Lost federal aid for Wisconsin schools under GOP budget action now pegged at $2.3 billion

Molly Beck
Milwaukee Journal Sentinel

MADISON - Wisconsin schools could lose $2.3 billion in federal funding under budget action by the Legislature's Republican-controlled finance committee — nearly $1 billion more that could be lost in pandemic relief aid than previously believed. 

Republican lawmakers writing the state's next two-year state spending plan last month allocated an additional $128 million for K-12 schools, far below a state spending threshold required under federal relief laws that provide schools with funding to recover from the effects of the coronavirus pandemic. 

Until Wednesday, lawmakers were under the impression $1.5 billion was at risk but a new memo shows the money in jeopardy surpasses $2 billion. The news comes at a time when state officials have learned the state has an additional $4.4 billion in revenue to use in spending decisions.

Rep. Mark Born and Sen. Howard Marklein, co-chairmen of the finance committee, have said the ultimate state budget plan they intend to send Gov. Tony Evers will address the issue and preserve the funding but have not yet said how they plan to tackle it.

"We will continue to consider the potential impact of the MOE for the future, but we will not paralyze our state budget process," Marklein said in a statement last week, referring to the federally required maintenance of effort. "We made strategic investments in K-12 and higher education yesterday that will move Wisconsin forward and we will continue to do what is right for the taxpayers of our state.”

The federal American Rescue Plan Act and other federal measures require state officials to spend $387 million more over two years on schools to qualify for the $2.3 billion in federal aid, according to a memo released Wednesday by Democratic Sen. Jon Erpenbach of West Point. 

Aides to Born and Marklein did not immediately have a reaction to the new memo. 

"Unless Republicans properly fund our schools, all 421 school districts in Wisconsin will lose out on a combined $2.3 billion. No more excuses, no more games … it’s time for Republicans to do the right thing because the budget clock is ticking," Erpenbach said in a statement. 

Under their action on schools, the finance committee set aside $350 million that is not allocated but leaders said they intend to use it for schools in future budgets. The funding could be used during this cycle to meet the federal requirements to keep the aid. 

Assembly Speaker Robin Vos of Rochester last week downplayed the possibility the federal government would take back the money from Wisconsin schools. 

“I have absolute faith that President Biden and Gov. Evers are not going to let $1.5 billion go away from the schools that deserve it simply because they want to argue over some rulings of a bureaucrat in the agency as opposed to what the reality is, that schools need the money,” he said.

Groups representing schools have urged lawmakers on the committee to revisit school funding in light of the potential losses in federal aid. 

"What many of the members of the JFC continue to fail to acknowledge, even after being told by numerous sources, is that these dollars are specifically targeted for COVID-19 mitigation measures and cannot be used indiscriminately for other budget items," the Wisconsin Rural Schools Alliance, which represents 167 rural districts, said in an unsigned a press release.

In a letter to GOP legislative leaders sent Wednesday, Democratic U.S. House members said "ultimately, it will be our schoolchildren, teachers, principals, and parents who will lose after having worked so hard this past year despite the difficulties they faced."

Patrick Marley of the Milwaukee Journal Sentinel contributed to this report.

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Contact Molly Beck at molly.beck@jrn.com. Follow her on Twitter at @MollyBeck.