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Educators Say State Budget Will Shift More School Funding to Local Taxpayers

Friday, July 11th, 2025 -- 12:00 PM

(Corrinne Hess, Wisconsin Public Radio) In Wisconsin, public schools are primarily funded in two ways: property taxes and state money in the form of general school aid. 

According to Corrinne Hess with Wisconsin Public Radio, educators say the budget compromise reached last week by Gov. Tony Evers and Republican leaders, and their decision not to increase funding for general school aid, will shift more of the burden to local taxpayers.

The new state budget gives $1.4 billion to K-12 education over the biennium. That includes $500 million to special education by increasing the reimbursement rate from 32 percent to 42 percent in the first year and 45 percent in the second year.

But when the budget was signed on July 3, without an increase in general school aid, education leaders were surprised. They say while the increase in state support for special education will free up money for districts, it is not enough to solve budget problems caused by the strains of inflation.

According to the Wisconsin Education Association Council, 66 percent of school districts are set to lose state aid next year.  State aid for each district is calculated using a formula that includes factors like student enrollment, spending and the overall value of property in the district.

  • Act 20 literacy funds: After a Wisconsin Supreme Court ruling, Republicans released $50 million to support literacy initiatives. The budget also includes $37.1 million in the first year to provide grants to public and private schools to adopt literacy curriculum and pay for professional development. And  $1.4 million for early literacy assessments.
  • Universal free school meals: Not included. 
  • Student mental health: $300 million was proposed; $30 million was included.
  • Science teachers: $250,000 for professional development.
  • Vouchers: Private school payments remain with per-pupil payments increasing $174 in the first year and decrease by $25 in the second. In total, funding for vouchers increased $13.2 million in 2025-26 and $12.5 million in 2026-27.
  • High-cost special education: Reimbursement rate is increased from 26 percent to 50 percent in 2025-26 and 90 percent in 2026-27. 
  • Library aids: $36 million.
  • Holocaust Education Resource Center: The center would receive an increase of $300,000 above base-level funding of $200,000.

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