Madison, WI – Today, Assembly Republicans announced a plan to utilize the state’s $2.3 billion surplus. The proposal, unveiled during the pre-session press conference, takes a comprehensive approach that addresses the state’s financial priorities while returning money to taxpayers.
Highlights of the plan include an additional $200 million in special education funding for schools. Under the proposal, the projected reimbursement rate would increase to 42% in fiscal year 2026 and 45% in fiscal year 2027. Schools would also receive $500 million via the school levy tax credit. This increase in funding would reduce schools’ reliance on local property taxes, providing relief to Wisconsin property taxpayers.
The proposal also includes a $1,000 rebate for married couples filing jointly and $500 for individual filers; $10 million in disaster relief for households and $20 million for businesses affected by last August’s flooding; and an income tax deduction of up to $300 for eligible educator expenses.
“Special education funding has been one of the most actively discussed issues this legislative session. Despite the largest increase in special education funding in state history, $500 million, we were unable to reach the original 42% reimbursement rate included in the initial 2025–2027 biennial budget,” said Rep. Duchow. “I am pleased to see a proposal that responsibly utilizes this surplus by supporting our schools and returning money to hardworking taxpayers.”
The draft proposal was outlined in a letter sent Sunday evening by Assembly Speaker Vos and Senate Majority Leader LeMahieu to Governor Evers. The Legislature now awaits the Governor’s response. A copy of the letter is attached for reference.
