the proposed terms, which had yet to be officially announced. State Democratic lawmakers urged students to contact board members and declare DEI non-negotiable.

"I am concerned that others will frame this agreement, and we will not look good," Diana Harvey, the UW-Madison vice chancellor for strategic communication, texted Mnookin around 4 p.m. "I hate the fact that we are surrendering the narrative on this."

The chancellor's inbox filled with opinions. One alumna said UW-Madison would survive without new buildings, but could not survive giving up its principles. The email's subject line itself was a plea.

"Please don't."

Friday, Dec. 8

Reaction swelled after the deal's terms were formally released Friday morning. Some were relieved. Others were outraged.

UW-Milwaukee professor Jeffrey Sommers told Rothman the UW System "won on most matters of substance while chiefly conceding only a few points on symbolism."

Greg Jones, the president of Dane County's NAACP chapter, asked how DEI can thrive in a retrenched environment.

"It is clear that DEI was held hostage and our leaders are willing to turn their backs," he emailed.

That evening, UW-Milwaukee Chancellor Mark Mone urged Rothman to take some time off after a "huge week."

Rothman expressed uncertainty about the state of the deal.

"One step at a time," he emailed. "Hopefully the Regents approve things tomorrow."

Mone's prediction to Rothman: "Divided but supported."

Saturday, Dec. 9

The deal felt rushed. Regent Dana Wachs wanted to buy the board more time. But his motion to delay failed, 9-8.

Before the vote, board president Karen Walsh warned of consequences either way. Board vice president Amy Bogost held her face in her hands. Rothman scribbled "yes" on one side of his legal pad and "no" on the other.

As the roll was called, video of the meeting shows Rothman moved his pen back and forth over the columns, indicating how he expected each regent would vote. For most board members, he was right. But when Walsh and Regent John Miller voted no, his pen was poised over the wrong column.

Asked what Rothman had expected the vote to be, UW System spokesperson Mark Pitsch last week declined to comment. Walsh didn't respond to a request for comment. Miller, who seemed to speak in support of the deal before voting against it, declined to comment.

The vote failed, 9-8. Walsh, Bogost and Miller joined Wachs and five regents of color in rejecting the deal.

Rothman commiserated with his chief of staff over a drink that afternoon. His messages piled up.

"All of the regents who voted no on the agreement feel they are righteous warriors for the 'underrepresented, the marginalized, the victims and the oppressed,'" emailed Peterson, one of three Republican appointees on the 18-member board. "It’s a religion and it’s crap. We are ALL warriors for justice and equality. DEI at some level has morphed into reverse racism."

In text messages to two other regents, Rothman expressed concern about his credibility to continue leading the system.

“To have the president and vice president vote against a resolution I recommended makes my situation really challenging," Rothman wrote to Regent Ed Manydeeds.

To Regent Jim Kreuser, Rothman wrote he was “pretty sure” about what he needed to do next. “Not happy about that,” he continued, “but I just lost my credibility to lead.”

Kreuser, who supported the deal, apologized for "what the front row did to you." He suggested Grey Goose vodka for the night.

“Or earlier!” Rothman wrote back with a smiley face.

Sunday, Dec. 10

Some board members worried Rothman would resign. Almost immediately, they started working to reverse the vote.

Regent Kyle Weatherly texted Mnookin at noon. He was working out a deal with Walsh and Bogost, who said they would vote yes.

An hour later, Rothman reached out to Walsh.

"Yesterday was a tough day," he texted.

Walsh apologized, and said she believed there was a path forward.

"We were under so much pressure, as you know," she wrote, adding she had "the utmost respect for you and the incredible job you are doing.”

Monday, Dec. 11

The day passed with a flurry of phone calls as board leaders and others resurrected the deal.

In a 10:30 a.m. text message, UW Foundation CEO Mike Knetter lamented the lack of a relationship between Democratic Gov. Tony Evers and Vos, which put the onus on UW leaders to resolve the impasse.

"Such a failure of state government," he wrote. "I’m really sorry we are here. You don’t deserve this and neither does Jay. The Regents are not qualified."

Adding another layer of complexity was the status of four board members serving without the state Senate's stamp of approval. Senate President Chris Kapenga, R-Delafield, suggested the three who voted against the deal — Bogost, Miller and Wachs — could lose their seats.

Pressure built as news of Rothman floating his resignation broke publicly in the Journal Sentinel.

That evening, two of UW-Madison’s top donors, John P. Morgridge — the former chief executive of Cisco Systems — and his wife, Tashia Morgridge, emailed Rothman to say he had their full support.

The Morgridges also said they understood the concern about the deal opening the door to more legislative restrictions.

"I will do everything in my power to make sure this is not the start of a slippery slope toward something we would all find unacceptable," Rothman responded.

Tuesday, Dec. 12

In the wake of the Journal Sentinel story, others reached out to Rothman in a show of support.

"Hope you are hanging in there," Sen. Rob Hutton, R- Brookfield, texted Rothman. "I doubt you signed up for this. We need you in that role."

Regent Peterson pleaded with Rothman to stay, telling him he had been "cut off at the knees Saturday by our leadership."

In a closed-door board meeting, chancellors pleaded for reconsideration of the deal. Some regents would later say the campus leaders' input should have been presented before the Saturday vote.

Word of the regents reconsidering the deal began trickling out, infuriating lawmakers of color.

UW-Madison vice chancellor Charlie Hoslet told Crystal Potts, the senior state relations director, that Rep. Sheila Stubbs, D-Madison, would need a call from the chancellor "soon after the vote happens, if it indeed goes forward."

Rothman texted Regent Ashok Rai he was "fine and at peace with whatever happens."

Wednesday, Dec. 13

The board scheduled a re-vote for 5 p.m. Leading up to it were a string of calls, texts and emails to confirm the numbers. Walsh ran her remarks by Rothman and his staff ahead of the meeting.

In a speech before the vote, Walsh blamed Saturday's vote on a lack of time. She said additional campus feedback helped inform board members about the stakes.

The board approved the deal in an 11-6 vote. Three regents flipped: Walsh, Bogost and student regent Jennifer Staton, who delivered a fiery speech slamming Vos.

"You showed some real courage today while conveying a strong message," Rothman wrote to Staton at 10 p.m. "You can and should be proud.”

Wachs voted no a second time, knowing it would sink his nomination.

"I knew I was a dead man walking," Wachs told the Journal Sentinel. (The Senate would fire him and Miller three months later.)

Some outsiders were embarrassed by the board's about-face.

"You were rolled by a seedy little man with an axe to grind and whom you've invited back for more," one alum wrote, apparently referring to Vos.

For now, though, everyone exhaled.

The day after the deal was done, Mnookin texted a friend: "What a circus the last few days have been!"

Contact Kelly Meyerhofer at [email protected]or 414-223-5168. Follow her on X (Twitter) at @KellyMeyerhofer.

This article originally appeared on Milwaukee Journal Sentinel: Behind the scenes of the University of Wisconsin's diversity deal