AB959: Bill Text

LRB-5355/1

PG:kaf&skg:kat

1995 - 1996 LEGISLATURE

1995 Assembly BILL 959

February 26, 1996 - Introduced by Representatives Walker, Duff, Gunderson, Dobyns, Turner, Plache, Powers, Musser, R. Potter and Lorge, cosponsored by Senators Rosenzweig and Darling. Referred to Committee on Education.

AB959,1,2 An Act to create 121.91 (4) (c) 3. of the statutes; relating to: the adjustment to a school district's revenue limit for debt service.

Analysis by the Legislative Reference Bureau

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 1995-96 school year, the maximum allowable increase per pupil is $200. In each school year thereafter, the maximum allowable increase is $206. 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. Under current law, revenues needed for the payment of debt service authorized prior to August 12, 1993, by school board resolution or by referendum, or authorized on or after August 12, 1993, by referendum, are excluded from the limit.

This bill provides that revenues needed for the payment of debt service authorized by school board resolution (without a referendum) are excluded from the limit under certain circumstances. The debt must be issued to repair, maintain or renovate existing school district facilities or equipment. In addition, the exclusion applies only if the debt issue does not increase the school district's levy for debt service to an amount that is greater than the amount of the school district's levy for debt service in 1992, and only if the amount of the school district's outstanding indebtedness incurred under the new provision since August 12, 1993, does not exceed an amount equal to 3% of the value of the school district's facilities and equipment in the previous school year.

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:

AB959, s. 1 Section 1. 121.91 (4) (c) 3. of the statutes is created to read:

AB959,2,6 121.91 (4) (c) 3. Funds needed for the payment of any general obligation debt service on debt that is authorized by a resolution of the school board and secured by the full faith and credit of the school district and issued to repair, maintain or renovate existing school district facilities or equipment. This subdivision applies only if all of the following apply:

AB959,2,10 a. The debt issue does not increase the school district's levy for debt service to an amount that is greater than the amount of the school district's levy for debt service in 1992, including any increases to the school district's limit occurring as a result of subd. 1. or 2., as determined by the department.

AB959,2,14 b. The amount of outstanding indebtedness of the school district incurred under this subdivision without a referendum since August 12, 1993, does not exceed an amount equal to 3% of the value of the school district's facilities and equipment in the previous school year, as determined by the department.

AB959, s. 2 Section 2. Effective date.

AB959,2,16 (1) This act takes effect retroactively to August 12, 1993.

AB959,2,17 (End)