Relating to: an income tax subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus refund payments; increasing funding for special education and school age parents programs; state aid to technical colleges and the technical college district revenue limit; and making an appropriation. (FE)

Wisconsin's state Assembly has refused concurrence on a bill aimed at boosting K-12 school aid and special education funding, dealing a setback to public schools already strained by shortfalls. The measure, which sought to increase equalization aid by nearly $446 million for the 2026-27 school year and phase special education reimbursements up to 90 percent, fell short in a 15-18 vote, according to the Wisconsin State Legislature. Educators hailed it as a step toward fairness, tying revenue limits to inflation and creating teacher recruitment grants.

The push comes amid ongoing frustration with the 2025-27 state budget, which promised 42 percent reimbursement for special education costs in the first year but delivered just 35 percent initially, per the Department of Public Instruction. Public schools, serving most students with disabilities, get capped aid while private voucher programs receive 90 percent coverage without federal compliance requirements. This forces districts to divert general funds, exacerbating zero growth in base aid and rising costs.

For Milwaukee residents, the stalled bill hits hard: Milwaukee Public Schools face deepening deficits, potential layoffs, and program cuts that could widen achievement gaps in high-needs communities. With two-thirds of districts statewide poised to lose aid, local families risk larger class sizes and reduced services for special needs children.

Lawmakers may revisit the bill in a special session or amend it before the budget cycle ends, but without action, schools brace for another year of fiscal pressure.