It's only a little bit lower than salaries for non-Big Tech that are in the area. Again, for Madison compare it to https://www.levels.fyi/companies/american-family-insurance/s...
Trying to make state government competitive with Big Tech salaries (especially in states that aren't California) would not go over well with voters.
While private sector deals with layoffs and uncertainty, the public sector has things like "budget not good this year? Two weeks unpaid vacation for everyone" - https://docs.legis.wisconsin.gov/code/executive_orders/2003_... ... 401k matching? How about a fully funded pension instead. https://reason.org/commentary/the-wisconsin-retirement-syste...
Football coaches are revenue generating for universities... software developers at universities not so much. Doctors are licensed professionals that have a decade of schooling... software developers frequently reject licensure and celebrate their lack of a formal education.