Budget surplus agreement includes new funding for special education and general school aids
By Mike Barry | May 12, 2026
Dear SAA Colleagues:
The $1.8 billion surplus agreement announced yesterday by Governor Evers includes just over $600 million for K-12 education, split roughly evenly between new funding for special education and general school aids, two of SAA’s top budget priorities.
The $315 million in new special education categorical aid is expected to reach reimbursement levels of 42% this year (2025-26) and 50% next year (2026-27). Although funded on a ‘sum certain’ basis, the appropriation appears to be enough to reach the stated reimbursement targets based on reasonable estimates of cost increases over the two-year period. This should prevent the problem school districts encountered with the original 2025-27 budget, which contained a special education appropriation that was insufficient to reach the intended reimbursement rates of 42% in the first year and 45% in the second year. This caused DPI to prorate the initial reimbursement considerably downward.
Beyond next year, the 50% special education reimbursement rate establishes a much-improved baseline for future state budget cycles. Also, to the extent that special education funding is improved, it benefits general education as well by lessening the need to transfer scarce resources out of the general fund to cover underfunded special education costs. These are positive outcomes for public schools and students.
The budget surplus deal also includes $302.5 million in general school aid funding to help offset increases in school district property tax levies. However, instead of using equalization aid, this new general aid creates a category within the existing general aid appropriation. As you may recall, the original 2025-27 state budget failed to provide an increase in equalization aid, causing an inevitable increase in school property tax levies statewide. Unlike equalization aid, however, this new general aid does not take into account property wealth or shared costs, but rather distributes an equal per-pupil amount to every district.
The new general aid will begin in 2026-27 at an estimated $387 per pupil (using a three-year enrollment average for the first 25% of the aid distribution and a two-year enrollment average for the remaining 75%). As a general school aid, this new aid category falls ‘inside the revenue limit formula’ (meaning it is not spendable revenue). However, it will help offset school district property tax levies starting next fall and thereafter.
These are steps in the right direction. The K-12 provisions in this budget surplus package will provide a measure of immediate and much-needed relief for school districts, forty percent of which had an operating deficit last year. Still, we have a lot of work ahead to fix structural shortfalls in the school funding system and end the ‘funding via referendum’ cycle, which has proven so unworkable for schools and taxpayers alike.
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Members-Only Helpful Videos
By Dee Pettack | November 13, 2023
The SAA has been working hard on a new Members-Only website. We’ve created a few screencast videos to help you use and navigate the new site.
Here’s a general training video to show you how to use the new site:
Here’s a video that focuses on login issues and demonstrates password reset:
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