LRB-3738/1
FFK:eev:rs
2013 - 2014 LEGISLATURE
January 31, 2014 - Introduced by Representatives Strachota, Loudenbeck,
Knodl, Kaufert, Kulp, Thiesfeldt and Schraa, cosponsored by Senators
Olsen and Lehman. Referred to Committee on Education.
AB696,1,4 1An Act to renumber and amend 121.07 (6) (a) 1. and 2.; to amend 119.04 (1)
2and 121.07 (6) (a) (intro.); and to create 120.137 and 121.07 (6) (a) 2m. of the
3statutes; relating to: authorizing a school board to create a capital
4improvement trust fund.
Analysis by the Legislative Reference Bureau
This bill authorizes a school board that has approved a long-term capital
improvement plan that is for a minimum of 10 years to establish a trust fund for the
purpose of financing the capital improvements included in the long-term plan. The
bill prohibits a school board from spending any money deposited in the trust fund for
a period of five years from the date the trust fund is created. After the initial
five-year period, a school board may spend money in the trust fund only for the
purposes described in the school board's long-term plan. Additionally, a school board
is expressly prohibited from transferring money in the trust fund to any other school
district fund. Finally, the bill specifies that, for purposes of calculating equalization
aid, money deposited in a long-term capital improvement trust fund is counted as
a shared cost at the time the money is deposited in the trust fund and is not a shared
cost at the time the money is expended from the trust fund.

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:
AB696,1 1Section 1. 119.04 (1) of the statutes, as affected by 2013 Wisconsin Act 20, is
2amended to read:
AB696,2,123 119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
466.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
5115.345, 115.363, 115.365 (3), 115.38 (2), 115.415, 115.445, 118.001 to 118.04,
6118.045, 118.06, 118.07, 118.075, 118.076, 118.10, 118.12, 118.125 to 118.14, 118.145
7(4), 118.15, 118.153, 118.16, 118.162, 118.163, 118.164, 118.18, 118.19, 118.20,
8118.223, 118.225, 118.24 (1), (2) (c) to (f), (6), (8), and (10), 118.245, 118.255, 118.258,
9118.291, 118.292, 118.293, 118.30 to 118.43, 118.46, 118.51, 118.52, 118.53, 118.55,
10118.56, 120.12 (2m), (4m), (5), and (15) to (27), 120.125, 120.13 (1), (2) (b) to (g), (3),
11(14), (17) to (19), (26), (34), (35), (37), (37m), and (38), 120.137, 120.14, 120.21 (3), and
12120.25 are applicable to a 1st class city school district and board.
AB696,2 13Section 2. 120.137 of the statutes is created to read:
AB696,2,16 14120.137 Long-term capital improvement trust fund. (1) In this section,
15a "long-term capital improvement plan" is a capital improvement plan for at least
16a 10-year period.
AB696,2,20 17(2) A school board that has approved a long-term capital improvement plan
18may create a long-term capital improvement trust fund for the purpose of financing
19the costs of the capital improvements included in the school board's approved
20long-term capital improvement plan.
AB696,3,3
1(3) (a) A school board may not expend money deposited in a long-term capital
2improvement trust fund created under sub. (2) for a period of 5 years beginning on
3the date the trust fund is created.
AB696,3,84 (b) After the 5-year period described in par. (a), a school board may make
5expenditures from a long-term capital improvement trust fund solely for the
6purposes described in the school board's approved long-term capital improvement
7plan and may not transfer money from a long-term capital improvement trust fund
8to any other school district fund.
AB696,3 9Section 3. 121.07 (6) (a) (intro.) of the statutes is amended to read:
AB696,3,1910 121.07 (6) (a) (intro.) "Shared cost" is the sum of the net cost of the general fund
11and the net cost of the debt service fund, except that "shared cost" excludes any costs,
12including attorney fees, incurred by a school district as a result of its participation
13in a lawsuit commenced against the state, beginning with such costs incurred in the
14fiscal year in which the lawsuit is commenced, excludes any expenditures from a
15capital improvement fund created under s. 120.135 or a capital improvement trust
16fund created under s. 120.137,
and excludes the costs of transporting those transfer
17pupils for whom the school district operating under ch. 119 does not receive
18intradistrict transfer aid under s. 121.85 (6) as a result of s. 121.85 (6) (am). In this
19paragraph, "net:
AB696,3,20 201m. "Net cost of the debt service fund" includes all of the following amounts:
AB696,4 21Section 4. 121.07 (6) (a) 1. and 2. of the statutes are renumbered 121.07 (6)
22(a) 1m. a. and b., and 121.07 (6) (a) 1m. a., as renumbered, is amended to read:
AB696,4,223 121.07 (6) (a) 1m. a. If a school board makes an expenditure from a capital
24expansion fund created under s. 120.10 (10m), an amount determined by dividing the
25expenditure by the number of years in which the school district levied a tax for the

1capital project. This subdivision subd. 1m. a. applies for the number of years equal
2to the number of years in which the school district levied a tax for the capital project.
AB696,5 3Section 5. 121.07 (6) (a) 2m. of the statutes is created to read:
AB696,4,54 121.07 (6) (a) 2m. "Net cost of the general fund" includes money deposited in
5a long-term capital improvement trust fund created under s. 120.137.
AB696,4,66 (End)
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