MCFARLAND, Wis. — State Superintendent of Public Instruction Dr. Jill Underly is proposing $3 billion in additional state funding to help Wisconsin’s underfunded public schools.
Her proposal would reduce the need for referendums and property taxes, offset costs for state-mandated special education services and increase per-pupil and general aid.
“These investments will significantly reduce the number of referendums for operating costs in local communities, by having the state step up to its responsibilities,” Dr. Underly said in a press conference on Monday, Nov. 11. “We will hold down local property taxes, while investing in education — it’s a win-win.”
Over 100 school districts including Milwaukee Public Schools held referendums this year in response to budget shortfalls. Meanwhile, Wisconsin ended the 2024 fiscal year in June with a $4.6 billion budget surplus.
Wisconsin law restricts how much state aid schools can access and how much they can spend. The state hasn’t adjusted revenue limits for property tax increases for 30 years, and stopped indexing revenue limits to inflation 15 years ago.
The state superintendent’s proposal would make per-pupil adjustments to revenue limits of $425 in 2026 and $437.75 in 2027, while limiting property tax increases to an average of 1.5% over the two years.
“We need to fix Wisconsin’s outdated school finance system, which is based in part on decade-old formulas that were never intended to adequately fund schools,” Dr. Underly said.
Special education services are mandated by state and federal law, but Wisconsin currently reimburses schools for about 32% of what those services cost.
Dr. Underly’s proposal would increase reimbursement to 75% in 2026 and 90% in 2027. She emphasized how this would help not only special education students, but all students by taking most of the financial burden off of school districts.
The Department of Public Instruction’s request for the 2025-27 Biennial Budget totals just over $4 billion, in addition to previously announced individual program requests like universal schools meals.
