Legislature Passes, Governor Signs Budget Diverting $2 Million Per Year From the Common School Fund

Aplogies for the delay on this post; we had some recent personnel changes and out of office vacations that impacted our ability to post this information. 

The Legislature has officially sent the 2025-27 state budget to the Governor’s desk, and Governor Evers signed the bill into law shortly before 2 a.m. on July 3rd. He made minimal partial vetoes. The State Senate adopted a largely technical amendment (though there were some substantive changes) to the version of the bill passed by the Joint Finance Committee. 

The Senate passed the budget as amended on a bipartisan 19-14 vote. Democratic Senators Dianne Hesselbein (D-Middleton), Brad Pfaff (D-Onalaska), Jeff Smith (D-Brunswick), Jamie Wall (D-Green Bay) and Kristin Dassler-Alfheim (D-Appleton) joined 14 Republican lawmakers in voting for the budget. The following Republican lawmakers joined the remaining Democrats in voting “no” on the budget: Senate President Mary Felzkowski (R-Tomahawk), Rob Hutton (R-Brookfield), Chris Kapenga (R-Delafield), and Steve Nass (R-Whitewater). 

The Assembly passed the budget as amended on a bipartisan vote of 59-39. Democratic Representatives Jill Billings (D-La Crosse), Steve Doyle (D-Onalaska), Jodi Emerson (D-Eau Claire), Tara Johnson (D-Town of Shelby), Maureen McCarville (D-De Forest), Sylvia Ortiz-Velez (D-Milwaukee) and Lori Palmeri (D-Oshkosh) joined 52 Republicans in voting for the budget. Republican Representative Scott Allen (R-Waukesha) joined the remaining Democrats in voting “no.” 

High-level highlights of interest in the state budget as passed by the Legislature include:

BCPL

Financial Asset Management: The Governor vetoed a $100,000 per year increase for financial asset management approved by the Legislature. He said he vetoed the increase “because I object to including funding that does not sufficiently cover the cost of a new portfolio management system, and I object to sourcing the financial management costs from funds attributable to forestry activities.” 

Delete Deputy Position: The Governor vetoed a provision in the budget that would have deleted the Deputy Commissioner of Public Lands position. As a result of this veto, the board retains the position authority for this 1.0 FTE GPR position for appointment as a deputy director.

Traffic Law Fine and Forfeiture Revenues in Milwaukee County (divert from CSF): Allows Milwaukee County to retain 100% of fine and forfeiture revenues from violations of state traffic laws and require the funds to be used for the district attorney’s office. Currently, 50% of these funds are deposited into the Common School Fund. It is estimated that this provision will decrease revenues to the Common School fund by -$2.2 million per year.

DPI 

Literacy Grants: Provides $37.1 million GPR in 2025-26 in the biennial appropriation for early literacy initiatives for grants to reimburse school districts, independent charter schools, and private choice schools that adopt a literacy curriculum from the recommendations made by the Early Literacy Curriculum Council, and to reimburse school boards and independent charter schools for the cost of professional development training in literacy. 

Public Library System Aid: Increases funding by $1 million in 2025-26 and by $2 million in 2026-27.

Library Service Contracts: Increases funding by $619,200 SEG in 2025-26 and by $666,600 SEG in 2025-27 to fully fund the estimated costs of the library service contracts maintained by the department. DPI contracts with five service providers: the Milwaukee Public Library, the University of Wisconsin-Madison, the Wisconsin Talking Book and Braille Library, the Cooperative Children’sBook Center, and AutoGraphics. 

BadgerLink and Newsline for the Blind: Increases funding by $96,600 SEG in 2026-27 to maintain BadgerLink and Newsline for the Blind levels of service.

Senate Committee to Vote on Deleting State Treasurer

The Senate Committee on Government Operations, Public Works and Telecommunications will vote on AJR 48 on Wednesday, March 5. If the Committee passes AJR 48 on Wednesday, it could be scheduled for a floor vote as early as March 11—the next time the Senate is in session.

It is important to make contact with the Senators on this Committee and tell them why AJR 48 is a threat to the Board of Commissioners of Public Lands and the Common School Fund.  If you are a constituent please consider contacting them. 

Replacing the State Treasurer with the Lieutenant Governor on the Board of Commissioners of Public Lands could jeopardize our founding fathers’ commitment to maintaining a constitutionally protected form of school library funding. The current BCPL Commissioners do not play a leading role in K-12 school funding or the state budget process—this makes them ideal custodians of the Common School Fund and helps protect the integrity of the fund.

The following Senators are members of the Senate Committee on Government Operations, Public Works and Telecommunications:

Senator Paul Farrow (R-Pewaukee), Chair

(608) 266-9174

Sen.Farrow@legis.wisconsin.gov

Senator Rick Gudex (R-Fond du Lac), Vice Chair

(608) 266-5300

Sen.Gudex@legis.wisconsin.gov

Senator Frank Lasee (R-De Pere)

(608) 266-3512

Sen.Lasee@legis.wisconsin.gov

Senator Neal Kedzie (R-Elkhorn)

(608) 266-2635

Sen.Kedzie@legis.wisconsin.gov

Senator Bob Wirch (D-Pleasant Prairie)

(608) 267-8979

Sen.Wirch@legis.wisconsin.gov

Senator Nikiya Harris (D-Milwaukee)

(608) 266-2500

Sen.Harris@legis.wisconsin.gov

Senator Jennifer Shilling (D-La Crosse)

(608) 266-5490

Sen.Shilling@legis.wisconsin.gov

Rural Schools Taskforce Hears School Technology Concerns

The Speaker’s Taskforce on Rural Schools held a public hearing in Madison on Tuesday to hear from several educational organizations, including WEMTA.

WEMTA Past President Sandra Heiden testified along with Kristy Bovre, Kris McCoy and  Michelle Byholm about the challenges facing library media specialists in rural communities. The group addressed concerns about limited resources, the “extinction” or scaling back of the position, inadequate access to broadband, and challenges with the certification process.  Michelle Byholm highlighted the fact that in rural communities there is often no public library, so the school library is the only library that rural students have access to,  making the Common School Fund incredibly important in these districts.

In response to the concerns raised about the certification process, Representative Steve Nass (R-Whitewater) asked how the process could be streamlined and argued that school librarians do not need to be licensed as teachers. He and Representative Ed Brooks (R-Reedsburg) said they would like the Taskforce to look at streamlining the certification process and reducing some of the credit requirements in order to get more specialists in the field.

Jerry Fiene of the Rural Schools Alliance recommended the creation of a new Technology for Educational Achievement program (TEACH 2) with some components directed to rural school districts. Fiene argued that TEACH 2 should be based on four pillars: statewide broadband access, block grants for rural schools to support technology, a state-led digital learning effort that receives state funding, and statewide professional development to all districts in the state.

John Forester of the School Administrators Alliance agreed with Fiene that Wisconsin should create a TEACH 2 program, saying that Wisconsin has fallen behind other states in terms of school technology since the original TEACH program went away. He also called on the state to show leadership on the issue of statewide broadband access.

State Superintendent Tony Evers told the Taskforce that rural schools are unable to take advantage of technology in the same way that urban and suburban school districts do because of a lack of affordable, high speed internet. Evers told the Taskforce that rural schools need affordable and adequate bandwidth to ensure that digital learning is happening.

WEMTA at the State Capitol 

Betsy Kippers and Ron Martin of the Wisconsin Education Association Council (WEAC) also addressed the challenges facing rural schools in the area of technology. Kippers said that scores of schools are going without specialists and there is not enough time or training to implement new technologies in rural schools. She advocated for better integrated technology in rural schools and described library media specialists as the “backbone of connecting students, teachers and the community.”

Other challenges facing rural schools that were addressed include: teacher retention and recruitment, transportation costs, challenges with the funding formula and referenda.

Representative Rob Swearingen (R-Rhinelander), the Taskforce’s chair, said he plans to hold three more hearings throughout the state. Swearingen hopes to release a final report by February and he said that recommendations for improving broadband access will likely be included in the report. 

Concerns Raised about BCPL at AJR-48 Hearing

The Assembly Committee on State Affairs held a public hearing last Thursday morning on Assembly Joint Resolution 48, which would eliminate the positions of Secretary of State and State Treasurer. AJR 48 would amend the state’s constitution to delete the two positions and replace them on the Board of Commissioners of Public Lands, which administers the Common School Fund, with the Superintendent of Public Instruction and the Lieutenant Governor.

Kathy Sanders of WEMTA and Paul Nelson of WLA both testified against the proposal due to its possible impact on the Common School Fund.

Representative Michael Schraa (R-Oshkosh) and Senator Rick Gudex (R-Fond du Lac), the resolution’s authors, testified that AJR-48 would save taxpayers money by eliminating positions that have very little to do. They said their goal in introducing the legislation is to streamline and modernize state government.  

Representatives Penny Bernard Schaber (D-Appleton), Katrina Shankland (D-Stevens Point) and Rob Swearingen (R-Rhinelander) raised concerns about the Resolution’s effect on the Common School Fund and Board of Commissioners of Public Lands (BCPL).

Swearingen said that if the Resolution damages the BCPL in any way, he cannot support the bill until those issues are fixed. Bernard Schaber raised concerns that the State Superintendent of Public Instruction would have a conflict of interest in serving on the Board due to his role in school funding.

Schraa argued that the Board is not being threatened by the Resolution since all it does is change its membership. He also asserted that the State Superintendent would be a good addition to the Board because the position would have the best knowledge of education funding.

Current State Treasurer Kurt Schuller and Secretary of State Doug La Follette were not in attendance, but did provide written statements to the Committee. You can view their remarks here and here. 

Schuller, who previously advocated for the deletion of the two offices, has not taken a formal position on AJR-48. However, Deputy State Treasurer Scott Feldt published an op-ed in Municipal Finance Today advocating for the retention of the State Treasurer position.

"I make no apologies for what I attempted however, I see now it was an effort fated to fail," wrote Schuller of his efforts to delete his position in his statement to the Committee. "I do believe this office can continue to play an important financial role in Wisconsin’s government with the support of the Governor, legislature and voting public."

Mark Hazelbaker, formerly of the Wisconsin Counties Association, testified in favor of the proposal but cautioned that the roles on the BCPL should not be transferred lightly since management of the Common School Fund is very important. He proposed creating one commissioner to administer BCPL trust funds and limiting the term to 10 years.

Also Testifying against: Roger Luce of the Oneida County Economic Development Corporation. Jaime Aulik of the Wisconsin County Clerk Association. Jack Voight, former state treasurer. 

Testifying in Favor: Ron Bishop, current candidate for Secretary of State. Jay Schroeder, private citizen. 

RELATED NEWS: Attorney General J.B. Van Hollen, who also sits on the BCPL, announced today that he will not seek re-election.