(The Center Square) – Wisconsin Department of Public Instruction Superintendent Jill Underly said she plans to ask for more than $4 billion in new state spending on the state’s schools, which was termed an “additional $3 billion” in the upcoming 2025-27 biennial budget.
The figures are just a request at this point before Gov. Tony Evers offers his proposal and then legislative budget writers in the Republican-led legislature begin their process.
Underly’s proposal includes increasing the state’s reimbursement rate for special education expenses from the current 32% to 75% in financial year 2026 and 90% starting in 2027 at a cost of $2 billion over the two-year budget.
Those reimbursement rates are something Madison Metropolitan School District Superintendent Joe Gothard pointed to as his district asked for two referendums worth $600 million that were approved on Nov. 5.
He said MMSD is estimated to pay $66 million of its general fund this year to cover Individual Disabilities Education Act costs the state does not cover, saying that the federal government should cover 40% and states should cover 60% of the program.
“The department’s policy position is clear — the state should reimburse 90% of special education costs for local schools,” Underly said. “These are mandated services and schools need the help. Our proposal puts us on a path to achieve that goal in the coming years.”
The proposed increases include some already made public by Underly including $304 million for youth mental health, $294 million for universal free meals, $59.5 million for recruiting and retaining educators and $42 million for early literacy initiatives.
Underly has pointed to the state’s $4.6 billion general fund balance after last fiscal year as a way to fund the spending.
“Jill Underly’s proposed DPI budget would eat up 65% of the state’s budget surplus, all while allowing property taxes to continue to go up,” wrote Kyle Koenen, Policy Director at the Wisconsin Institute of Law and Liberty. “We fund students at approximately $20k per student on average. When is it enough?”
The Underly budget proposal includes a proposal to increase the per-pupil state funding limit by $425 in fiscal 2026 and $437.75 in fiscal 2027 at a $1 billion cost over the two years.
She also proposes per-pupil categorical aid payment increases from $750 to $800 in fiscal 2026 to $850 in fiscal 2027 at a two-year cost of $212 million.
“These investments will significantly reduce the number of referendums for operating costs in local communities, by having the state step up to its responsibilities,” Underly said. “We will hold down local property taxes, while investing in education — it’s a win-win.”
