Federal Funds Released After Unusual Withholding Disrupts Wisconsin School Budget Planning

August 01, 2025 | Milwaukee School District, School Districts, Wisconsin


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Federal Funds Released After Unusual Withholding Disrupts Wisconsin School Budget Planning
Milwaukee School District officials reported a significant development regarding federal funding during the Regular Monthly Board Meeting held on August 1, 2025. After a month of uncertainty, the Office of Management and Budget has decided to release previously withheld Title funding, which is crucial for various educational programs, including after-school services and teacher professional development. This decision comes after extensive advocacy efforts from local leaders, including Congresswoman Moore's office, which played a vital role in ensuring that these funds would support students and families in the community.

The meeting also highlighted the challenges posed by the recently passed state budget. Board members expressed concern over the lack of state aid for schools, marking a historic low in funding support. With a reported $4 billion state surplus, the absence of state aid has raised alarms about the sustainability of educational funding in Wisconsin. The district's reliance on local property taxes and nonrecurring referendum funds has increased, with many districts now depending on temporary funding sources to maintain operations.

The board emphasized that the current budget situation is detrimental to the education system, as it fails to meet the state's two-thirds funding responsibility. A recent analysis from the Wisconsin Policy Forum revealed that Wisconsin's per-pupil funding has dropped significantly, now ranking 26th in the nation, down from 11th in 2003. This decline is exacerbated by the fact that local efforts are propping up funding levels, with 122 districts relying on nonrecurring funds for a substantial portion of their budgets.

Despite these challenges, there was a slight increase in special education reimbursement rates, moving from approximately 30% to a projected 42% in the first year. However, this remains below the reimbursement rates for private schools, highlighting ongoing disparities in funding for students with disabilities.

As the board prepares for the upcoming fiscal year, they remain committed to advocating for better funding solutions to ensure that all students in Milwaukee have access to quality education. The discussions from this meeting underscore the urgent need for a reevaluation of state funding policies to support the educational needs of Wisconsin's students effectively.

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