State Reimbursement Falls Seven Points Below Estimate

Wisconsin school districts are confronting an unexpected budget gap after the state Department of Public Instruction estimated special education reimbursement at approximately 35% for 2025-26—a full seven percentage points below the 42% rate lawmakers touted when passing the state budget in July. The shortfall affects districts statewide, with River Falls facing an estimated $250,000 gap between expected and actual state support.

When the 2025-27 state budget was passed, policymakers celebrated what they called historic investments in special education. Governor Tony Evers and the Legislature approved funding they estimated would reimburse districts at 42% in the first year and 45% in the second year. The actual first-year rate tells a different story.