State Superintendent Jill Underly announced she will propose a more than $4 billion boost in state aid to DPI, including raising the special education aid reimbursement rate.
The agency sought a $2.5 billion increase during the previous budget cycle, and the Legislature ended up approving just over $1 billion in additional state aid.
While speaking at a news conference at Conrad Elvehjem Primary School in McFarland yesterday, Underly proposed more than $3 billion to increase special education aid reimbursements and to increase per-pupil and general aid as part of the agency’s overall request.
The proposal adds to her previously announced budget components including: $304 million to boost mental health services; $294 million to provide free school meals to all Wisconsin students; $59.5 million to address workforce challenges; and $42 million for early literacy initiatives.
Underly noted the state’s surplus, currently at $3.5 billion, and said Wisconsin has a critical opportunity to invest in public education and reduce the number of referendums for local communities.
Last week, voters approved $3.4 billion in school district referendum requests, the highest total approved in a single election since at least 2000.
“The time is past due to invest in our schools, especially in this particular moment when we have a surplus and as federal pandemic-era relief funds expire,” she said. “The need is there, and we can provide sustainable funding for Wisconsin public schools by making changes to the way we fund our public schools.”
The Legislature’s Republican Joint Finance Committee co-chairs did not immediately respond to requests for comment on Underly’s announcement.
The Evers administration has a deadline next week to release revenue projections through the end of the 2025-27 budget and a summary of state agency budget requests. A WisPolitics check of agency requests posted at the Department of Administration website shows so far they’ve asked for more than $1.1 billion in additional state aid. That’s compared to the base year doubled. That’s double what the agency received in the second year of the current biennium and is traditionally used as the starting point for budget work.
DPI hasn’t yet released full details of its proposal. But adding in $4 billion to what’s already been requested puts the overall ask from agencies at north of $5 billion.
Some of the investments Underly proposed yesterday include:
- $2 billion to increase the special education aid reimbursement rate from about 32% to 75% in fiscal year 2026 and 90% in fiscal year 2027 and restoring revenue limit indexing to inflation.
- $1 billion to make per-pupil adjustments to revenue limits of $425 in fiscal year 2026 and $437.75 in fiscal year 2027, with property tax increases limited to an average of 1.5% over the biennium.
- $212 million to raise per-pupil aid payments from $750 to $800 in fiscal year 2026 and $850 in fiscal year 2027, including an additional 20% for students in poverty.
- $20 million for Out-of-School-Time grants to help reduce chronic absenteeism.
- $10 million to help schools cover special education costs for children with disabilities in early childhood education.
