Wisconsin State Budget Breakthrough Yields Gains for K-12 Education, but Leaves Funding Uncertainty

The recently passed biennial state budget gives K-12 education an additional $1.4 billion, with over $500 million more in general special education funding. This includes a reimbursement rate increase from 33% to 42% in the first year and to 45% in the second, making it the largest special education reimbursement rate in three decades. However, the budget fails to increase general state aid per-pupil funding, leading to concerns that funding shortfalls will be exacerbated and school districts will have to rely more on property taxes, potentially leading to further costly referendums before voters.

Key Takeaways:

• The biennial state budget allocates an additional $1.4 billion to K-12 education, with over $500 million more in general special education funding.
• The budget increases the reimbursement rate for special education costs from 33% to 42% in the first year and to 45% in the second.
• The budget does not increase general state aid per-pupil funding, which is the largest form of state support for Wisconsin's public schools.
• School districts warn that without increasing general state aid, funding shortfalls will be exacerbated and reliance on property taxes will increase, potentially leading to further costly referendums before voters.
• The Wisconsin Association of School Boards estimates that if every school district in Wisconsin used the full per-pupil increase, property taxes statewide would be raised roughly $255 million and $505 million for 2025-26 and 2026-27, respectively.
• The Madison School District anticipates a decrease of nearly $12 million due to the decline in state aid.
• Twelve of the 16 school districts fully or partially in Dane County are expected to get less general state aid this time around than they did for 2023-25, with only Belleville, DeForest, Marshall, and Sun Prairie seeing increases.

Statistics:

• $1.4 billion: additional funding allocated to K-12 education
• $500 million: additional funding for general special education
• 33%: current reimbursement rate for special education costs
• 42%: reimbursement rate in the first year
• 45%: reimbursement rate in the second year
• 60%: increase in net aid compared to the legislative budget-writers' approved increase
• $30 million: funding allocated for school-based mental health services
• $325 per student: property tax increase allowed by the governor's expansive veto powers
• $255 million and $505 million: estimated property tax increases statewide for 2025-26 and 2026-27, respectively

Sources:

• Gov. Tony Evers' office
• Wisconsin Association of School Boards
• Wisconsin State Journal
• Tribune Content Agency, LLC