A coalition of Wisconsin school districts, teachers' unions, and advocacy groups filed a lawsuit against the GOP-led Legislature Tuesday, alleging inadequate funding for public schools. The lawsuit, filed in Eau Claire County Circuit Court, argues that high-needs students face the greatest risk and seeks a new finance system unless lawmakers act first.

This marks a dramatic shift in Wisconsin's school funding battles, moving from the Statehouse to the courthouse. The lawsuit comes as Democratic Gov. Tony Evers and Republicans negotiate using the state's $2.5 billion surplus for tax cuts and potential school funding increases. The case will likely reach the liberal-controlled Wisconsin Supreme Court, which previously upheld the funding formula in 2000.

Since 2003, the state's share of education costs has dropped from two-thirds to about half, forcing districts to raise property taxes or seek voter-approved referendums. In 2024, a record 241 referendums were put before voters, with 169 approved. The lawsuit also cites declining test scores over two decades and Wisconsin's persistent achievement gap between white and non-white students as evidence of the funding crisis.