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2025-27 State Budget Signed: Progress Made & Ongoing Challenges for Schools
By Wisconsin School Administrators Alliance staff | July 3, 2025
Progress Made & Ongoing Challenges for Schools
Around 1:30 a.m. this morning, Governor Tony Evers signed Wisconsin’s $111.1 billion biennial budget, just about an hour after it cleared the full Legislature. The final push was driven by the need to enact the state budget before Congress approved the federal reconciliation bill. Had the federal bill passed first, it would have blocked a key provision in the state budget—an increase to the hospital assessment that is expected to generate roughly $1 billion annually in federal revenue, most of which will flow back to Wisconsin hospitals.
The budget represents a compromise between the Legislature and the Governor, reflecting deeper tax cuts than Governor Evers originally proposed while also increasing funding for the University of Wisconsin System, childcare, and K-12 education beyond what Republican leaders initially supported.
The final package received mixed reactions in both legislative chambers, with broad agreement that this was one of the most unusual—and at times turbulent—budget processes in recent memory. Both sides made difficult decisions to reach an agreement that ensures at least some key investments, including a long-overdue boost in special education funding.
The budget increases the primary special education categorical aid reimbursement rate from just over 30% currently to 42% in the first year and 45% in the second year of the biennium. This marks the highest reimbursement level in three decades and represents a larger increase than the last three state budgets combined. Achieving this outcome was no easy task, and every school leader who engaged with legislators and their community, shared the realities of school finance, dispelled common misconceptions, and stayed responsive throughout the shifting negotiations should be proud of their efforts.
That said, there is clear recognition that the overall investment in education still falls short in several critical areas, most notably, the failure to provide additional general school aids to offset the increased revenue limit. As a result, many districts will face the difficult task of explaining rising property taxes to their communities.
School district budgets do not exist in isolation, and with the looming threat of federal funding cuts of up to 11%, and potentially more, the challenges ahead are significant. Now more than ever, we must continue these conversations, sustain strong advocacy, and build on the progress achieved in this budget cycle. The work is far from over, but this step forward shows what is possible when school leaders and communities unite around a clear, consistent message grounded in facts and data.
Early next week, after the review of the technical amendment to the bill is completed, a full summary will be provided with additional supporting talking points.
Have a great holiday weekend,
Dee
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