2013 - 2014 LEGISLATURE
March 11, 2014 - Offered by Representative Steineke.
AB662-ASA1,1,4 1An Act to amend 120.13 (19), 120.14 (1) and 121.07 (6) (a) (intro.); and to create
2121.91 (4) (r) of the statutes; relating to: school district expenditures for
3community programs and services and requiring the exercise of rule-making
Analysis by the Legislative Reference Bureau
Under current law, a school district may establish community education,
training, recreational, cultural, or athletic programs and services. The school board
may collect fees to cover all or part of the costs of such community programs and
services. Current law excludes such costs from the school district's shared cost and
increases the school district's revenue limit by the amount of property taxes levied
for community programs and services. The Department of Public Instruction (DPI)
publishes guidelines regarding community service activities; see
This substitute amendment directs DPI to promulgate rules defining ineligible
costs for community programs and services and provides that only those
expenditures that are ineligible costs under the rules are excluded from a school
district's shared cost. The substitute amendment also requires the annual school
district audit to include information on expenditures for community programs and
services. Finally, the substitute amendment decreases a school district's revenue

limit by the amount of its ineligible expenditures for community programs and
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB662-ASA1,1 1Section 1. 120.13 (19) of the statutes is amended to read:
AB662-ASA1,2,92 120.13 (19) Community programs and services. Establish and maintain
3community education, training, recreational, cultural or athletic programs and
4services, outside the regular curricular and extracurricular programs for pupils,
5under such terms and conditions as the school board prescribes. The school board
6may establish and collect fees to cover all or part of the costs of such programs and
7services. Costs Ineligible costs associated with such programs and services shall not
8be included in the school district's shared cost under s. 121.07 (6). The department
9shall promulgate rules defining "ineligible costs" for the purposes of this subsection.
AB662-ASA1,2 10Section 2. 120.14 (1) of the statutes is amended to read:
AB662-ASA1,2,2011 120.14 (1) At the close of each fiscal year, the school board of each school district
12shall employ a licensed accountant to audit the school district accounts and certify
13the audit. The audit shall include information concerning the school district's
14self-insurance plan under s. 120.13 (2) (b), as specified by the commissioner of
15insurance, and information about expenditures for community programs and
16services under s. 120.13 (19)
. If required by the state superintendent under s. 115.28
17(18), the audit shall include an audit of the number of pupils reported for
18membership purposes under s. 121.004 (5). The cost of the audit shall be paid from
19school district funds. Annually by September 15, the school district clerk shall file
20a financial audit statement with the state superintendent.
AB662-ASA1,3 21Section 3. 121.07 (6) (a) (intro.) of the statutes is amended to read:
1121.07 (6) (a) (intro.) "Shared cost" is the sum of the net cost of the general fund
2and, the net cost of the debt service fund, and eligible costs of the community service
except that "shared cost" excludes any costs, including attorney fees, incurred
4by a school district as a result of its participation in a lawsuit commenced against the
5state, beginning with such costs incurred in the fiscal year in which the lawsuit is
6commenced, excludes any expenditures from a capital improvement fund created
7under s. 120.135 and excludes the costs of transporting those transfer pupils for
8whom the school district operating under ch. 119 does not receive intradistrict
9transfer aid under s. 121.85 (6) as a result of s. 121.85 (6) (am). In this paragraph,
10"net cost of the debt service fund" includes all of the following amounts:
AB662-ASA1,4 11Section 4. 121.91 (4) (r) of the statutes is created to read:
AB662-ASA1,3,1712 121.91 (4) (r) The limit otherwise applicable to a school district under sub. (2m)
13in any school year is decreased by an amount equal to the sum of the school district's
14ineligible expenditures for community programs and services in the previous school
15year. The amount of the decrease under this paragraph shall not be deducted from
16the base for determining the school district's limit under sub. (2m) for the following
17school year.
AB662-ASA1,5 18Section 5. Initial applicability.
AB662-ASA1,3,2019 (1) This act first applies to state aid distributed in, and the calculation of a
20school district's revenue limit for, the 2015-16 school year.