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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JFC Advances Budget To Full Assembly And Senate
By Wisconsin School Administrators Alliance staff | July 2, 2025
With a divided state government, the path to passing a budget required significant compromise between legislative leaders and the Governor’s office. Throughout the last month, budget negotiations repeatedly stalled and restarted, at times placing the passage of the 2025–27 state budget in serious doubt. Today’s meeting of the Joint Finance Committee and tomorrow’s extraordinary floor sessions in both houses signal the plans to deliver this budget to the Governor with a bipartisan vote in the Senate.
In their meeting today, JFC concluded its work on the budget with omnibus Motion #130, which finalized remaining areas of the budget and revisited several K-12 education provisions previously adopted in Motion #48. (Items # 11-15 in Motion #130)
Motion #130 made several changes:
- Increased the Primary Special Education Categorical Aid from 35%/37% to 42% in the first year and 45% in the second—a long-overdue step forward.
- Restored funding to support the Mental Health Categorical Aid (“Get Kids Ahead”) $15 million per year to support student wellness.
- Authorized literacy funding originally tied to Act 20 mandates for resources for curriculum, materials, and training.
These changes reflect acknowledgment by lawmakers of the mounting financial strain schools face in meeting the needs of students with disabilities.
The final agreement, however, fails to provide additional general school aid to offset the costs of the $325 per-pupil revenue limit increases. This decision pushes the burden onto local property taxpayers, ignoring the interconnected nature of school finance and failing to treat district budgets as a whole.
This gap in state support comes at a time when Wisconsin school districts are also potentially absorbing an 11% loss in federal funding. The combination of shrinking federal dollars and stagnant state support in core funding areas poses a serious challenge to districts across the state, rural, suburban, and urban alike.
While this agreement includes an increase to special education, it also reflects the limitations of governing in a politically divided environment. It is disappointing that broader funding challenges were left unaddressed. SAA remains committed to advocating for long-term, sustainable funding that addresses school budgets in totality. Every Wisconsin student—regardless of zip code, background, or ability—deserves access to the high-quality education and support they need to succeed, and we’ll continue to push toward that.
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State Budget Update: Impasse in Negotiations and Key Education Priorities
By Wisconsin School Administrators Alliance staff | June 23, 2025
With numerous headlines and statements circulating about the 2025–27 Wisconsin State Budget, I would like to provide a timely update on the current status and offer some context around the complex dynamics at play in the Capitol.
Last week, the Joint Finance Committee (JFC) abruptly canceled its scheduled vote on several major agency budgets, signaling a breakdown in the budget process. No rescheduled date has been announced, and clear signs of an impasse have emerged between legislative leaders.
In the days following the cancellation, lawmakers released statements suggesting that Assembly Republicans have been working with Governor Evers’ office in pursuit of a compromise. However, progress has been undermined by divisions within the Senate Republican caucus. With a narrow majority, Senate Republicans can afford no more than one defection, and at least two GOP Senators, Chris Kapenga (R-Delafield) and Steve Nass (R-Whitewater), have publicly voiced strong opposition to any agreement that includes significant new investments.
Key points of contention include:
- Funding levels for K-12 public education.
- UW System funding and proposed reforms.
- Income tax reduction proposals.
- Childcare investments.
- Shared revenue support for local governments.
Governor Evers has called the Senate’s proposed cuts to the UW System a “non-starter.” As the July 1 deadline for enacting a new budget quickly approaches, the likelihood of reaching an agreement before the start of the next fiscal year is uncertain. If a deal is not reached, the state will continue operating under the current 2023–25 budget framework.
Amid this uncertainty, it is important to use this time to keep the pressure up and contact your local legislators and the Governor’s office to advocate for critical education priorities:
- Increasing primary special education categorical aid to 60% sum sufficient, as recommended by the 2018 Blue Ribbon Commission and Governor Evers’ budget; and
- Providing an increase in General School Aids to reduce pressure on the local property tax and ensure stable resources for our public schools.
We will continue to monitor developments and share updates as more information becomes available. Please don’t hesitate to reach out if you have any questions.
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JFC Education Budget Fails Schools and Taxpayers — Action Needed
By Wisconsin School Administrators Alliance staff | June 17, 2025
Good afternoon,
Last week, the Joint Finance Committee (JFC) took up the two largest appropriations in the state budget: K-12 Education and Shared Revenue. Today, they are expected to take up the UW System and Corrections, with DCF, DOA, and other remaining agencies scheduled for Thursday. If this pace continues, the committee may finalize the budget as early as next week.
We need your voice—now more than ever. Despite a record state surplus, the majority party’s education budget proposal:
- Provides no increase in General School Aid
- Shifts the cost burden entirely to local property taxpayers
- Undercuts broad-based special education support
This proposal not only fails to meet the needs of our schools, it also raises local property taxes, contradicting the majority party’s public commitments.
Quick Summary of JFC Motion #48:
- General/Equalization Aid: No increase.
- Revenue Limits: $325 per pupil increase annually but funded entirely by local property taxes.
- Special Education Categorical Aid: $229 million over the biennium—reaching 35% reimbursement in FY26 and 37.5% in FY27 (currently 30.6%).
- High-Cost Special Education Aid: $54.6 million—50% reimbursement in FY26, 90% in FY27 (currently ~25.9%).
- Mental Health Services: Net reduction of $10 million for school-based services.
Action Steps:
Please contact your legislators (find yours here) and send a copy of your message to the Governor’s Office (govinfo@wisconsin.gov).
A sample letter from Vicki Bayer from GBAPS can be found here. Below are key talking points you may want to include as you personalize your email to your district:
Why This Budget Fails Wisconsin Schools and Taxpayers:
1. Fails to Adequately Fund Public Schools
- No increase in general school aids means the state is not offsetting costs—districts must rely on property taxes.
- Districts must fund the full $325 per-pupil increase with local tax dollars.
- No increase in per-pupil aid despite rising operational costs and inflation.
2. Undermines Special Education Support for All Districts
- Increases to Special Education Categorical Aid remain well below the needed 60% reimbursement.
- High-Cost Aid only helps about half of the districts, leaving many underfunded.
3. Increases Local Property Tax Burden
- The lack of state general aid shifts the funding burden to local taxpayers.
- This widens funding inequities between property-rich and property-poor districts.
4. Ignores Public Testimony and Expert Recommendations
- Hundreds of school leaders testified, and recommendations from the 2018 Republican-led Blue Ribbon Commission were ignored.
- This budget does not reflect the needs of educators, communities, or students.
5. Misses the Opportunity of a Record Surplus
- Wisconsin has a historic surplus but chose not to invest meaningfully in public education.
6. Short-Term Optics Over Long-Term Success
- The budget may appear fiscally conservative but weakens the future of Wisconsin’s students, workforce, and economy.
Thank you for your continued advocacy. Please take a few minutes to contact your elected officials today.
Best regards,
Dee Pettack
School Administrators Alliance (SAA)
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Urgent Budget Update
By Wisconsin School Administrators Alliance staff | June 13, 2025
The Joint Committee on Finance, led by Senator Howard Marklein (R–Spring Green) and Representative Mark Born (R–Beaver Dam), approved an omnibus motion outlining their proposed budget for K-12 education aids.
The proposal includes a modest increase in the special education reimbursement rate—rising to 35% in 2025-26 and 37.5% in 2026-27. Despite a Marquette Law School Poll where participants expressed 76% support for increased funding for Special Education Aid. The Budget also provides no increase in general school aids, meaning the full $325 per pupil revenue limit increase will be funded entirely through local property taxes. Additionally, the proposal includes no increase in per pupil aid and only minimal increases in mental health, transportation, and sparsity aids.
The committee moved to expand High-Cost Special Education Aid as a partial response to widespread calls for increased general special education funding. Under the proposal, High-Cost Special Education Aid would be funded at levels sum sufficient to provide 50% reimbursement in 2025-26 and 90% in 2026-27.
Thank you to WASB for this summary of the Governor’s recommended budget and the Joint Finance Committee’s proposal:
Categorical Aids
Special Education Aids
General Special Education
- Governor’s Request: Provide $542,949,100 in 2025-26 and $587,658,200 in 2026-27 for special education categorical aid and modify the appropriation from sum certain to be a sum sufficient appropriation paying 60% of eligible costs beginning in 2025-26 and annually thereafter. (currently 32.1%)
- Joint Finance Approved: Provide $77,229,600 GPR in 2025-26 and $151,744,700 GPR in 2026-27 for special education categorical aid. It is estimated that this funding would increase the proration rate to 35% in 2025-26 and 37.5% 2026-27.
High-Cost Special Education
- Governor’s Request: Provide $8,789,000 in 2025-26 and $9,720,000 in 2026-27 for high cost special education categorical aid and modify the appropriation from sum certain to be a sum sufficient appropriation paying 40% of eligible costs beginning in 2025-26 and annually thereafter. (currently 25.9%)
- Joint Finance Approved: Provide an increase of $14,606,700 GPR in 2025-26 and $39,970,300 GPR in 2026-27 for high cost special education categorical aid. It is estimated that this funding would increase the proration rate to 50% in 2025-26 and 90% in 2026-27.
Mental Health Programs
- Governor’s Request: Provide $83,888,000 annually above base level funding of $10,000,000 for school-based mental health services to expand the capacity of school districts and independent charter schools to offer mental health services and support to pupils, and rename the appropriation to “aid for comprehensive school mental health services.”
- Provide $62,752,000 in 2025-26 and $67,237,000 in 2026-27 above base level funding of $12,000,000 to expand aid for school mental health programs, and rename the appropriation to “aid for school mental health programs; pupil services professionals.”
- Provide $250,000 annually above base level funding of $250,000 to expand the peer-to-peer suicide prevention grant program and modify the program to increase the maximum grant award for the peer-to-peer suicide prevention grants from $1,000 to $6,000.
- Joint Finance Approved: Provide $10,000,000 GPR of one-time funding in 2025-26 and 2026-27 to expand aid for school mental health programs.
Sparsity Aid
- Governor’s Request: Provide $10,016,800 in 2025-26 and $10,236,800 in 2026-27 above base level funding of $28,614,000 for sparsity aid. Modify the program beginning in the 2025-26 school year to increase per pupil payment amounts from $400 to $500 if the school district’s membership in the previous school year did not exceed 745 pupils, and from $100 to $200 if the school district’s membership in the previous school year was between 745 and 1,000 pupils.
- Joint Finance Approved: Provide $896,000 GPR in 2025-26 and $1,116,000 GPR in 2026-27 above base level funding of $28,614,000 for sparsity aid, which would fully fund estimated eligibility under current law.
Transportation Funding
- Governor’s Request:
- General: Modify statutory language to increase the reimbursement rate for pupils transported over 12 miles to and from school in the regular school year from $400 to $450 beginning in the 2025-26 school year. It is estimated that the current funding level ($24.0 million GPR annually) would fully fund payments at the increased rate.
- High-Cost: : Modify the eligibility threshold for the high cost transportation aid program from 140% of the statewide average transportation costs to 135% of the statewide average beginning in the 2025-26 school year.
- Joint Finance Approved:
- General: Modify statutory language to increase the reimbursement rate for pupils transported over 12 miles to and from school in the regular school year from $400 to $450 beginning in the 2025-26 school year.
- High-Cost: Modify the eligibility threshold for the high cost transportation aid program from 140% of the statewide average transportation costs to 135% of the statewide average beginning in the 2025-26 school year.
General School Aids and Revenue Limits
General School Aid
- Governor’s Request: Provide $493,800,000 in 2025-26 and $699,900,000 in 2026-27 above base level funding of $5,581,190,000 for general school aids. The general school aids appropriation funds equalization, integration, and special adjustment aid. The bill funding would represent increases of 8.8% in 2025-26 and 3.4% in 2026-27 compared to the prior year.
- Return to inflationary indexing for revenue limit adjustments.
- In 2025-26= $334 per pupil increase; In 2026-27=$345 per pupil increase.
- Joint Finance Approved: No Increase
Low Revenue Adjustment
- Governor’s Request: Set the low revenue adjustment amount under revenue limits at $12,000 per pupil in 2025-26 and $12,400 per pupil in 2026-27 and in any subsequent school year. Also, beginning in 2025-26, delete the statutory provisions restricting otherwise-eligible districts from any low revenue adjustment increases for three years after a failed operating referendum.
- Joint Finance Approved: No increase
Per Pupil Aid
- Governor’s Request: Provide $45,238,600 in 2025-26 and $83,367,000 in 2026-27 to increase the per pupil payment from $742 in 2024-25 to $800 in 2025-26 and $850 in 2026-27 and each year thereafter.
- Also applied an additional 20% weight to students in poverty.
- Joint Finance Approved: No Increase
Early Literacy Initiatives
- Governor’s Request:
- Provide $50,000,000 in 2025-26 to replace unreleased funding appropriated for use in the 2023-25 biennium on a literacy program created under 2023 Wisconsin Act 20.
- Provide $7,045,200 in 2025-26 and $11,018,000 in 2026-27 to contract for literacy coaches and provide professional development to implement the requirements of the early literacy and reading improvement program created under 2023 Wisconsin Act 20.
Modify the program beginning in the 2026-27 school year to increase the maximum number of literacy coaches statewide from 64 to 100, the maximum number located within the boundaries of a first-class city school district from 10 to 16, and the maximum number in other school districts from 4 to 6. Additionally, modify the program to repeal the program the sunset date. - Provide $3,000,000 annually in a new appropriation for competitive grants to community-based nonprofit organizations to provide literacy tutoring, including high dosage tutoring, to pupils in five-year-old kindergarten to third grade who have not yet demonstrated the ability to read at grade-level.
- Provide $1,450,000 annually above base level funding of $2,151,000 in the appropriation for assessments of reading readiness to provide aid to local educational agencies to offset the costs of administering diagnostic assessments of early literacy skills.
- Provide $2,625,500 in 2026-27 to reimburse school boards and independent charter schools for costs incurred in the previous school year to provide required intensive summer reading programs to eligible pupils.
- Joint Finance Approved: Provide $250,000 annually above base level funding of $2,000,000 to support literacy tutoring services provided through the Wisconsin Reading Corps.
Choice, Charter, Open Enrollment
- Governor’s Request:
- Milwaukee: Provide $20,723,100 in 2025-26 and $34,248,300 in 2026-27 over base year funding of $313,658,100 for the Milwaukee private school choice program to reflect changes in pupil participation and per pupil payments under the bill. This would reflect an increase in pupil participation from 28,900 pupils in 2024-25 to an estimated 29,440 pupils in 2025-26 and 2026- 27. (increases of $392 and $395 to per pupil payments)
- Racine/Statewide: Provide $33,915,500 in 2025-26 and $47,105,400 in 2026-27 over base year funding of $275,299,900 for the Racine and statewide private school choice programs to reflect changes in pupil participation and per pupil payments under the bill. (increases of $392 and $395 to per pupil payments)
- SNSP: Provide $7,446,700 in 2025-26 and $8,493,300 in 2026- 27 above base level funding of $45,143,200 for the special needs scholarship program to reflect changes in pupil participation and per pupil payments under the bill. This would reflect changes in pupil participation from 3,000 pupils to 3,440 pupils in 2025-26 and 2026-27. Based on the increases in the per pupil aid and revenue limit adjustment provided in the bill, the per pupil payment under the program would increase from $15,409 in 2024-25 to $15,801 in 2025-26 and $16,196 in 2026-27.
- Independent Charter: The main appropriation for the program currently funds payments to charter schools that the City of Milwaukee, UW-Milwaukee, UW-Parkside, and the Waukesha County Executive contract to operate. The Administration estimates that 10,288 pupils in 2025-26 and 10,621 pupils in 2026- 27 will attend schools funded from this appropriation and that, based on the relevant provisions in the bill, the per pupil payment under the program would increase from $11,729 in 2024-25 to $12,121 in 2025-26 and $12,516 in 2026-27.
- Open Enrollment: Increases of $392 and $395 to per pupil payments
- General Provisions: Re-establish caps to enrollment for choice and charter programs. Link increases in payments for the programs to increases in the revenue limit.
- Joint Finance Approved:
- Under the motion, the various per pupil payments for the choice and charter programs would increase by $135 per pupil in 2025-26 and a further $128 per pupil in 2026-27 as a change to the prior year, in addition to the $325 annual increase resulting from the per pupil revenue limit adjustment under current law (the fiscal effect of which was included under previous Committee action). The following four items are reestimates for those payments.
- Milwaukee: Provide $3,968,400 GPR in 2025-26 and $8,080,200 GPR in 2026-27 as a re-estimate of sum sufficient funding in the appropriation for the Milwaukee private school choice program.
- Racine/Statewide: Provide $3,721,700 GPR in 2025-26 and $8,184,100 GPR in 2026-27 as a reestimate of sum sufficient funding in the appropriation for the Racine and statewide private school choice programs. Adjust GPR lapses by $3,679,900 GPR-Lapse in 2025-26 and $8,134,100 GPR-Lapse in 2026-27.
- SNSP: Provide $463,700 GPR in 2025-26 and $1,018,900 GPR in 2026-27 as a reestimate of sum sufficient funding in the appropriation for the special needs scholarship program. Adjust GPR lapses by $463,700 GPRLapse in 2025-26 and $1,018,900 GPR-Lapse in 2026-27.
- Independent Charter: Provide $1,386,800 GPR in 2025-26 and $2,796,300 GPR in 2026-27 as a reestimate of sum sufficient funding in the main appropriation for the independent charter school program. Adjust GPR lapses by $79,300 GPR-Lapse in 2025-26 and $163,500 GPR-Lapse in 2026-27.
Provide $303,600 GPR in 2025-26 and $626,400 GPR in 2026-27 as a reestimate of sum sufficient funding in the appropriation for the independent charter schools authorized by the Office of Educational Opportunity (OEO) in the UW System. Adjust GPR lapses by $303,600 GPR-Lapse in 2025-26 and $626,400 GPR-Lapse in 2026-27. - Open Enrollment: Increase the full-time open enrollment transfer amount by $1,578 per pupil in the 2025-26 school year, in addition to the indexing calculation.
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