State surplus negotiations heat up

By SAA Executive Director Dee Pettack • February 11, 2026

As the Wisconsin State Assembly returned to the floor this week, debate intensified over how to allocate the newly projected state surplus. Governor Tony Evers’ “400-year veto” remains central to that discussion. However, legislative leaders do not appear prepared to provide the Governor what he would need to agree to modifying the veto. With only eight days remaining before the Assembly plans to conclude its floor session for the year, the window for action is narrow.

The latest development is Governor Evers’ proposed $1.3 billion package, which includes $450 million in general aid and $200 million in special education aid. In exchange, the Governor would agree to the Legislature’s stated priority of property tax relief by adding $550 million to the school levy tax credit and approximately $93 million to offset reduced tax collections resulting from the “no tax on cash tips” policy. Senate Majority Leader LeMahieu has stated publicly that eliminating the 400-year veto must be part of any agreement. Meanwhile, Assembly Speaker Vos has struck a more conciliatory tone, suggesting a deal may be forthcoming and emphasizing property tax relief as a top priority. For school leaders, the immediate priority remains clear: the Legislature should first fulfill its commitment from the last budget by addressing the shortfall in Special Education Categorical Aid. Doing so would require only a small fraction of the surplus, estimated at roughly $200 million. Future shortfalls in the promised 42% reimbursement rate (and 45% in the second year) could be avoided by moving to a sum-sufficient funding model that provides stability and predictability for districts.

Where negotiations ultimately land remains uncertain. The Senate has so far taken a quieter role, and votes from Senate Democrats would likely be necessary to pass any final agreement. It is critically important to contact your legislators, regardless of chamber or party. With so little time left in the session, now is the time to lend your voice. Share what 42% and 45% mean for your district’s budget and for your students. There is still time to act and close the gap on the commitment made by policymakers.

The situation remains fluid, and it is crucial you reach out to your legislators and encourage them to fulfill their promise by providing additional revenue to cover the special education shortfall. If you need sample messaging, please reach out. You can find your legislator and contact information here.