Special education reimbursement funding would reach 50% under a deal struck Monday by the Evers administration and Republican leaders. In addition to the largest increase to the state’s special education reimbursement rate in Wisconsin history, the bipartisan deal provides an additional $50 million in property tax relief and eliminates income taxes on cash tips and overtime pay.
The deal also returns more than $850 million of the state surplus to taxpayers, including $600 million through rebate checks that could arrive in mailboxes by fall. Both sides took victory laps following the announcement after months of negotiations.
“We’ve proven time and again that, here in Wisconsin, we’re capable of finding common ground and working together to get good things done for the people of our state, and the bipartisan compromise we’re announcing today is yet another example,” Gov. Tony Evers said. “I’ve always said that what’s best for our kids is what’s best for our state — it’s why it’s been important to me throughout this process that we make sure our kids and our schools have the resources they need while also lowering property taxes and giving working families a little breathing room in their household budgets.”
“Republicans have fought hard to control spending, and now we have a sizable budget surplus,” Assembly Speaker Robin Vos said. “We’re sending it back to help families with the pressure of increasing costs, reward hard work and continue investing in schools to help stabilize rising property taxes.”
Rep. Joel Kitchens said the deal is good news for local school districts that have had to pay a larger share of special education costs, which can drain general education funds.
Kitchens added that all school districts, including Gibraltar and Washington Island, which previously received no state aid, will now receive $300 per student in education funding.
The bipartisan deal is set to be taken up by the Wisconsin Legislature’s Joint Finance Committee on Tuesday, May 12, 2026. The Wisconsin Assembly and Senate are expected to take up the proposal Wednesday, May 13, 2026. Evers anticipates signing the proposal as early as next week.
