Special Education in Wisconsin: How Does Funding Work?

Special education services are essential for supporting students with disabilities.Wisconsin is one of the few states that uses categorical aid to reimburse school districts for certain costs related to special education (EdBuild). This aid covers expenses like teacher and staff salaries, specialized transportation, and the cost of adaptive equipment or technology. However, the reimbursement rate covers only a small portion of eligible expenses, with recent rates ranging from 25% to 30%. This means districts must allocate additional resources to cover the remaining costs.

In addition to state aid, federal funding is available under the Individuals with Disabilities Education Act (IDEA). These funds are allocated to districts based on a formula considering student enrollment and poverty levels. However, federal funding typically covers only a fraction of special education costs, leaving districts mainly reliant on state aid and local funding.

In recent years, Wisconsin lawmakers have discussed increasing the reimbursement rate to ease the financial strain on districts. School board organizations, like WASB and SAA, argue that higher reimbursement rates would ensure equitable access to services, particularly for smaller or underfunded districts. DPI also has made budgetary projections to support higher reimbursement rates.   

Wisconsin’s State Superintendent has requested a 90% reimbursement rate. People across Wisconsin are asking Governor Evers to include a higher reimbursement rate in the upcoming state budget proposal to better serve special education students, as this WTMJ story reports. 

If you’d like to submit your thoughts to the Governor Evers about changing the special education reimbursement rate, voice your opinion at: https://evers.wi.gov/Pages/Connect.aspx.