MMSD Statement on State Budget Agreement

MADISON, Wis. (July 1, 2025)—The bipartisan state budget agreement, described as “pro-kid,” shows a strong commitment to Wisconsin’s early childhood learners, K-12 students and college scholars in public schools and institutions of higher education. The district anticipates an increase of approximately $12 million. The proposed budget establishes the highest reimbursement rate in 30 years and a larger increase for special education than the combined increases in the last three state budgets.

“We’re grateful to the legislators and advocates who supported this historic increase in reimbursement for special education funding,” said Dr. Joe Gothard, Superintendent. 

In addition, approximately $1.4 billion in spendable revenue is slated for K-12 public schools and funding for comprehensive school-based mental health services was doubled to $30 million, building on the “Get Kids Ahead.” However, no increase in general aid is expected. Madison is estimated to see a decrease in general aid of nearly $12 million as compared to last year, which will result in a $12 million increase in property taxes.

“We also want to thank our community for voting yes to the November referenda,” Gothard said. “Without the support of the referenda, MMSD’s budget would need to be significantly reduced, even with the state aid increase.”

The additional funding made possible through increased special education reimbursement enables MMSD to plan strategically to help close the gaps for all students. Additionally,  MMSD can maximize resources to ensure it can sustain programs, practices, and staffing for lasting, positive impacts. Furthermore, MMSD will not need to rely on one-time funds to balance its 2025-2026 budget. 

Although the increase in special education reimbursement represents a positive step forward, considerable work is required to ensure adequate funding for public schools. For example, public school districts statewide had originally advocated for a 90% special education reimbursement rate. Even with this increase, MMSD faces a $64 million shortfall for the upcoming school year. 

“Stable, ongoing funding is critical not only for our students, but students across the state,” Gothard said. “It’s an investment in the long-term sustainability of public education in Wisconsin.” 

Gothard added, “As always we center our work on our students. MMSD remains committed to investing in early learning, literacy, multilingual education, mental health supports and the well-rounded opportunities every child deserves.”

MMSD, along with districts throughout the state, has long been facing significant funding gaps in special education reimbursement. Last year, the gap was $64.8 million, and it was most recently expected to be $76 million. 

###

About the Madison Metropolitan School District: The Madison Metropolitan School District (MMSD) is the second-largest school district in Wisconsin, serving more than 25,000 students across 52 schools. The District’s vision is that every school will be a thriving school that prepares every student to graduate ready for college, career and community. With more than 4,500 teachers and staff, MMSD is committed to ensuring the District’s goals and core values are held at the center of its efforts, so students can learn, belong and thrive. For more information, visit mmsd.org.