LRB-1385/1
MJL:kmg:km
1997 - 1998 LEGISLATURE
January 15, 1997 - Introduced by Senators Plache, Clausing, Moen, Wineke,
Chvala
and Jauch, cosponsored by Representatives Krug, Turner, Black,
Kreuser, Plale, R. Young, Notestein, Riley, Hasenohrl, Musser, Springer

and Meyer. Referred to Committee on Education.
SB6,1,6 1An Act to repeal 121.07 (6) (am), 121.07 (6) (dg), 121.07 (6) (dr), 121.07 (7) (bm)
2and 121.07 (10) (d); to amend 121.07 (6) (e), 121.07 (7) (c), 121.07 (7) (d), 121.07
3(7) (e), 121.07 (8), 121.07 (10) (a), 121.08 (2) and 121.23 (2) (intro.); and to
4repeal and recreate
73.03 (46), 121.07 (6) (b), 121.07 (6) (d), 121.07 (7) (a),
5121.07 (7) (b) and 121.08 (1) of the statutes; relating to: calculation of school
6aid under the state school aid formula.
Analysis by the Legislative Reference Bureau
Under the current state school aid formula, the guaranteed valuation is the
amount of property tax base support that the state guarantees to each pupil. The
formula establishes 3 guaranteed tax bases that apply to 3 different levels of
expenditure. The primary guaranteed valuation applies to those costs that do not
exceed the primary ceiling cost per pupil of $1,000. The secondary guaranteed
valuation applies to per pupil costs that exceed the primary ceiling. The tertiary
guaranteed valuation applies to per pupil costs that exceed the secondary ceiling,
which, in the 1997-98 school year and in each subsequent school year, is equal to the
secondary ceiling cost per pupil in the previous school year increased by the
percentage change in the consumer price index.
This bill eliminates the tertiary level of state support, resulting in a 2-level
school aid formula. In addition, the bill provides that the primary ceiling is equal to
the primary ceiling in the previous school year increased by the percentage change
in the consumer price index.

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:
SB6, s. 1 1Section 1. 73.03 (46) of the statutes is repealed and recreated to read:
SB6,2,62 73.03 (46) In each school year, to determine the rate for determining the
3primary ceiling cost per member under s. 121.07 (6) (b). The rate for any school year
4is the average percentage change in the consumer price index for all urban
5consumers, U.S. city average, for the calendar year ending on the 2nd preceding
6December 31, as computed by the federal department of labor.
SB6, s. 2 7Section 2. 121.07 (6) (am) of the statutes is repealed.
SB6, s. 3 8Section 3. 121.07 (6) (b) of the statutes is repealed and recreated to read:
SB6,2,129 121.07 (6) (b) The "primary ceiling cost per member" shall be the amount
10determined by multiplying the primary ceiling cost per member in the previous
11school year by the rate determined under s. 73.03 (46) and adding the result to the
12primary ceiling cost per member in the previous school year.
SB6, s. 4 13Section 4. 121.07 (6) (d) of the statutes is repealed and recreated to read:
SB6,2,1514 121.07 (6) (d) The "secondary shared cost" is that portion of a district's shared
15cost which is not included in the primary shared cost.
SB6, s. 5 16Section 5. 121.07 (6) (dg) of the statutes is repealed.
SB6, s. 6 17Section 6. 121.07 (6) (dr) of the statutes is repealed.
SB6, s. 7 18Section 7. 121.07 (6) (e) of the statutes is amended to read:
SB6,3,219 121.07 (6) (e) For a school district created by a consolidation under s. 117.08
20or 117.09, in the school year in which the consolidation takes effect and in each of the

1subsequent 4 school years, the amounts amount under pars. par. (b) and (d) shall be
2multiplied by 1.1 and rounded to the next lowest lower dollar.
SB6, s. 8 3Section 8. 121.07 (7) (a) of the statutes is repealed and recreated to read:
SB6,3,84 121.07 (7) (a) The "primary guaranteed valuation per member" is an amount,
5rounded to the next lower dollar, that, after subtraction of payments under ss.
6121.09, 121.105, 121.85 (6) (b) 2. and 3. and (c) and 121.86, fully distributes the sum
7of the amount remaining in the appropriation under s. 20.255 (2) (ac) for payments
8under ss. 121.08 and 121.85 (6) (a) and (g).
SB6, s. 9 9Section 9. 121.07 (7) (b) of the statutes is repealed and recreated to read:
SB6,3,1310 121.07 (7) (b) The "secondary guaranteed valuation per member" shall be an
11amount rounded to the next lower dollar determined by multiplying the equalized
12valuation of the state by 1.06 and dividing the result obtained by the state total
13membership.
SB6, s. 10 14Section 10. 121.07 (7) (bm) of the statutes is repealed.
SB6, s. 11 15Section 11. 121.07 (7) (c) of the statutes is amended to read:
SB6,3,1716 121.07 (7) (c) For districts operating only high school grades, the amounts in
17pars. (a) to (bm) and (b) shall be multiplied by 3 and rounded to the next lower dollar.
SB6, s. 12 18Section 12. 121.07 (7) (d) of the statutes is amended to read:
SB6,3,2119 121.07 (7) (d) For districts operating only elementary grades, the amounts in
20pars. (a) to (bm) and (b) shall be multiplied by 1.5 and rounded to the next lower
21dollar.
SB6, s. 13 22Section 13. 121.07 (7) (e) of the statutes is amended to read:
SB6,4,223 121.07 (7) (e) For a school district created by a consolidation under s. 117.08
24or 117.09, in the school year in which the consolidation takes effect and in each of the

1subsequent 4 school years, the amounts under pars. (a) to (bm) and (b) shall be
2multiplied by 1.1 and rounded to the next lower dollar.
SB6, s. 14 3Section 14. 121.07 (8) of the statutes is amended to read:
SB6,4,64 121.07 (8) Guaranteed valuation. A school district's primary, and secondary
5and tertiary guaranteed valuations are determined by multiplying the amounts in
6sub. (7) by the district's membership.
SB6, s. 15 7Section 15. 121.07 (10) (a) of the statutes is amended to read:
SB6,4,98 121.07 (10) (a) The "required levy rate" is the sum of the rates derived in pars.
9(b) to (d) and (c).
SB6, s. 16 10Section 16. 121.07 (10) (d) of the statutes is repealed.
SB6, s. 17 11Section 17. 121.08 (1) of the statutes is repealed and recreated to read:
SB6,4,1612 121.08 (1) The state shall pay to the school district a sum equal to the amount
13by which the primary guaranteed valuation exceeds the school district equalized
14valuation, multiplied by the primary required levy rate, and a sum equal to the
15amount by which the secondary guaranteed valuation exceeds the school district
16equalized valuation, multiplied by the secondary required levy rate.
SB6, s. 18 17Section 18. 121.08 (2) of the statutes is amended to read:
SB6,4,2318 121.08 (2) The aid computed under sub. (1) shall be reduced by the sum of the
19amount by which the school district equalized valuation exceeds the secondary
20guaranteed valuation, multiplied by the secondary required levy rate , and the
21amount by which the school district equalized valuation exceeds the tertiary
22guaranteed valuation, multiplied by the tertiary required levy rate
. In no case may
23the aid under this section be less than the amount under sub. (1) (a) zero.
SB6, s. 19 24Section 19. 121.23 (2) (intro.) of the statutes is amended to read:
SB6,5,5
1121.23 (2) (intro.) If a school district holds less than 180 days of school as the
2result of a strike by school district employes, for the purposes of computing general
3aid, the department shall compute the school district's primary and secondary ceiling
4costs cost per member in accordance with the procedure specified in pars. (a) to (e).
5In making the calculation, the department shall:
SB6, s. 20 6Section 20. Initial applicability.
SB6,5,87 (1) This act first applies to the payment of state school aid in the 1997-98 school
8year.
SB6,5,99 (End)
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