2009 Wisconsin Act 28, the 2009-11 biennial budget bill, made several modifications to the Milwaukee parental choice program under s.
119.23, Stats. Several of the modifications require that the department develop rules to implement the statutory provisions. One of those modifications requires the department to develop a rule to establish a nonrefundable fee to cover the cost of employing one full-time DPI auditor for the program. Each private school intending to participate in the program in the 2010-11 school year must pay the fee no later than February 1.
The rules:
•
Require the department to establish the nonrefundable fee by December 1, 2009, for the 2010-11 school year and annually thereafter for subsequent school years.
•
Set the nonrefundable fee by establishing a fee formula.
•
Require that the private schools pay the nonrefundable fee to the department by cashier's check by February 1, 2010 for the 2010-11 school year and annually thereafter for subsequent school years.
•
Allows the state superintendent to bar a private school from participating in the choice program if the private school fails to pay the nonrefundable fee.
Comparison with federal regulations
N/A
Comparison with rules in adjacent states
Illinois, Iowa, Michigan, and Minnesota do not have rules relating to private school voucher programs.
Summary of factual data and analytical methodologies
Because the cost of employing a full-time auditor to evaluate the financial information submitted by the private schools may change from year to year, the rules include a formula whereby a fee will be set annually. The fee should not change significantly from year to year but the formula will allow for flexibility if needed when establishing the fee.
2009 Wisconsin Act 28 requires the private schools to pay the fee by February 1 of the school year previous to the school year in which they plan to participate (see s.
119.23 (2) (a) 3., Stats.).
Analysis and supporting documents used to determine effect on small business
N/A
Anticipated costs incurred by private sector
N/A
Small Business Impact
The proposed rules will have no significant economic impact and are not anticipated to have a fiscal impact on small businesses, as defined in s.
227.114 (1) (a), Stats.
Fiscal Estimate
A nonrefundable fee will be charged to private schools participating in the Milwaukee Parental Choice Program (MPCP) to cover the costs of employing one full-time auditor to evaluate the financial information submitted by the private schools under the program.
The fee charged (due November 1, 2009) to schools participating in the 2009-10 school year will be determined by dividing the cost of the full-time auditor position by the number of schools that submitted information required on September 1, 2009 (rounded to the nearest dollar). Assuming a full-time auditor would be hired by October 1, 2009, the cost of his or her employment for the first year (October 1, 2009 — June 30, 2010) would be approximately $111,400. Assuming 125 schools will be participating in the MPCP, the approximate fee to be charged would be $891 per school ($111,400 ÷ 125 = $891).
The fee charged (due February 1, 2010) to schools indicating an intent to participate in the 2010-11 school year will be determined by dividing the cost of the full-time auditor position by the number of schools that submitted information required on the previous October 1 (rounded to the nearest dollar). The cost of a full-time auditor for one year (July 1, 2010 — June 30, 2011) would be approximately $146,200. Assuming 125 schools will be participating in the MPCP, the approximate fee to be charged would be $1,170 per school ($146,200 ÷ 125 = $1,170).
Based on this amount, it is assumed the rules will have no significant economic impact on small businesses, as defined in s.
227.114 (1) (a), Stats.
These rules have no local fiscal effect.
Agency Contact Person
Robert Soldner, Director
School Management Services
Phone: (608) 266-7475
