Republicans pass schools budget, tax cuts; Dems say special ed increase far from enough
MADISON, Wis. (CBS 58) -- Republicans on the state's budget-writing committee on Thursday, June 12, passed their versions of several key sections of the next two-year state budget.
The subject that drew the most traffic at the state Capitol was the special education reimbursement rate. Currently, Wisconsin covers about 33% of a school district's special education costs.
In his proposed budget, Democratic Gov. Tony Evers proposed increasing that rate to 60% at a cost of $1.13 billion.
Republicans on the Joint Finance Committee have scrapped Evers' budget, and on Thursday, committee co-chairs State Rep. Mark Born (R-Beaver Dam) and State Sen. Howard Marklein (R-Spring Green) defended their plan to increase the reimbursement share to 37.5% by 2027, a total of $901 million less than the governor's plan.
"The budget has to be right-sized to what's affordable," Born told reporters. "The governor's budget is always reckless spending the state can't afford, and so, we're choosing to make key investments in priorities, and these investments today will be some of the largest- they'll be the largest investments you'll see in the budget."
Democrats joined special education advocates earlier in the day in calling for a 60% rate. School administrators across the state have said more state help with special education costs would free up more money for other needs. In recent years, Wisconsin has seen a record-high number of school districts go to referendum,
One of the advocates speaking was Erica Kochanski, a Waukesha parent whose 15-year-old daughter is autistic. Kochanski said she wanted her child to attend public school, but class sizes were so big, her daughter could only find a comfortable setting in a private school.
Kochanski maintained more special education funding would allow districts to add staff, lowering class sizes in the process.
"Having 30-plus kids in a classroom, plus educators, is just not manageable," she said. "And so they end up being pulled out of the classroom, which is the opposite of inclusion. It's the opposite of what we want to happen in our schools."
Republicans pointed to high-cost special education, where they increased the rate of state coverage to 50% in 2026 and 90% in 2027. Democrats countered that share of funding only applies to 3% of Wisconsin's special needs students.
"We cannot let Republican legislators take credit for increasing only the high-cost special education reimbursement rate, which would only address a miniscule portion of the need," State Sen. Jodi Habush Sinykin (D-Whitefish Bay) said. "They cannot do a victory lap for doing next to nothing."
Republicans did not add to general student funding, as districts already gained the ability to raise property taxes through Evers' line-item veto in the 2023 budget that enacted a 400-year tax increase that would ensure consisted funding boosts for school districts.
More tax cuts coming
The education funding dispute highlights a fundamental difference in how the parties view Wisconsin's finances.
Republicans said the state cannot afford to go higher than 37.5% on the special education reimbursement rate. That might well be true without accounting for the state's surplus of more than $4 billion.
Conservatives maintain the surplus is a sign of an overtaxed public, and they believe that money should be returned in the form of tax cuts. Democrats see the surplus as a golden opportunity to provide more aid to education and child care services.
Republicans on the committee passed a tax plan that will provide additional savings on income taxes, as well as a break on what retirees have to pay.
The GOP plan puts more people in the second-lowest of four tax brackets, which pays a 4.4% income tax. Currently, married couples pay that rate on up to $38,000; income beyond that amount is taxed at 5.3%.
Republicans voted to instead tax income up to $67,000 at 4.4%. For married couples making that much and more, it would amount to about $600 in annual savings. Single and separate filers would save about half that amount.
It's unclear whether Evers will sign this budget, although in his first three budget cycles as governor, Republicans completely rewrote his plan. Evers then signed those budgets while using his line-item veto powers to eliminate provisions he opposed, including the move to enact a 400-year property tax increase to boost school funding.