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Stoughton schools face cuts in general aid despite rise in special-education reimbursements

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Summary

Board heard a legislative update on the 2025–27 state budget: special-education reimbursement rates rise but general per-pupil aid holds flat, leaving the district facing an estimated drop in state general aid and likely property-tax increases to make up the difference.

The Stoughton Area School District Board of Education heard a legislative update Tuesday about the 2025–27 Wisconsin state budget and its implications for local schools, including a substantial increase in special-education reimbursement rates alongside a likely reduction in district general-aid funding that could be covered by higher property tax levies.

District staff member Lisa Pugh said Gov. Tony Evers signed the 2025–27 biennial budget on July 3 and that the budget raises special-education reimbursement to an estimated 45% by the second year, up from the district’s current reimbursement of about 30.6%. Pugh said the budget language uses a funding approach that ties reimbursements to how much special-education spending is billed to the state, rather than a guaranteed sufficiency formula. “I don’t have a lot of great news, but the budget passed,” Pugh said.

That…

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