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Notable Updates from the 2025–2027 Approved State Budget

Notable Updates from the 2025–2027 Approved State Budget

Notable Updates from the 2025–2027 Approved State Budget

The recently passed and signed Wisconsin state budget includes several items impacting child care, workforce development, and workers compensation.  

Child Care & Early Education 

  • Wisconsin Shares Funding Increased: An additional $21.4M was approved due to rising caseloads, along with $137.2M to raise reimbursement rates to better match market value. 
  • Child Care Counts Program Removed: The Governor’s proposal for permanent funding was denied. Instead, $110M in one-time federal dollars will temporarily support providers through July 2026. 
  • New Access Support: $1M annually starting in 2026-27 will go to Wonder School Inc. for licensing and support services. 
  • Pilot Program on Ratios: A 2-year test will increase worker-to-child ratios and provide higher reimbursements for infants and toddlers. 
  • In-Home Child Care Expansion: A new category for “large family child care centers” allows up to 12 kids per home, easing space regulations to support more providers. 
  • Assistant Teacher Flexibility: Child care centers can now hire trained 16-year-olds, with limited unsupervised time allowed after age 18. 
  • New 4K Option: $66.1M will support a community-based school readiness program offering 4K instruction at child care centers, outside the public school system. 


Workforce Investments 

  • Youth Apprenticeship Grants: Funding increased by $6M. 
  • Early College Credit Program: Receives $581K in additional support. 
  • CDL Training: $500K will extend the commercial driver grant program two more years. 
  • Technical College Enhancements: 
    • $8.3M in general aid. 
    • $2M for AI curriculum and credentials. 
    • $3M for free, open-source textbooks. 


Workers Compensation Fee Schedule 

  • A new hospital-only fee schedule will help lower workers comp medical costs. 
  • Rates will be set by region at the 75th percentile of commercial prices, plus 20%. 
  • This is a first step toward broader reform, focused on cost savings for employers. 


To learn more and see the full state budget, visit:  https://doa.wi.gov/Pages/StateFinances/CurrentBiennialBudget.aspx

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