Wisconsin Budget Deal Reached, Providing Significant Boost to University System

Wisconsin Governor Tony Evers and Republican leaders in the Legislature have reached a budget agreement that could give the University of Wisconsin its biggest boost in two decades. The deal, announced Tuesday, includes a $256 million increase in state aid, which must be allocated under two new formulas that prioritize stabilizing campuses with declining enrollment and rewarding campuses for the number of credit hours that students complete. The agreement also increases special education reimbursement rates from 35% in 2026 and 37.5% in 2027 to 42% in the first year and 45% in the second. Additionally, the state will invest $300 million in child care, including $110 million in "bridge funding" for child care providers as the state transitions away from its current model to a new one.

Key Takeaways:

• The budget deal provides the University of Wisconsin with its biggest boost in two decades, with a $256 million increase in state aid.
• The deal includes two new formulas that prioritize stabilizing campuses with declining enrollment and rewarding campuses for the number of credit hours that students complete.
• Special education reimbursement rates will increase from 35% in 2026 and 37.5% in 2027 to 42% in the first year and 45% in the second.
• The state will invest $300 million in child care, including $110 million in "bridge funding" for child care providers.
• Other areas of the agreement include raises for state employees, increased funding for mental health initiatives, and incentives to bring the big screen to Wisconsin.
• The deal includes $27 million for merit and market pay adjustments to keep professors, as well as reforms to the UW system, including new teaching requirements for instructional staff.
• The UW system will also get $5 million to begin planning for the demolition of the Mosse Humanities building at UW-Madison and get funding for its top two capital priorities: $194.5 million for the Prairie Springs Science Center at UW-La Crosse and $189.3 million for the renovation of the health science center at UW-Milwaukee.
• The deal provides $840 million in building projects for the UW system, including renovations on Dejope and Chadbourne halls' dining facilities and a $163.2 million renovation to Science Hall.
• State employees will see raises of 3% in the first year of the state budget and 2% in the second.
• Funding for K-12 school mental health programs will be doubled to $30 million.
• The UW system will get $7 million over the next two years to pay for virtual mental health services for students.
• Filmmakers who use Wisconsin as their backdrops will be eligible for up to $5 million in tax credits.
• The state will set aside $50 million in local stimulus grants, pulled from interest earned on state revenue.

Statistics:

• $256 million increase in state aid for the University of Wisconsin.
• 42% special education reimbursement rate in the first year and 45% in the second.
• $300 million investment in child care.
• $110 million in "bridge funding" for child care providers.
• $27 million for merit and market pay adjustments to keep professors.
• $840 million in building projects for the UW system.
• $30 million in funding for K-12 school mental health programs.
• 3% raise for state employees in the first year of the state budget.
• 2% raise for state employees in the second year of the state budget.
• $7 million for virtual mental health services for students.
• $5 million in tax credits for filmmakers who use Wisconsin as their backdrop.
• $50 million in local stimulus grants.

Sources:

• The Wisconsin State Journal (Madison, Wis.)
• Tribune Content Agency, LLC