Assembly Bill 1 aims to enhance funding for education and provide tax relief to Wisconsin residents. The bill proposes an additional $85 million for special education and school age parents programs in fiscal year 2025-26 and $230 million in fiscal year 2026-27, which is expected to increase the proration rate for aid to eligible costs. It also introduces a new per pupil state aid, which will be calculated based on a three-year average of statewide enrollment and will include independent charter school pupils. The bill allocates $302.5 million for this aid in the 2026-27 school year and mandates a payment schedule similar to that of equalization aids. Furthermore, it increases state funding for technical colleges by $50 million while reducing their property tax revenue limit.

In addition to education funding, the bill creates income tax subtractions for qualified tips and overtime compensation, allowing taxpayers to deduct these amounts on their federal income tax returns without a sunset provision. It also includes surplus refund payments for taxpayers who filed a Wisconsin individual income tax return for 2024, with amounts set at $600 for married couples and $300 for individuals, contingent on their tax liability. The Department of Revenue will identify eligible taxpayers and issue payments by September 15, 2026. The bill amends various sections of the statutes to incorporate these changes, including adjustments to definitions and calculations related to state aid and pupil enrollment.

Statutes affected:
Bill Text: 71.52(6), 71.52, 115.437(1), 115.437, 121.07(7)(b), 121.07, 121.105(title), 121.105, 121.105(1)