LRB-2124/1
MJL:lmk&jld:rs
2005 - 2006 LEGISLATURE
February 22, 2005 - Introduced by Representatives Towns, Davis, Ainsworth,
Wood, Nischke, Kerkman, Gielow, LeMahieu, Musser, Hines, Bies, Hahn,
Petrowski, Van Roy, Jeskewitz, Underheim, Albers, Pridemore, Vukmir,
Kestell, Gunderson, Hundertmark
and Ott, cosponsored by Senators Olsen,
Kapanke, Darling
and Kanavas. Referred to Committee on Education.
AB123,1,5 1An Act to amend 115.88 (1m) (a) and (am), 115.88 (2), (2m), (3), (4) and (6),
2115.88 (8), 115.882, 118.255 (4), 118.43 (3) (intro.) and 118.43 (6) (b) (intro.); and
3to create 20.255 (2) (bb), 118.43 (4m) and 118.43 (6) (b) 9. of the statutes;
4relating to: supplementing special education funding with lapsed student
5achievement guarantee contract moneys and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a school district may enter into a five-year, renewable
student achievement guarantee (SAGE) contract with the Department of Public
Instruction to reduce class size to 15 pupils in grades kindergarten to three in
exchange for receiving state aid equal to $2,000 for each low-income pupil enrolled
in grades eligible for SAGE funding.
This bill allows a school district to choose not to comply with the requirement
to reduce class size in grades two or three and to forego the aid that it would have
received. The amount of foregone aid is lapsed to the general fund and appropriated
to supplement the payment of special education aid.
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:
AB123, s. 1
1Section 1. 20.255 (2) (bb) of the statutes is created to read:
AB123,2,52 20.255 (2) (bb) Special education aid; supplement. A sum sufficient equal to
3the amounts lapsed to the general fund in the previous fiscal year from the
4appropriation accounts under pars. (cu) and (cv) for the payment of aids for special
5education and school age parents program under ss. 115.88, 115.93, and 118.255.
AB123, s. 2 6Section 2. 115.88 (1m) (a) and (am) of the statutes are amended to read:
AB123,2,177 115.88 (1m) (a) If, upon receipt of the plan under s. 115.77 (4), the state
8superintendent is satisfied that the special education program has been maintained
9during the preceding school year in accordance with law, the state superintendent
10shall certify to the department of administration in favor of each county, cooperative
11educational service agency and school district maintaining such special education
12program a sum equal to the amount expended by the county, agency and school
13district during the preceding year for salaries of personnel enumerated in sub. (1),
14including the salary portion of any authorized contract for physical or occupational
15therapy services, and other expenses approved by the state superintendent as costs
16eligible for reimbursement from the appropriation appropriations under s. 20.255 (2)
17(b) and (bb).
AB123,3,618 (am) If the operator of a charter school established under s. 118.40 (2r) operates
19a special education program and the state superintendent is satisfied that the
20operator of the charter school is complying with 20 USC 1400 to 1491o, the state
21superintendent shall certify to the department of administration in favor of the
22operator of the charter school a sum equal to the amount that the operator of the
23charter school expended during the previous school year for salaries of full-time or
24part-time licensed teachers, licensed coordinators of special education, licensed
25school social workers, licensed school psychologists, paraprofessionals, licensed

1consulting teachers to work with any teacher of regular education programs who has
2a child with a disability in a class and any other personnel, as determined by the state
3superintendent. Certified costs under this paragraph are eligible for reimbursement
4from the appropriation appropriations under s. 20.255 (2) (b) and (bb). The state
5superintendent may audit costs under this paragraph and adjust reimbursement to
6cover only actual, eligible costs.
AB123, s. 3 7Section 3. 115.88 (2), (2m), (3), (4) and (6) of the statutes are amended to read:
AB123,3,218 115.88 (2) Transportation aid. If upon receipt of the plan under s. 115.77 (4)
9the state superintendent is satisfied that the transportation of children with
10disabilities has been maintained during the preceding year in accordance with the
11law, the state superintendent shall certify to the department of administration in
12favor of each county, cooperative educational service agency, or school district
13transporting such pupils an amount equal to the amount expended for such
14transportation as costs eligible for reimbursement from the appropriation
15appropriations under s. 20.255 (2) (b) and (bb). Pupils for whom aid is paid under
16this subsection shall not be eligible for aid under s. 121.58 (2) or (4). This subsection
17applies to any child with a disability who requires special assistance in
18transportation, including any such child attending regular classes who requires
19special or additional transportation. This subsection does not apply to any child with
20a disability attending regular or special classes who does not require any special or
21additional transportation.
AB123,4,6 22(2m) Other transportation aid. If the operator of a charter school established
23under s. 118.40 (2r) transports children with disabilities and the state
24superintendent is satisfied that the operator of the charter school is complying with
2520 USC 1400 to 1491o, the state superintendent shall certify to the department of

1administration in favor of the operator of the charter school a sum equal to the
2amount that the operator of the charter school expended during the previous school
3year for transportation under this subsection as costs eligible for reimbursement
4from the appropriations under s. 20.255 (2) (b) and (bb). The state superintendent
5may audit costs under this subsection and adjust reimbursement to cover only
6actual, eligible costs.
AB123,4,17 7(3) Board and lodging aid. There shall be paid the amount expended for board
8and lodging and transportation between the boarding home and the special
9education program of nonresident children enrolled under s. 115.82 (1) in the special
10education program. The department shall certify to the department of
11administration in favor of each school district, cooperative educational service
12agency, county children with disabilities education board, state agency of another
13state or private, nonsectarian special education service which operates the special
14education program while providing board, lodging and transportation an amount
15equal to the amount expended for such board and lodging and transportation as costs
16eligible for reimbursement from the appropriation appropriations under s. 20.255 (2)
17(b) and (bb).
AB123,4,25 18(4) Hospitals and convalescent home aid. The full cost of special education for
19children in hospitals and convalescent homes for orthopedically disabled children
20shall be paid from the appropriation appropriations under s. 20.255 (2) (b) and (bb).
21The supervision of such instruction shall be under the department and the school
22board of the school district in which the hospital or convalescent home is located. The
23school board of the district in which the hospital or convalescent home is located shall
24submit to the department an itemized statement of all revenues and expenditures
25for the actual cost of such instruction and any other information it requires.
AB123,5,6
1(6) Aid for instruction outside of district. The department shall certify to
2the department of administration, in favor of each school district, an amount equal
3to the amount expended for salaries and travel expenses, as determined in advance
4by the state superintendent, for providing special education outside the school
5district of employment, as eligible for reimbursement from the appropriation
6appropriations under s. 20.255 (2) (b) and (bb).
AB123, s. 4 7Section 4. 115.88 (8) of the statutes is amended to read:
AB123,5,178 115.88 (8) Enrollment out of state. If a child with a disability is enrolled in
9a public special education program located in another state and the state
10superintendent is satisfied that the program in which the child is enrolled complies
11with this subchapter, the state superintendent shall certify to the department of
12administration in favor of the school district in which the child resides or the school
13district attended by the child under s. 118.51 or 121.84 (1) (a) or (4) a sum equal to
14the amount expended by the school district during the preceding year for the
15additional costs associated with the child's special education program as costs
16eligible for reimbursement from the appropriation appropriations under s. 20.255 (2)
17(b) and (bb).
AB123, s. 5 18Section 5. 115.882 of the statutes is amended to read:
AB123,6,2 19115.882 Payment of state aid. Funds appropriated under s. 20.255 (2) (b)
20and (bb) shall be used first for the purpose of s. 115.88 (4). Costs eligible for
21reimbursement from the appropriation appropriations under s. 20.255 (2) (b) and
22(bb)
under ss. 115.88 (1m) to (3), (6) and (8), 115.93, and 118.255 (4) shall be
23reimbursed at a rate set to distribute the full amount appropriated for
24reimbursement for the costs, less the amount paid by the department of health and

1family services under s. 20.435 (4) (b) and (o) under s. 49.45 (39) (b) 1m., not to exceed
2100%.
AB123, s. 6 3Section 6. 118.255 (4) of the statutes is amended to read:
AB123,6,134 118.255 (4) If the state superintendent is satisfied that the health treatment
5services program has been maintained during the preceding school year in
6accordance with law, the state superintendent shall certify to the department of
7administration in favor of each school board, cooperative educational service agency
8and county children with disabilities education board maintaining such health
9treatment services, an amount equal to the amount expended for items listed in s.
10115.88 (1m) by the school board, cooperative educational service agency and county
11children with disabilities education board during the preceding year for these health
12treatment services as costs eligible for reimbursement from the appropriation
13appropriations under s. 20.255 (2) (b) and (bb).
AB123, s. 7 14Section 7. 118.43 (3) (intro.) of the statutes is amended to read:
AB123,6,1715 118.43 (3) Contract requirements. (intro.) Except as provided in pars. (am)
16and (ar) and sub. (4m), an achievement guarantee contract shall require the school
17board to do all of the following in each participating school:
AB123, s. 8 18Section 8. 118.43 (4m) of the statutes is created to read:
AB123,6,2219 118.43 (4m) Exceptions. A school district participating in the program under
20this section on or after the effective date of this subsection .... [revisor inserts date],
21may choose not to comply with the requirement to reduce class size to 15 in grades
222 or 3, or both, in any school.
AB123, s. 9 23Section 9. 118.43 (6) (b) (intro.) of the statutes is amended to read:
AB123,7,324 118.43 (6) (b) (intro.) From the appropriations under s. 20.255 (2) (cu) and (cv),
25subject to par. (c), the department shall pay to each school district that has entered

1into a contract with the department under this section, except for a school district
2that chooses not to reduce class size under sub. (4m),
an amount determined as
3follows:
AB123, s. 10 4Section 10. 118.43 (6) (b) 9. of the statutes is created to read:
AB123,7,85 118.43 (6) (b) 9. In the 2005-06 and any subsequent school year, $2,000
6multiplied by the number of low-income pupils enrolled in grades eligible for funding
7in each school in the school district covered by renewals of contracts under sub. (2)
8(g).
AB123, s. 11 9Section 11. Effective date.
AB123,7,1110 (1) This act takes effect on July 1, 2005, or the day after publication of the
112005-07 biennial budget act, whichever is later.
AB123,7,1212 (End)
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