2001 - 2002 LEGISLATURE
April 18, 2001 - Introduced by Representatives Walker, Starzyk, Berceau, Black,
Gunderson, Hoven, Hubler, Jeskewitz, Loeffelholz, Miller, Musser, Pocan,
Rhoades, Seratti, Staskunas, Stone, Townsend, Vrakas
and Wade,
cosponsored by Senators Rosenzweig, Risser, Darling and M. Meyer.
Referred to Committee on Education.
AB325,1,3 1An Act to amend 121.07 (6) (a) (intro.); and to repeal and recreate 121.07 (6)
2(am) of the statutes; relating to: excluding certain debt service costs from the
3computation of state school aid.
Analysis by the Legislative Reference Bureau
Under current law, a school district's debt service costs are included in its
shared cost for the purpose of determining the amount of state aid that the school
district receives. Under this bill, debt service on debt authorized by a referendum
on or after the bill's effective date is excluded if the exclusion results in an increase
in state aid to the school district.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB325, s. 1 4Section 1. 121.07 (6) (a) (intro.) of the statutes is amended to read:
AB325,2,75 121.07 (6) (a) (intro.) "Shared Subject to par. (am), "shared cost" is the sum of
6the net cost of the general fund and the net cost of the debt service fund, except that
7"shared cost" excludes any costs, including attorney fees, incurred by a school district

1as a result of its participation in a lawsuit commenced against the state, beginning
2with such costs incurred in the fiscal year in which the lawsuit is commenced,
3excludes any expenditures from a capital improvement fund created under s.
4120.135, and excludes the costs of transporting those transfer pupils for whom the
5school district operating under ch. 119 does not receive intradistrict transfer aid
6under s. 121.85 (6) as a result of s. 121.85 (6) (am). In this paragraph, "net cost of
7the debt service fund" includes all of the following amounts:
AB325, s. 2 8Section 2. 121.07 (6) (am) of the statutes is repealed and recreated to read:
AB325,2,129 121.07 (6) (am) In par. (a), "debt service" excludes debt service on debt
10authorized by a referendum on or after the effective date of this subsection .... [revisor
11inserts date], if the result of excluding such debt service is an increase in state aid
12to the school district under s. 121.08.
AB325, s. 3 13Section 3. Initial applicability.
AB325,2,1514 (1) This act first applies to state aid paid to school districts in the 2002-03
15school year.
AB325,2,1616 (End)