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State Superintendent Dr. Jill Underly announced at Conrad Elvehjem Primary School in McFarland that she will propose a $4.3 billion increase in state aid to the Department of Public Instruction (DPI). Last budget cycle, DPI asked for a $2.5 billion increase, and the legislature approved approximately $1 billon. Of the $4 billon, $3 billion is allocated to special education aid reimbursements and general aid. She also included new proposals to the budget: $304 million to increase mental health services; $294 million to provide free school meals to all students in Wisconsin; $59.5 million to address workforce challenges; and $42 million for early literacy initiatives.
“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,” Dr. Underly 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.”
During the press conference, Dr. Underly highlighted the proposals below:
- $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.
Lawmakers weighed in on the DPI proposal:
Senate Minority Leader Dianne Hesselbein (D-Middleton): “We have that surplus because we haven't been spending money on the things we should, which is K-12 education. And that money is sitting there, and that is why we continue to go to referendum over and over and over again, because Republicans have chosen to underfund education.”
Assembly Speaker Robin Vos (R-Rochester): Speaker Vos said DPI’s proposal was not “serious” and “We have plenty of money to still invest in our priorities, but it’s going to be nowhere near what she proposed.”
View the Department of Public Instruction’s budget proposal here.
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