“It really blew up our world,” public schools advocate Heather DuBois Bourenane says of the failed school funding and tax-cut deal that Republican legislative leaders and Gov. Tony Evers trumpeted as a “blockbuster” before it fizzled in the state Senate, ending in finger-pointing and recriminations. 

“It was the first time the carrot had been dangled so close to public schools,” DuBois Bourenane says, describing the “moment of utter euphoria” when her group, the Wisconsin Public Education Network, made up of parents, teachers and school officials from every corner of Wisconsin, first heard about the deal. “It seemed like what we’d been fighting so hard for for so long was finally about to happen.”

But then DuBois Bourenane and the other members of her organization got the details.

The funding for special education was not locked in at 50% in the second year of the plan as they’d hoped. Instead of a “sum-sufficient” or guaranteed allocation to cover a set percentage of costs, the 50% was an estimate. If costs go up, that percentage would go down. As for the $300 million increase in general aid to schools, as a Legislative Fiscal Bureau analysis explains: “the additional aid would provide property tax relief but not additional resources for school districts.”

Tax cuts made up the lion’s share of the deal — about 80% of the total $1.8 billion. Those included property tax cuts, interest earnings reductions, no tax on tips and overtime and, biggest of all, an $870 million income tax rebate that would have put $300 checks in the mail to people who earned enough money to qualify. The Legislative Fiscal Bureau projected that the deal would leave the state with a nearly $3 billion deficit. 

Most of that deficit would be caused not by school spending, but by what Dubois Bourenane describes as a wasteful tax giveaway. “What the heck?” she says. “You’re wasting the surplus while pretending to fix the thing [school funding] you broke the worst!”

School funding in Wisconsin was broken by former Republican Gov. Scott Walker’s historic budget cuts. The damage has compounded each year for more than a decade and a half as school budgets haven’t kept pace with inflation. In such dire circumstances there were, DuBois Bourenane acknowledges, public school advocates who felt anything was better than nothing. But the two-year stopgap deal Evers and Republican leaders reached did not come close to fixing the long-term problem. 

On the bright side, says Dubois Bourenane, at least politicians in both parties have stopped pretending the last several budgets actually funded schools sufficiently. The need to address the funding crisis in Wisconsin public schools has become a bipartisan talking point. Even Republican gubernatorial candidate Tom Tiffany (who, as a legislator, voted for former Walker’s massive cut to schools) lists it as a top priority.

A recent Marquette poll showed that 80% of Wisconsinites who were contacted about the rushed deal right after it failed, with little time for discussion or analysis, and asked if they would like to receive $300 in the mail from the state, said yes. But voters deserve a full, public discussion of their options, and whether tax rebates worth $278 to most individual Wisconsin tax filers and $574 to most married joint filers, according to the Legislative Fiscal Bureau, are worth putting the state in a $3 billion hole with no long-term fix for the school funding crisis. 

DuBois-Bourenane wishes the Legislature would take up a bill introduced in March that would guarantee a 60% special ed reimbursement from the state, easing the burden on local property taxpayers, who have been filling the hole by passing local referendum requests at record rates, raising their own taxes as the state reneges on its obligation to fund schools. 

But couldn’t committing the state to once again cover the real costs of public education put us in a deficit? Maybe, says DuBois Bournenane. “We’d have to cut money in other ways. But we would stop balancing the budget on the backs of children” — instead of acting as though the state can always avoid paying its biggest bill.

“There’s not really a surplus here,” she adds. “There’s just a pool of money that used to be used to fund public schools that now is not used at all.”

That’s the pool of money Walker “saved” by cutting funding for schools, and Evers and Republican leaders wanted to dole out over the next two years — 80% of it in the form of tax cuts and 20% to schools. 

She finds Evers’ public expressions of frustration with Democrats for not supporting his deal mystifying. “It seems to me it’s a predictable problem he could have solved in advance by consulting with his colleagues on the deal before moving forward.”

But most of all, for public schools, kids and communities across Wisconsin, the whole thing was “incredibly cruel,” she says.

“If we were being led by adults they’d laugh it off and get back to the table and get a new deal,” she says. Instead, the long-term problems threatening public education in Wisconsin continue, with no real fix in sight. 

“I know it doesn’t look like it from a distance, but it’s not about the money,” DuBois Bourenane says. “It’s about are the kids OK? Can we meet their needs?”

The answer, coming from districts that are facing steep cuts, growing class sizes, fewer extra curricular activities and school consolidations and closures, is no. The kids are not OK.

Compounding the damage is a looming crisis that was not part of the budget deal discussion at all. In 2026 all caps come off Wisconsin’s school voucher program. An unlimited number of families will be able to send their kids to private schools at taxpayer expense, and the funding for that program, under a law signed by Walker and supported by Tiffany, comes off the top of state funds. As school voucher programs have steadily grown in Wisconsin, most new students enrolled come from families that already had their kids in private school. The potential explosion in new families joining that group will put the current school funding crisis in a long shadow.

Still, DuBois Bourenane is optimistic Wisconsin can fix the problem. Her group is part of a lawsuit charging the state with failing its obligation to provide a “free, adequate public education” to all Wisconsin children. 

She believes the problem could be solved right now, and that “it’s irresponsible to walk away from the table” after the budget deal disaster. And that the pride and anger of the politicians who don’t want to keep trying is hurting Wisconsin kids.

But she also sees a huge opportunity for voters to put pressure on the politicians running for office this fall to change the attitude in the statehouse and “elect people with more energy to do things for our communities.”

“I don’t think all is lost. We will fix it in the long run. But we could fix it now,” she says. “And we’re choosing not to.”

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With Republicans touting it as a bipartisan deal, the $1.8 billion special education funding and tax cut bill negotiated by a pair of GOP leaders and outgoing Democratic Gov. Tony Evers passed the Legislature’s budget committee on a 12-4 vote Tuesday, with no Democratic support.

The Joint Finance Committee’s Democrats charged the bill didn’t do enough for schools or taxpayers while spending down the state surplus for short-term benefits.

About 20 minutes after the committee vote, Evers’ office sent out a press release in which the governor called on the Legislature to swiftly pass the measure he’s been calling a “blockbuster” since it was unveiled Monday. The Legislature is scheduled to meet Wednesday in a special session to debate and vote on the measure.

Attached to the email was a table listing more than 50 Wisconsin school districts and the additional special education money they’ll receive from the state if the deal passes.

The legislation will add $85 million to reimburse local school districts for the cost of special education in the current school year and $230 million for the 2026-27 school year. A Legislative Fiscal Bureau memo estimates the additional funding will raise the state’s reimbursement rate this year to 42.7% and for 2026-27 to 50%, but added that the actual rate “could be higher or lower, depending on final prior year aidable costs.”

When Wisconsin’s 2025-27 budget was signed in July schools were told they would get 42% of their special education costs reimbursed for the current year and 45% in 2026-27. But in November the Department of Public Instruction announced that special ed costs and enrollment had both increased, so the first round of payments would cover 35%.

Along with the additional special ed funding, the new bill will spend $302.5 million on state aid to public schools. Because of state revenue limits on school districts, the new state aid “would provide property tax relief but not additional resources for school districts,” according to the Legislative Fiscal Bureau memo.

The bill gives the state technical college system an additional $50 million in state aid starting in the 2026-27 school year, also to replace property tax revenue, not increase trade school budgets.

The legislation includes a $300 state income tax rebate for individual taxpayers whose state tax bill was at least that much in 2024.

It also would make tip income as well as overtime pay exempt from state income taxes, mirroring federal tax policies that have been enacted under President Donald Trump. While the federal exemptions expire at the end of 2028, the state exemptions don’t have a sunset.

So far, lawmakers in Evers’ own party have greeted the measure coolly. Finance committee Democrats on Tuesday welcomed the increase in special education money but said it wasn’t sufficient to meet the needs school districts have for more resources.

“I’m a no on this plan, not because I don’t appreciate education funding,” said Rep. Deb Andraca (D-Whitefish Bay), a former teacher, during the JFC’s hour-long discussion before the committee vote.

“I want our schools to get the predictable, reliable, education funding, indexed to inflation that they deserve without having to sue all of us,” Andraca said, referring to a pending lawsuit challenging the state’s school funding formula.

But State Rep. Mark Born, the JFC Assembly cochair, said the measure deserves to be enacted.

“There’s really nothing negative in the bill,” Born told the committee. “The bill gives money to special education, right? The bill gives lasting property tax relief to taxpayers of Wisconsin. The bill gives lasting income tax relief to the taxpayers of Wisconsin. And yes, the bill also gives a one-time immediate rebate check to taxpayers in Wisconsin. The bill actually helps people now.”

Rep. Tip McGuire (D-Kenosha) and Sen. Kelda Roys (D-Madison) both made  pointed references to the bill as the product of three retiring elected officials — “three lame ducks,” in McGuire’s words. Along with Evers, a Democrat, Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu, both Republicans, are leaving office at the end of 2026.

None of the Democrats named Evers in their criticism of the bill, while Republicans touting the legislation invoked the governor several times.

“I think what we have before us is really balanced governing,” said Rep. Shannon Zimmerman (R-River Falls). “Gov Evers, working with majority party leadership, came together. Nobody got everything they wanted, but there’s a lot of good in this bill.”

Democrats emphasized what they said were the bill’s inadequacies, such as not guaranteeing “sum-sufficient” special ed funding that would fully meet the actual cost. Instead it designates a “sum-certain” amount, meaning there is a limited pot of money available, regardless of expanding need.

“It fails our schools,” said McGuire. “Our schools aren’t going to be getting the resources fully that they need. They’ve been struggling for 15 years under legislative Republican leadership.”

Roys — who is seeking the Democratic nomination to run for governor — referred to the presumptive Republican gubernatorial nominee’s opposition to the deal, although in support of a contrasting policy agenda.

“I find myself shocked to be with Republican Tom Tiffany,” Roys said. “Shocked to be agreeing with Republican [Sen.] Steve Nass, that this is a deal that does not help us fix the significant long-term structural problems we have — namely the way that we have robbed our children of their futures in defunding public education.”

Roys and McGuire both predicted a coming economic shakeup. 

“There’s a presumption that this bill has, and that is that Donald Trump’s economy will succeed,” McGuire said. “And I think that I am among the 70% of Americans right now who do not believe that that’s true.”

Wisconsin, he argued, should prepare for a future that includes an economic downturn in the next six or nine months rather than spending too much of the state’s projected $2.37 billion surplus.

Born mocked those concerns. “We cut taxes again and you say, ‘Oh, you’re going to break us. You’re going to be bankrupt. Structural deficit. Oh my goodness. The sky is falling,’” he said. “Oh, next budget. More surplus, more Republican leadership on the budget, more partnering with our private sector partners to grow Wisconsin’s economy.”

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Gov. Tony Evers, Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Devin LeMahieu (R-Oostburg) — Wisconsin’s three leaders all of whom are set to retire this year — announced a $1.8 billion deal Monday to provide additional funding to Wisconsin schools for general aid and special education and tax relief in the form of rebate checks, property tax cuts and the elimination of taxes on tips and overtime. 

The deal is the culmination of months of negotiations on how to use the state’s projected surplus to provide additional funding to schools and tax relief to Wisconsinites.

Negotiations kicked off at the beginning of this year after the general fund surplus was projected to be $2.37 billion at the end of the biennium, June 30, 2027 — about $1.5 billion higher than expected. However, they fell apart as Evers and Senate and Assembly leaders argued over the form that a proposal should take and a deal was not reached before the end of the regular legislative session. 

According to a Department of Administration and Department of Revenue memo released Monday, the state’s general fund tax collections are tracking between $300 million and $350 million above the January estimates. 

Evers said the school funding was the biggest win in the bipartisan agreement. The deal includes $300 million for special education funding and $300 million for school general aids. 

“I think money for schools, that’s obviously the most important thing for me, but again, we’re in a position to actually compromise and have Republicans and Democrats, at least in the leadership level, getting something done,” Evers said. 

Evers spoke to reporters during a visit to Barneveld middle and high schools where he spoke to students and staff about their mental health initiatives on Monday morning. He was there to highlight investments that have been made in schools. He noted that Barneveld is a good school district and said the deal reached by him and lawmakers would “make them an even better” one. 

About $85 million will be used to guarantee schools get 42% of their special education costs reimbursed for the 2025-26 school year and the remaining funds will be used to guarantee a 50% reimbursement rate in 2026-27. 

The 2025-27 state budget promised a 42% special ed reimbursement rate in the first year of the budget and a 45% rate in the second year, but the funds set aside were not adequate to meet those rates. 

The state’s special education reimbursement is currently a “sum certain” appropriation, meaning that there is a fixed pot of money available for the costs. If schools’ costs exceed the amount set aside, then the rate of reimbursement is lower. A change to a sum sufficient appropriation would ensure that the amount available is enough to cover the promised rates. 

Evers said negotiations couldn’t get to a sum sufficient appropriation for special education funding, but that negotiators used figures that should get the state to the promised rates. 

“Next budget people have to ensure that it is sum sufficient, but we did not get across that bridge, unfortunately,” Evers said. “Look, we know what the numbers are, so it’s going to be 50[%].”

The deal will also increase funding for pupils participating in the choice, charter, special needs scholarship  and open enrollment programs by $16 million. 

The investment into general school aids comes after lawmakers declined to provide any new funding in the 2025-27 state budget and property taxpayers across the state saw increases in December. The $300 million is intended to help buy down school property tax levies, although the amount will not completely cover the $325 per pupil in additional school revenue limit authority that school districts have as a result of a previous Evers budget veto.

The agreement also includes $50 million meant to serve as property tax relief aid for the Wisconsin Technical College System beginning in 2026-27. 

The Wisconsin Association of School Boards said in a statement that it was encouraged by the deal’s investments in special education and general aids, but cautioned that it would not completely fix schools’ financial issues.

“While these resources are important for public schools struggling with a declining level of state investment, it will not solve the longer-term problem,” WASB said. “The state has shifted away from providing inflationary increases in spendable resources for schools for 17 years. One state surplus deal cannot reverse that trend by itself.”

The Joint Finance Committee is scheduled to take up the proposal on Tuesday, and it’s expected that the full Assembly and Senate will take up the proposal on Wednesday in a special session. Ever signed an executive order for the session Monday afternoon. 

Vos said in a statement that legislators would be sending the surplus  “back to help families with the pressure of increasing costs, reward hard work, and to continue investing in schools to help stabilize rising property taxes.”

LeMahieu said Repiblicans’  top priority was to send the surplus back to “hardworking taxpayers across the state.” 

“This deal will provide immediate relief with $600 in surplus refund payments and provide permanent property and income tax relief for Wisconsin families,” LeMahieu said. 

The deal will also provide $300 tax refunds for individuals and $600 refunds for married joint filers. Tax relief in this form was originally a Senate Republican proposal, though they had proposed rebates of $1,000 for married joint filers and $500 for individuals.

The deal also includes the elimination of taxes on tips and overtime — two proposals that Evers initially vetoed. The proposal will align state with federal law, though the state proposals differ as they are permanent changes rather than having a sunset date in 2028. 

Evers expressed confidence that there are enough votes to get the deal through both houses and to his desk. 

“I need a majority of each house, and whether that’s all Democrats, all Republicans or a mix, I don’t care,” Evers said. “I think it would be hard for anyone to say I’m not in favor of this…[when] as a result, my local school district gets screwed. I think that’s going to be a hard position for people to take.” 

It’s already clear that not every member is on board as Democratic and Republican Senate lawmakers express concerns and opposition to the deal in statements.

Senate Minority Leader Dianne Hesselbein (D-Middleton) said in a statement that from her perspective there is no deal. She said her caucus needs to see the full details of the “expensive proposal” before they say more. 

“Three men who will not be in elected office next year have come up with this proposal which Senate Dems will be reviewing,” Hesselbein said. “Any proposal must pass both houses of the legislature and no one knows if Republicans have the votes to pass it.”

Assembly Minority Leader Greta Neubauer (D-Racine) has not responded to a request for comment. 

Sen. Steve Nass (R-Whitewater), who is also retiring this year, said in a statement that he “can’t support another bad deal cut by leaders that will never face the voters again.” 

With an open race for governor and control of the state Legislature up in the air, some expressed concerns about leaders deciding to spend down the surplus when they won’t be around to deal with the consequences next year. 

Democratic candidates for governor, Sen. Kelda Roys (D-Madison) and former Department of Administration Secretary Joel Brennan criticized the way lawmakers negotiated the deal and the contents of the deal. 

“Budgets are difficult to negotiate and demand tough decisions, and that’s why I believe they must be done in public with input from Wisconsinites. It’s very disappointing that this one wasn’t, and we should expect all candidates for governor to commit to an open process,” Brennan said. “I’m all for putting money back in people’s pockets, giving our schools a much-needed boost, and providing some property tax relief, but this deal misses the mark in many other ways. It does nothing to address the cost-of-living crisis that is still crushing Wisconsin families on things like child care, health care, and gas and utility prices.” 

Roys said the leaders had come to a “backroom” deal.

“This latest deal is the height of fiscal irresponsibility,” Roys said. “It spends a projected ‘surplus’ before it’s in the bank, even though that projection was estimated before Trump’s attack on Iran that disrupted our economy and caused gas prices to skyrocket. It gives a little one time money to public schools while permanently cementing unfairness in our tax structure. Worst of all, it blows nearly a billion dollars on an election year gimmick to send out rebates, squandering the ability of a new Democratic majority to make the long-overdue investments in our kids that they deserve.”

The critique on the transparency in the negotiation process comes after Lt. Gov. Sara Rodriguez, who is also campaigning for the nomination, was recorded saying she would craft the state’s next budget “behind a curtain.”

Evers told reporters that the negotiations with lawmakers was typical process.

“Well, sometimes you do things behind the curtain,” Evers said. “Leadership both from my staff and others on the other side met on a regular basis, and we kept others informed about that. Now, if… [Roys is] angry because we didn’t involve every legislator prior to, that doesn’t happen with a regular budget, too. So if she’s going to be governor, she needs to get used to it.” 

He continued: “If she’s not going to support it, my question would be, ‘How do you run for governor of the state of Wisconsin and say to your schools, well, you know, this money of 42% and 50% for special education, I’m against that?’ That’s a tough one to run against.”

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Republican lawmakers want a lawsuit challenging the state’s school funding formula as unconstitutional dismissed, according to court filings. 

The lawsuit challenging Wisconsin’s current school funding system was filed in February by Law Forward, a public interest law firm, in Eau Claire Circuit Court. The progressive legal group filed it on behalf of a group of school districts, parents, teachers, students and two advocacy organizations, the Wisconsin PTA and the Wisconsin Public Education Network (WPEN). The suit argues that the state Legislature is not fulfilling its constitutional obligation to provide a “sound basic education” under the current school funding formula.

GOP lawmakers, including Assembly Speaker Robin Vos (R-Rochester), Senate Majority Leader Devin LeMahieu (R-Oostburg) and members of the Joint Finance Committee, called the lawsuit “meritless” in their filing and said that the majority of questions asked in the lawsuit have been previously answered in previous court cases, including in the state Supreme Court’s Vince v. Voight decision. That 2000 lawsuit found that the state’s school funding formula was constitutional. 

“For all of plaintiffs’ sky-is-falling assertions, the school finance system that plaintiffs challenge here is the same system that the Wisconsin Supreme Court upheld against similar (indeed, mostly identical) constitutional claims in Vincent v. Voight,” the filing states. “That system, Vincent explained, complies with the Wisconsin Constitution because it affords every student the opportunity to obtain a constitutionally adequate education. The Supreme Court reached this conclusion notwithstanding various complaints relating to test scores, school facilities, teacher staffing, and the like — complaints that are materially indistinguishable from those that Plaintiffs raise here.”

The lawmakers said the plaintiffs in the suit are asking the judiciary to take over the Legislature’s constitutional role in determining funding for primary and secondary education, even as the Legislature has fulfilled its constitutional responsibilities by enacting a comprehensive school finance system for the state’s public schools. 

The new lawsuit argues that declines in student proficiency for Wisconsin’s reading and math test scores are the result of declining investments in schools. It also argues that the growth of the state’s school voucher programs, which use state money to cover the cost of private school tuition, have contributed to declining funding for Wisconsin public schools.

The lawsuit asks the court for a declaration that the Legislature hasn’t fulfilled and cannot “shirk” its constitutional obligation to fund schools at a sufficiently high level to “ensure that every Wisconsin student has an equal opportunity to obtain a sound basic education that equips them for their roles as citizens and enables them to succeed economically and personally in a tuition free public school where the character of instruction is as uniform as practicable.” It calls for the current funding system to be ruled invalid.

Jeff Mandell, co-founder of Law Forward, called the motion to dismiss a “predictable attempt to avoid accountability” in a statement.

“We filed this lawsuit because families, educators, and communities across Wisconsin are seeing firsthand that the current system is not meeting that promise — forcing schools to rely on referendums, widening inequities, and leaving too many students without the resources they need,” Mandell said. “We maintain that this case deserves to be heard and are confident that the court will agree.”

The lawmakers also argue in the filing that the five school districts named in the suit, including the Adams-Friendship Area School District, the School District of Beloit, the Eau Claire Area School District, the Green Bay Area Public School District and the Necedah Area School District, should be dismissed from the case, arguing that they lack standing to challenge the constitutionality of the school finance system as a political subdivision of the state.

The lawmakers argue that the issues the plaintiffs pointed to in the lawsuit are not sufficient evidence of the state not upholding its constitutional obligation.

The lawsuit specifically points to the increasing reliance of Wisconsin school districts on asking voters to help them keep up with operating costs by increasing local property taxes through ballot measures (with varying results) as well as the decline in the state’s special education reimbursement rate.

The state currently picks up a little more than one-third of special education costs, despite the state budget promising to cover 42% of costs this year. The Necedah Area School District, which recently failed to pass a  referendum in April, has diverted all of its revenue from its previous operational referendum requests, about $6.6 million, to its special education fund. Meanwhile, the special education reimbursement rate for private voucher schools is 90%. 

“The Wisconsin Constitution makes clear that localities are expected to cover a significant portion of the cost of funding public schools,” the Republicans’ filing states. “That some school districts have had to use some of their own general education funds to cover the costs of special education is not constitutionally significant in the absence of any plausible allegations that any student has been deprived of the opportunity to obtain a sound basic education. And as for districts’ need to use referenda to exceed the revenue limits here, this too is constitutionally irrelevant.” 

The Legislature appropriated more than $7 billion in school aid in the 2024–25 fiscal year, the Republican filing noted. 

Democratic lawmakers on the Joint Finance Committee submitted their own filing, which was supportive of the lawsuit. 

“A constitutional promise is not optional,” the lawmakers wrote. “Wisconsin children cannot receive one level of educational opportunity in communities that can raise and pass local referenda and another in communities that cannot.”

The lawsuit also lays out how the state’s private-school choice system, which was launched in the 1990s and has grown exponentially over the years, has contributed to the erosion in  funding for public schools. There are four distinct school voucher programs in the state: the Wisconsin Parental Choice Program, the Milwaukee Parental Choice Program, the Racine Parental Choice Program and the Special Needs Scholarship Program. Wisconsin is paying about $700 million this year for more than 60,000 students to participate in the voucher programs.

Republican lawmakers rejected the assertion that the choice programs are related to the lawsuit’s claims.

“This is a baseless attempt to tar these longstanding, alternative educational offerings that are both highly effective and extremely popular across the State,” the lawmakers stated. 

The Wisconsin Institute for Law and Liberty on behalf of parents and School Choice Wisconsin Action are also seeking to intervene in the case as are parents represented by EdChoice Legal Advocates, a school choice litigation firm.

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