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Wisconsin’s Budget Surplus: Meet the Need, Keep the Commitment
By Wisconsin School Administrators Alliance staff | January 30, 2026
Meet the Need. Keep the Commitment.
There has been renewed focus on the latest state budget estimates from Wisconsin’s nonpartisan Legislative Fiscal Bureau, which projects the state will end the 2025–27 biennium with a surplus of approximately $2.3–$2.5 billion more than anticipated when the budget was enacted. This projection comes as policymakers and communities continue to debate rising property taxes, school funding pressures, and campaign priorities in an election year.
A critical part of this conversation is the special education funding shortfall in the 2025–27 state budget. While there has been discussion about how projections were developed, focusing on past assumptions does not change the reality districts face today: student needs are increasing, service costs are rising, and these services are required by law.
Special education is not alone in facing a funding gap. Medicaid is also projected to experience a comparable shortfall through 2027, underscoring that this is a broader structural challenge, not a one-time budgeting issue. With the surplus, policymakers can fulfill the commitments made in the last state budget for a fraction of the total. It would cost approximately $200 million to honor the stated reimbursement targets of 42% and 45% and convert special education funding to sum sufficient, providing certainty and stability for districts from year to year.
The Path Forward
A straightforward, long-term solution exists. Converting special education categorical aid to a sum sufficient appropriation would provide stability in district budget planning and ensure the state fulfills its commitment to students. This would allow funding to adjust to actual costs, rather than forcing districts to absorb shortfalls and shift the burden to local taxpayers and other educational programs.
Just last week, during the WASB Delegate Assembly, locally elected school leaders adopted an emergency resolution calling on the Legislature to fulfill its commitment to students by addressing this funding gap.
School districts cannot control how many students require special education services or the intensity of those needs. Capped funding forces districts to absorb unexpected cost increases, crowding out resources for other essential programs.
Given the surplus now projected, policymakers have an opportunity to act by creating long-term stability for special education funding and ensuring that every child receives the services they need to succeed. In the end, special education funding is about people, not percentages. Every student deserves the services guaranteed by law and by our shared values.
The SAA budget request called for 60% special education reimbursement – sum sufficient. The budget pressure now facing school districts and the growing reliance on local taxpayers were predictable outcomes when funding does not keep pace with rising costs. Addressing mandated special education services and strengthening general school funding are not an “either/or” choice. Both are necessary to support every student in Wisconsin.
The Bottomline:
- Student needs and service costs are increasing.
Every year, schools serve students with more complex and individualized needs. The price of providing required services continues to rise. - Funding has not kept pace.
Schools are serving more students who require intensive supports, specialized staff, and outside services, yet funding remains capped - Behind every dollar is a child.
Each reimbursement rate represents real students with real needs. - These services are required and essential.
Special education is not optional. Schools are legally and morally obligated to serve students with disabilities, regardless of cost or complexity. - Sum sufficient funding means stability for students and school budgets.
When funding falls short, districts are forced to shift resources from classrooms and other programs just to meet legally required services. Stable, predictable funding is achievable.
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