LRB-1663/1
MDK:bjk:jf
2009 - 2010 LEGISLATURE
February 11, 2010 - Introduced by Representatives Murtha, LeMahieu, Nerison,
Spanbauer, Lothian, Roth, A. Ott, Vos, Townsend, Suder, Nygren
and
Petrowski, cosponsored by Senator Grothman. Referred to Committee on
Colleges and Universities.
AB738,1,3 1An Act to amend 36.27 (1) (a) and 36.27 (1) (am) (intro.); and to create 36.27
2(1) (ar) of the statutes; relating to: limiting nonallocable segregated fee and
3resident tuition increases at the University of Wisconsin System.
Analysis by the Legislative Reference Bureau
Under current law the Board of Regents (board) of the University of Wisconsin
(UW) System may not increase resident undergraduate tuition beyond an amount
sufficient to fund all of the following: 1) in an odd-numbered year, the highest
amount shown in the appropriation schedule for the tuition appropriation for that
year in the Joint Committee of Finance version of the budget bill, the engrossed
budget bill, or the enrolled budget bill; 2) in an even-numbered year, the amount
shown in the appropriation schedule for the tuition appropriation; 3) the approved
recommendations of the director of the Office of State Employment Relations for
compensation and fringe benefits for staff; 4) projected losses of revenue caused by
enrollment declines; 5) certain state-imposed costs; 6) nontraditional courses; and
7) differential tuition.
In addition to tuition, the board charges students segregated fees. Under board
policies, there are two types of segregated fees: allocable and nonallocable. Allocable
fees support campus student activities, such as student organizations, concerts, and
lectures. Nonallocable fees support fixed obligations and programs that require
stable funding, such as debt service, base operating funds for student unions, and
student health services.
In fiscal years 2009-10, 2010-11, 2011-12, and 2012-13, this bill suspends the
restrictions described above. Instead, the bill limits any increase in resident

undergraduate tuition during those fiscal years to no more than 4 percent above the
tuition in effect in the previous fiscal year. In addition, the bill limits any increase
in total nonallocable segregated fees for resident and nonresident undergraduate
students during those fiscal years to no more than 4 percent above the total
nonallocable segregated fees in effect during the previous fiscal year. However, the
bill provides an exception to the limit on increases for nonallocable segregated fees.
If the undergraduate students enrolled at an institution of the UW System approve
an increase in nonallocable segregated fees for a specified fiscal year that exceeds the
foregoing limit, the board may increase nonallocable segregated fees for
undergraduates at that institution for that fiscal year by the amount approved. For
the exception to apply, more than 10 percent of the undergraduate students enrolled
at an institution must vote to approve the increase. In addition, the ballot used in
the referendum must do the following: 1) identify the amount of the increase and the
fiscal years for which the increase applies; and 2) explain the reasons for the
increase.
For further information see the state 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:
AB738, s. 1 1Section 1. 36.27 (1) (a) of the statutes is amended to read:
AB738,2,82 36.27 (1) (a) Subject to pars. (am), (ar), (b), and (c), the board may establish for
3different classes of students differing tuition and fees incidental to enrollment in
4educational programs or use of facilities in the system. Except as otherwise provided
5in this section, the board may charge any student who is not exempted by this section
6a nonresident tuition. The board may establish special rates of tuition and fees for
7the extension and summer sessions and such other studies or courses of instruction
8as the board deems advisable.
AB738, s. 2 9Section 2. 36.27 (1) (am) (intro.) of the statutes is amended to read:
AB738,2,1210 36.27 (1) (am) (intro.) The Except as provided in par. (ar), the board may not
11increase academic fees for resident undergraduate students beyond an amount
12sufficient to fund all of the following:
AB738, s. 3 13Section 3. 36.27 (1) (ar) of the statutes is created to read:
AB738,3,2
136.27 (1) (ar) 1. In fiscal years 2009-10, 2010-11, 2011-12, and 2012-13, the
2board may not do any of the following:
AB738,3,43 a. Increase academic fees for undergraduate students by more than 4 percent
4above the academic fees in effect for the previous fiscal year.
AB738,3,75 b. Except as provided in subd. 2., increase the total nonallocable segregated
6fees for undergraduate students by more than 4 percent above the total nonallocable
7segregated fees in effect for the previous fiscal year.
AB738,3,158 2. If a majority of the undergraduate students enrolled in an institution who
9vote in a referendum that is open only to undergraduate students approve an
10increase in the total nonallocable segregated fees for undergraduate students for one
11or more fiscal years by an amount greater than the maximum increase allowed in
12subd. 1. b., the board may increase total nonallocable segregated fees for
13undergraduate students at the institution for the fiscal year or years by the amount
14approved in the referendum. This subdivision applies only if all of the following are
15satisfied:
AB738,3,1716 a. More than 10 percent of the undergraduate students enrolled in the
17institution at the time of the referendum vote to approve the increase.
AB738,3,2018 b. The ballot used in the referendum identifies the amount of the increase and
19the fiscal year or years to which the increase applies and explains the reasons for the
20increase.
AB738,3,2121 (End)
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