This bill authorizes the MPS board to contract with any person to manage or
operate one or more schools. The bill also authorizes the MPS board to close a school
that it determines is low in performance by adopting a resolution to that effect. The
bill provides that if the board closes a school, or reopens the school, the
superintendent of schools may reassign staff members without regard to seniority
in service.
This bill directs the secretary of education to reorganize the 12 cooperative
educational service agencies (CESAs) into 15 CESAs, effective on July 1, 1997. Each
reorganized CESA is coterminous with a technical college district, except that
reorganized CESA no. 5 is coterminous with the territory of 2 technical college
districts and except that the school board of a school district that is located in more
than one technical college district must select the reorganized CESA in which the
school district will participate.
The bill adds 2 members to each technical college district board: one member
of the board of control of the CESA that is located in the district and one employe of
a school district or CESA who represents a school-to-work program. Both are
appointed by the board of control.
The bill also adds members to each CESA board of control: one member of the
technical college district board of the technical college district located in the CESA
and a representative of each University of Wisconsin System institution and center
that is located in the agency.
The bill authorizes a CESA to contract with all public and private entities and
to apply for state and federal grants for the CESA and on behalf of school districts.
This bill authorizes a school district, as an alternative to the employment of
teachers, to contract with any person for the performance of teaching or other

educational services by individuals who are licensed by the state superintendent but
who are not employes of the school district.
If a school district decides to subcontract work that would otherwise be
performed by employes in a collective bargaining unit for which a representative is
recognized or certified, and the decision is primarily related to the wages, hours or
conditions of employment of employes in the bargaining unit, the school district must
first bargain collectively with the representative concerning that decision. See
Unified School District No. 1 of Racine County v. Wisconsin Employment Relations
Commission
, 81 Wis. 2d 89 (1977).
This bill provides that the statutory duties and powers of school boards are to
be broadly construed to authorize any action that is within the comprehensive
meaning of the terms of the duties and powers, if the action is not prohibited by
federal or state law.
With certain exceptions, this bill authorizes DPI, upon request of a school
board, to waive any school board or school district requirement in the laws
administered by DPI or in the administrative rules promulgated by DPI. Before
requesting a waiver, the school board must hold a public hearing in the school district
on the issue. In determining whether to grant a waiver, DPI must consider whether
the requirement impedes progress toward achieving a local improvement plan under
the federal Goals 2000: Educate America Act, and whether the school board has
adopted educational goals. A waiver is effective for 4 years and may be renewed for
additional 4-year periods.
Under current law, teachers employed at a public school located in Milwaukee
County are permanent employes upon the gaining of a 4th contract in the school or
school system after a continuous and successful 3-year probation. This bill repeals
the permanent employment status provision.
Under current law, each school board must employ a reading specialist, licensed
by the state superintendent, to develop and coordinate a comprehensive reading
curriculum in grades kindergarten to 12. This bill eliminates the requirement to
employ a reading specialist.
Current law requires each school board to administer pupil assessment
examinations adopted or approved by the state superintendent to all pupils enrolled
in the 8th and 10th grades. A school board may administer additional examinations
only if they are aligned with the school district's curriculum. This bill eliminates this
latter requirement.
Current law requires MPS to use 67% of certain funds allocated to MPS to
provide a mentor teacher program and a peer coaching program, and the balance for
school administrator assessment and development. This bill directs MPS to use all
of these funds for professional staff development.

This bill authorizes a school board to establish a performance recognition plan
that annually allocates at least 2% of the school district's payroll, excluding the cost
of fringe benefits, for performance recognition awards to school district employes.
If a school board adopts a performance recognition plan, it must establish a
committee to develop employe performance standards and a committee to develop a
process to review employe performance and make recommendations to each
principal regarding award recipients and the amount of each award. The committees
are composed of school district employes, school administrators and parents or
guardians of pupils enrolled in the school district. The principal of each school
determines award recipients and award amounts, subject to the total amount
allocated to that school.
Currently, with certain exceptions, governmental bodies are required to
provide public notice of their meetings and meet in open session. This bill excludes
committees that make recommendations concerning school district performance
recognition awards from the application of this law.
Under current law, the general school aid appropriation is a sum certain
amount. Beginning in the 1995-96 school year, however, the appropriation is
changed to a sum sufficient. The amount appropriated is the amount necessary to
ensure that the total amount appropriated as general school aid and minimum aid
is sufficient to allow school districts the maximum revenue increase possible under
the school district revenue limit, as determined by the joint committee on finance
(JCF). This bill maintains the general school aid appropriation as a sum certain
amount.
Under the current school aid formula, the guaranteed valuation is the amount
of property tax base support that the state guarantees to each pupil. The current
formula has 2 levels of state support, a primary guaranteed valuation and a
secondary guaranteed valuation. The secondary guaranteed tax base applies to costs
above a certain level. Because the secondary guarantee is lower than the main,
primary guarantee, it generates less state aid on the costs to which it applies. The
dividing point between use of the primary and secondary guarantees is called the
primary ceiling cost per member. Currently, the primary ceiling cost per member is
set annually at the previous school year's ceiling increased by the percentage change
in the CPI.
This bill adds a tertiary level of state support beginning in the 1996-97 school
year. Under the bill, the primary ceiling cost per member is $1,000. In the 1996-97
school year, the secondary ceiling cost per member is the 1995-96 primary ceiling
cost per member increased by the percentage change in the CPI. Thereafter, the
secondary ceiling cost per member is the secondary ceiling cost per member in the
previous school year increased by the percentage change in the CPI.
Under current law, a school district may receive minimum state aid in an
amount that is based on the district's median household income and the amount of
aid that it receives under the school equalization aid formula. The current amount
that a school district may receive under the minimum state aid program is a

minimum of $175 per pupil and a maximum of $400 per pupil. This bill eliminates
the minimum aid program beginning in the 1996-97 school year.
Current law limits the increase in the total amount of revenue that a school
district may receive from general school aids and property taxes in the 1993-94 to
1997-98 school years. In the 1993-94 school year, the maximum allowable increase
per pupil was $190 or the per pupil revenue amount multiplied by the rate of
inflation, whichever was greater. Beginning in the 1994-95 school year, the $190 per
pupil amount is adjusted each year by the rate of inflation. The limit is based on the
difference between the average of the number of pupils enrolled in the 3 previous
school years and the average of the number of pupils enrolled in the current and 2
preceding school years. If a school district exceeds its revenue limits, the state
superintendent is required to deduct from the district's general state aid (or other
state aids, if necessary) an amount equal to the excess revenue. If these state aids
are not sufficient to cover the amount of the excess revenue, the state superintendent
must order the school board to reduce the property tax obligations of its taxpayers
by an amount that equals the remaining excess revenue after the deduction of state
aids. If these property tax obligations are not reduced, any resident in the school
district may seek injunctive relief in court. The state superintendent must also make
sure that any such reductions in state aid lapse to the general fund and that the
amount of the excess revenue is not used in calculating the school district's revenue
limit in the following year.
This bill modifies the formula used to compute a school district's revenue limit
by expanding the types of school aid under the limit. The bill includes in state aid
all current categorical aids to schools that are formula-driven, such as handicapped
education aid and pupil transportation aid. The bill does not include those
categorical aids that are grant programs.
The bill also makes the revenue limits permanent and freezes the allowable
annual increase in revenue per pupil at $194 beginning in the 1995-96 school year.
The bill exempts from the revenue limits those school districts whose base
revenue per pupil is less than $5,200 in the 1995-96 school year and $5,500 in each
subsequent school year. Base revenue per pupil is determined by calculating the sum
of general school aid received in the previous year and property taxes levied for the
previous year, less funds expended on school district debt service, and the costs of a
county handicapped children's education board program, dividing this amount by
the sum of the average of the number of pupils in the 3 previous school years and the
number of pupils who are school district residents who are solely enrolled in a special
education board program provided by a county handicapped children's education
board program in the previous school year, and adding $194 to the quotient.
Finally, if a school district exceeds its revenue limit, the bill provides that the
reductions in state aid that lapse to the general fund are to be paid to the school
district in the succeeding school year. The school board is required to reduce the
school district's property tax levy by an amount that equals the amount that lapsed
to the general fund in the prior school year.

Currently, with certain exceptions, no school district may grant to its
nonrepresented professional employes for any 12-month period ending on June 30
an average increase in compensation, for all such employes, prior to July 1, 1996,
having an average cost per employe of more than 2.1% of the total cost per employe
of compensation and fringe benefits provided by the district to its nonrepresented
professional employes.
This bill provides, instead, that no school district may grant to its
nonrepresented professional employes for any 12-month period ending on June 30
an average increase in compensation, for all such employes, prior to July 1, 1996,
having an average cost per employe exceeding the highest average total percentage
increased cost per employe of compensation provided by the school district to its
represented employes in any collective bargaining unit during either of the 2 most
recent 12-month periods ending on June 30 preceding the date that the increase for
nonrepresented professional employes becomes effective.
This bill eliminates the reimbursement rates for handicapped education costs
and school age parents program costs of 63% for program staff and transportation
costs and 51% for the costs of psychologists and social workers. The bill directs that
aidable costs be fully reimbursed, subject to the availability of funds.
Under current law, the state provides state aid to school districts to support
voluntary efforts by school districts to reduce racial imbalance. Aid is provided for
both interdistrict transfer and intradistrict transfer programs. Aid for an
intradistrict transfer program is calculated by multiplying the general state aid per
pupil in the school district by the number of pupils participating in the program,
weighted such that each transfer pupil is counted as an additional 0.325 of a pupil.
Interdistrict transfer aid is calculated in such a manner that each transfer pupil
continues to be counted as 1.0 pupil in aid by the school district of residence; the
gaining school district is paid the per pupil cost of that school district for each
transfer pupil or, if such pupils constitute at least 5% of the total enrollment of the
gaining school district, 20% more.
Beginning in the 1996-97 school year, this bill provides that the gaining school
district is paid, for each interdistrict transfer pupil, the per pupil cost in the gaining
school district or $7,000, whichever is less.
The bill also provides that if a school district receives intradistrict transfer aid
in the 1995-96 school year, in each subsequent school year its aid may not exceed the
amount determined by multiplying the amount per transfer pupil received in the
previous school year by the CPI. If a school district does not receive intradistrict aid
in the 1995-96 school year, its aid in the first school year in which it receives such
aid is calculated as under current law. In each subsequent school year, its aid may
not exceed the amount determined by multiplying the amount per transfer pupil
received in the previous school year by the CPI.
Current law appropriates money to DPI for the purposes of correcting the
academic deficiencies of educationally and economically disadvantaged pupils and
achieving a more effective and responsive educational program in MPS. In the

1993-94 school year, the funds were distributed according to a plan developed by the
governor and the state superintendent and approved by JCF.
For the 1995-96 school year, this bill directs the MPS school board to submit
a proposal for the expenditure of the funds to the governor for his or her approval.
In subsequent school years, the governor must submit a proposal to JCF for its
approval.
Under current law, DPI awards grants to school districts for various programs,
including all of the following:
1. Learning assistance programs.
2. Programs that enhance the instruction of mathematics and science in the
elementary grades.
3. Staff development programs.
4. Programs designed to promote the interaction of pupils and teachers with
professional scientists, engineers and mathematicians.
5. Human growth and development programs.
This bill eliminates all of the above grant programs.
This bill authorizes DPI and the division of technology management in the
department of administration (DOA), which is created by the bill, jointly to award
a grant to a school district, or to a school district acting in conjunction with one or
more other school districts, cooperative educational service agencies or technical
college districts, for the purchase of instructional technology and the cost of
providing staff development and training related to instructional technology.
Current law requires the state superintendent to adopt or approve
examinations that are designed to measure pupil attainment of knowledge in the 8th
and 10th grades. Each school board must administer the examinations to all pupils
enrolled in the school district in the 8th and 10th grades. The pupil assessment
program expires at the end of the 1997-98 school year.
This bill eliminates the expiration of the program. The bill directs the state
superintendent to adopt or approve a 4th grade examination as well, and requires
each school board to administer the examination to all pupils enrolled in the school
district in the 4th grade beginning in the 1996-97 school year. The bill authorizes
school boards to administer the examination in the 1995-96 school year.
Under current law, the term of an employment contract of a school district
administrator, business manager or school principal or assistants to such persons
may not exceed 2 years and must expire on June 30 of an odd-numbered year.
This bill eliminates the restriction on term length and eliminates the
requirement that contracts expire on June 30 of an odd-numbered year. The bill
provides that the initial employment contract must be for a term of at least 2 years.
The bill also provides that if the employing school board fails to give notice of either
renewal of the contract or of refusal to renew the contract at least 4 months before
it expires, the contract then in force continues for 2 years.

Current law provides that a pupil may be suspended from school for
noncompliance with school rules, or for knowingly conveying any threat or false
information concerning an attempt or alleged attempt being made or to be made to
destroy any school property by means of explosives, or for conduct while at school or
while under the supervision of a school authority that endangers the property, health
or safety of others, or for conduct while not at school or while not under the
supervision of a school authority that endangers the property, health or safety of
others at school or under the supervision of a school authority or endangers the
property, health or safety of any employe or school board member of the school
district in which the pupil is enrolled.
A school board may expel a pupil from school if it finds that the pupil engaged
in any of the conduct described above or finds the pupil guilty of repeated refusal or
neglect to obey the rules, and is satisfied that the interest of the school demands the
pupil's expulsion.
This bill provides that a pupil may be suspended or expelled for conduct while
going to or coming from school that endangers the property, health or safety of others.
Current law requires each school board to provide safe and healthful facilities.
This bill requires, in addition, that each school board ensure that facilities,
school-related events and school-related transportation be provided in a manner
that is completely safe for both pupils and adults.
Current law directs the state superintendent annually to conduct a general
on-site audit of at least 10% of all school districts to ensure compliance with the
state's educational standards. This bill eliminates this requirement. Instead, the
bill directs DPI to conduct an inquiry into compliance with the standards upon
receipt of a complaint, and authorizes DPI, on its own initiative, to conduct an audit.
Under current law, the school district administrator and business manager of
every school district other than MPS are required to be licensed by the state
superintendent. In Milwaukee, prior to July 1, 1995, the school board may appoint
a school district administrator who is not licensed. This bill deletes the expiration
date for the school district administrator provision in MPS and also authorizes the
MPS board to employ a business manager who is not licensed by the state
superintendent.
Current law authorizes the state superintendent to maintain a summer school
for deaf persons at the school for the deaf and requires a summer school for visually
handicapped adults at the school for the visually handicapped. This bill allows the
state superintendent to maintain a summer school for visually handicapped minors
at the school for the visually handicapped.
Current law directs MPS to establish one or more youth service centers for the
counseling of children who are taken into custody for being absent from school
without an acceptable excuse. MPS must contract with the Boys and Girls Clubs of
Greater Milwaukee for the operation of the centers. Under current law, state funding
for the centers is due to expire at the end of the 1994-95 fiscal year. This bill extends

the funding through the 1995-96 fiscal year. Beginning on July 1, 1996, the bill
provides that MPS may establish such centers. Currently, all other school districts
are authorized, but not required, to establish such centers.
The bill also continues state funding, through the 1995-96 school year, for the
salaries and fringe benefit costs for up to 4 law enforcement officers in the city of
Milwaukee to work in truancy abatement and burglary supression.
Higher education
University of Wisconsin Hospitals and Clinics Authority
This bill creates a public body corporate and politic to be known as the
University of Wisconsin Hospitals and Clinics Authority (authority). The board of
directors of the authority consists of 5 members nominated by the governor, and with
the advice and consent of the senate appointed, for 5-year terms; the president of the
board of regents of the University of Wisconsin (UW) System; the chancellor of the
UW-Madison; a dean of a UW-Madison health professions school; and the secretary
of administration.
The bill requires the authority to negotiate and enter into a lease agreement
with the board of regents for the management and operation of the UW Hospitals and
Clinics (UWHC). The bill requires that the lease agreement provide for a payment
from the authority to the state that is at least equal to the debt service accruing on
all bonds issued by the state for the purpose of financing the acquisition, construction
or improvement of the leased facilities, or a nominal amount determined by the
parties to be necessary to prevent the lease agreement from being unenforceable due
to a lack of consideration. The bill also requires that the lease agreement include a
provision that requires the authority to conduct its operations in such a way so as to
ensure that it will not adversely affect the exclusion of interest on bonds issued by
the state from gross income for federal income tax purposes. In addition, the bill
requires that the lease agreement include a provision that requires that the board
of regents make a payment to the authority equal to the unencumbered balance on
June 30, 1996, in the appropriation account for the operating expenses of UWHC.
The authority is granted the power to design, acquire, construct or improve
facilities. Unlike most buildings, structures and facilities constructed for the UW
System, buildings, structures or facilities constructed for the benefit or use of the
authority need not have the approval of the legislature, the building commission or
the governor or the board of regents. Construction or improvement projects of the
authority must comply with other applicable state laws and regulations, but are
generally exempt from municipal ordinances and regulations except for zoning. The
authority may construct or improve facilities that are on state-owned land only with
the approval of the department of administration (DOA) and, with respect to land
that is not under the control of the board of regents, with the approval of the
appropriate state agency.
The authority is authorized to adopt bylaws and rules for the regulation of its
affairs; to sue and be sued; to have a seal and alter it; to have perpetual existence;
to negotiate and enter into leases; to make and execute contracts and other
instruments necessary or convenient to the exercise of its powers; to design and
construct or improve any authority facility; to procure insurance on its debt

obligations; to employ persons and set compensation and other benefits; to enter into
contracts with the UW System, subject to certain limitations; and to appoint certain
committees.
In addition, the authority is authorized, with any other person, to establish,
govern and participate in the operation and financing of any entity that provides
health-related services, as well as provide administrative and financial services to
any such entity. Such an entity is not subject to state control or oversight and is not
required to be subject to authority control or oversight.
Under the bill, the authority is required to submit annually an audited
financial statement and a report of the authority's activities and accomplishments
to the governor, legislature, secretary of administration and the president of the
board of regents; to develop and implement a personnel structure and employment
policies; to obtain liability and property insurance; to contract for legal services; and
to establish the authority's annual budget and monitor the fiscal management of the
authority.
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