Each school board must hold a public hearing on the proposed reorganization.
Two or more school boards of the affected school districts may hold a joint public
hearing.
After the public hearing, the school boards of the affected school districts may
agree on the precise boundaries and the allocation of assets and liabilities between
the affected school districts and the new school district if the school boards of a
majority of the affected school districts adopt resolutions by November 1 following
the initiation of reorganization. If a majority of the school boards fails to agree on
the precise boundaries and fails to allocate the assets and liabilities by that date, the
school district boundary appeal board (SDBAB) must draw the precise boundaries
and allocate the assets and liabilities. In addition, the department of public
instruction (DPI) must charge the affected school boards a fee sufficient to reimburse
DPI for the costs of SDBAB. In determining the precise boundaries, neither the
school board nor SDBAB may detach territory from any additional school districts.
The assets and liabilities of the affected school districts must be allocated
among the affected school districts and the new school district in proportion to the
equalized valuations of all taxable property in the affected school districts and the
new school district. The boards of the affected school districts may establish an
alternative method to apportion assets and liabilities.
3. Decision of the school boards
After the precise boundaries have been drawn and the assets and liabilities
have been allocated, the school board of each affected school district must adopt a
resolution granting or denying the reorganization. The resolution must state the
school board's rationale and include an evaluation of the following factors:
(a) The geographical and topographical characteristics of the affected school
districts, including the estimated travel time to and from school for pupils in the
school districts.
(b) The educational needs of all the children residing in the affected school
districts, the educational programs currently offered by each affected school district
and the ability and commitment of each school district to meet those needs and
continue to offer those educational programs.
(c) Whether the creation of the new school district will have any adverse effect
on the programs currently offered by the affected school districts.
(d) The testimony of and written statements filed by the residents of the
affected school districts.
(e) The estimated fiscal effect of the proposed reorganization on the affected
school districts, including the effect of the apportionment of assets and liabilities.
(f) Whether the proposed creation of a new school district will make any part
of an affected school district's territory noncontiguous.
(g) The socioeconomic level and racial composition of the pupils who reside or
will reside in territory proposed to be included in the new school district; the
proportion of the pupils who reside in such territory who are children at risk; and the
effect that the pupils will have on the present and future socioeconomic level and
racial composition of the affected school districts and on the proportion of the affected
school district's enrollments that will be children at risk.
(h) Other appropriate factors.
The failure of a school board to adopt a resolution either ordering or denying the
creation of the school district before the required date constitutes a denial of the
creation of the school district by that school board. If any of the affected school boards
denies the reorganization and no electors file a petition for review by SDBAB of the
school boards' decision, the process ends and the reorganization does not occur. If all
the affected school boards grant the reorganization and the electors do not file a
petition for review, a referendum is held.
4. Review by SDBAB
If all the affected school boards grant the reorganization, a petition for review
by SDBAB may be filed if it is signed by 10% or more of the electors residing in the
territory of the affected school districts that is not located within the proposed new
school district. If any of the affected school districts denies the reorganization, a
petition for review by SDBAB may be filed if it is signed by 10% or more of the electors
residing in each affected school district.
If a petition for review is filed, SDBAB must hold a public hearing. After the
hearing and after consulting with the affected school boards, SDBAB may modify the
proposed boundaries and the allocation of assets and liabilities, unless SDBAB drew
the boundaries and made the allocation. If SDBAB modifies the proposed boundaries
or allocation of assets and liabilities, the school boards of the affected school districts
have another opportunity to vote on the proposed reorganization before SDBAB
issues its decision.
SDBAB must issue a written decision granting or denying the reorganization,
which states its rationale and evaluation of each of the factors listed in section A.3.
If SDBAB does not grant the reorganization, there is no reorganization. If SDBAB
grants the reorganization, a referendum of electors is held.
DPI may charge the person filing the petition for review a fee sufficient to
reimburse DPI for the costs of SDBAB.
5. Referendum for final approval; election of school board; effective date of
reorganization; appeal to court
If the affected school boards or SDBAB grants the reorganization, the proposed
reorganization must also be approved at a referendum by electors residing in the
territory of the proposed new school district. If the referendum fails to approve the
reorganization, no reorganization occurs. If the referendum approves the
reorganization, the reorganization takes effect either on the next July 1 or on the 2nd
July 1, if the members of the new school board, who are elected at the spring election,
choose to delay the effective date of the reorganization for one year. Members of the
school board of the new school district who are elected at the first election must reside
in the territory of the school district that will be created. If a person elected to the
school board of the new school district is also a member of a school district from which
territory was detached to create the new school district, he or she is not eligible to
serve on the school board of the new school district unless he or she resigns as a
member of the school board of the other school district.
Any person aggrieved by SDBAB's granting or denial of the proposed
reorganization may appeal to circuit court.
B. PROVISIONS APPLICABLE AFTER THE REORGANIZATION
1. Revenue limits and state aid
School districts from which territory was detached to create the new school
district receive state equalization aid based on their previous year's per member
equalized valuations, enrollments and costs, as current law provides. In addition:
(a) In the school year in which the reorganization takes effect, the existing
school districts' revenue limits are increased by an amount equal to 10% of their state
aid; and
(b) In each of the following 4 school years, the school districts' primary and
secondary cost ceilings per member and their primary, secondary and tertiary
guaranteed valuations per member are multiplied by 1.1. The additional state aid
generated by these 10% adjustments is not subject to revenue limits.
The 3-year rolling membership average used to reflect changes of membership
under the current revenue limits applies to a school district's loss of membership due
to the loss of territory to the new school district created by the reorganization.
The revenue limit for the new school district for its first year of operation is
calculated by multiplying the previous year's per pupil revenue for each existing
school district by the number of pupils enrolled in that school district during the
previous school year who resided in territory that was detached from that school
district to create the new school district. The per pupil revenues of each existing
school district are then added and the sum is divided by the total number of pupils
residing in the detached territory who were enrolled in the previous school year in
the school district from which the territory was detached. The allowable revenue
increase for the current school year is added and the resulting sum is multiplied by
the greater of:
(a) The total number of pupils residing in the detached territory who were
enrolled in the previous school year in the school district from which the territory was
detached; or
(b) The number of pupils enrolled in the new school district as determined by
its 3rd Friday of September pupil count for the current school year.
After the first year of operation of the new school district, its revenue limit is
computed as the revenue limit for other school districts is computed, with
appropriate adjustments to reflect that pupil counts cannot be averaged over 3 years
until a school district has been in operation for that long.
2. Referenda for borrowing to finance the allocation of assets and liabilities
Under current law, if a school district proposes to borrow through the issuance
of promissory notes in excess of $5,000 or through the issuance of bonds in any
amount, a referendum may be required if the amount to be borrowed causes the
school district's outstanding indebtedness incurred without a referendum (excluding
debt incurred before August 9, 1989) to exceed the lesser of $1,000,000 or 1.5% of the
statewide average equalized valuation per member multiplied by the school district's
membership.
This bill creates an exception to these referenda provisions that allows both the
new school district and the school districts from which territory was detached,
without holding a referendum, to issue bonds or promissory notes to finance any
assets or liabilities apportioned to them under the reorganization or to finance any
assets, including cash, apportioned to another school district. In addition, the
revenue limits of the school districts issuing the notes or bonds is increased by the
amount of the funds needed to pay the general obligation debt service on the
borrowed amounts.
3. Referenda for borrowing to finance new construction
For the construction of a building or an addition to a building by a school district
from which territory is detached to create the new school district, the
$1,000,000/1.5% limit described in section B.2. is increased by an amount calculated
by determining the average number of pupils in each grade on the 3rd Friday of
September and the 2nd Friday of January of the previous school year who both
attended school in a building owned then by the school district that is allocated to
another school district under the reorganization and who resided in the previous
school year in territory that was not transferred to the new school district. The
department of commerce then determines for each of the grades attended by a pupil
in the building just described the average cost per square foot for, and the average
number of square feet per pupil included in, 2 recently constructed school buildings,
selected by the department of commerce, designed to serve pupils of that grade level.
The number of square feet per pupil for each grade level is then multiplied by the
average number of pupils in each grade, as determined earlier.
4. Waivers
Under current law, if a school district has failed to operate a school as required
by law for 2 or more successive years, SDBAB must attach the school district's
territory to one or more school districts that do operate schools.
This bill clarifies that failing to operate a school district as required by law
means failing to operate sufficient classes in each grade to provide all pupils who
reside in the school district an opportunity to attend class in the appropriate grade.
The bill also provides that the school board of a school district created by the
reorganization under the bill may request DPI to extend the 2-year time period by
one year. DPI must grant the extension and may renew the extension for additional
one-year periods if DPI determines that the school district has adequate plans and
is making adequate progress toward operating sufficient classes in each grade to
provide all pupils who reside in the school district an opportunity to attend class in
the appropriate grade. The bill also provides that if a school district created under
this bill fails to operate as required by law, SDBAB must reattach the territory of the
school district to each of the school districts from which the territory was detached
by the reorganization, unless the school district from which the territory was
detached in no longer an operating school district.
5. Interim attendance of pupils and high school seniors
The school boards of the new school district and a school district from which
territory was detached to create the new school district must permit a pupil who
resides in that territory to continue to attend school in that school district until the
new school district begins offering instruction at the pupil's grade level. The new
school district must pay tuition for the pupil. In addition, the school boards of the
new school district and a school district from which territory was detached to create
the new district must allow a pupil who resides in such territory and who has gained
12th grade status to continue to attend school in his or her old school district even
though the pupil is no longer a resident of that school district. The school board of
the new school district must pay tuition for the pupil.
6. Employes
For 3 years after the effective date of the reorganization, any employe of a school
district from which territory was detached to create the new school district who is
laid off as a result of the reorganization has priority over other persons for new
positions and vacant positions in the new school district for which the employe is
qualified.
C. OTHER
Unless an existing school district operates only elementary grades, a school
district may not be created under this bill having the same boundaries as the existing
school district would have if territory were detached from one or more other school
districts and attached to the existing school district.
No school district created under this bill may be consolidated with or be
attached to another school district within 10 years after the date of reorganization
unless the school district was created by detaching territory from a single school
district, and the consolidation or attachment will consolidate the school district with,
or reattach its territory to, the school district from which its territory was detached
by the reorganization that created the school district.
No petition may be filed or resolution adopted for the creation of a new school
district on or before the 5th July 1 following the filing of a petition to create a new
school district or the adoption of a resolution to create a new school district for any
reorganization that includes any of the same territory unless the school board of each
affected school district adopts a resolution waiving this limitation. If a school board
denies a request for a waiver of the limitation, the denial may not be appealed under
the provisions governing school district reorganizations.
The school district clerk must provide a description, prepared by DPI, about
reorganization procedures to any person filing a petition to initiate a reorganization
under this bill, as well as to any person filing a petition for a referendum under this
bill.
D. TIMETABLE
The following timetable applies to reorganizations under this bill:
1. Before July 1: Electors file a petition or school boards adopt resolutions to
initiate the process.
2. Before November 1: School boards may draw precise boundaries and allocate
assets and liabilities.
3. Before February 1: If school boards draw precise boundaries and allocate
assets and liabilities, school boards must issue written decisions on the
reorganization.
4. Before March 1: If school boards fail to draw precise boundaries and allocate
assets and liabilities, SDBAB does so. If school boards have drawn precise
boundaries, allocated assets and liabilities and issued written decisions on the
reorganization, electors may appeal the school boards' decision.
5. Before May 1: If SDBAB draws precise boundaries and allocates assets and
liabilities because the school boards failed to do so, the school boards must issue
written decisions.
6. Before June 1: Electors may appeal the written decisions of school boards
if SDBAB drew the precise boundaries and allocated assets and liabilities.
7. Before July 1: If electors appeal the written decision of school boards that
have drawn precise boundaries and allocated assets and liabilities, SDBAB must
notify school boards if it modifies proposed boundaries or allocation of assets and
liabilities.
8. Before August 1: School boards vote again if SDBAB modifies proposed
boundaries or allocation of assets and liabilities.
9. Before October 1: SDBAB issues its opinion if an appeal was filed.
10. Before Tuesday following 1st Monday in November: Referendum is held in
the new school district if the school boards approve the reorganization or, if an appeal
was filed, if SDBAB approves the reorganization.
11. Before or at the spring election: Election held for school board members for
the new school district.
12. July 1 or next July 1: Effective date of the reorganization.
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:
AB304, s. 1
1Section
1. 67.05 (6a) (bg) of the statutes is created to read:
AB304,8,52
67.05
(6a) (bg) For a school district from which territory is detached to create
3a new school district under s. 117.105, the amounts specified and calculated under
4par. (b) shall be increased, for the construction of a building or an addition to a
5building only, by the amount determined as follows:
AB304,8,116
1. Determine the number of pupils in each grade level who attended school in
7the previous school year in a building that was then owned by the school district and
8has been allocated to another school district by the reorganization and who resided
9in the previous school year in territory that was not transferred to the other school
10district. The number shall be the average of such pupils enrolled on the 3rd Friday
11of September and the 2nd Friday of January.
AB304,8,1612
2. The department of commerce shall determine for each grade level in which
13pupils attended school in a building described in subd. 1., the average cost per square
14foot for, and the average number of square feet per pupil included in, 2 recently
15constructed school buildings that were designed to serve pupils of that grade level,
16as selected by that department.
AB304,8,1817
3. For each grade level, multiply the number determined under subd. 1. by the
18product of the 2 numbers determined under subd. 2., and total the results.
AB304, s. 2
19Section
2. 67.05 (7) (j) of the statutes is created to read:
AB304,9,6
167.05
(7) (j) An initial resolution adopted by the school board of a school district
2created by a reorganization under s. 117.105, or adopted by the school board of a
3school district from which territory is detached to create a school district under s.
4117.105, for the purpose of financing any assets or liabilities apportioned to the
5school district or assets apportioned to another school district under s. 117.105 (1m)
6or (2m), is not subject to a referendum.
AB304, s. 3
7Section
3. 67.12 (12) (e) 2. of the statutes is amended to read:
AB304,9,258
67.12
(12) (e) 2. Unless the purpose and amount of the borrowing have been
9approved by the electors under s. 67.05 (6a) or deemed approved by the electors under
10s. 67.05 (7) (d) 3., the purpose is to refund any outstanding municipal obligation, the
11purpose is to pay unfunded prior service liability contributions under the Wisconsin
12retirement system if all of the proceeds of the note will be used for that purpose, the
13borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc),
14(h) or (i), or subd. 2g.
or par. (f) or (h) applies, the school district clerk shall, within
1510 days after a school board adopts a resolution under subd. 1. to issue a promissory
16note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch.
17985. Alternatively, the notice may be posted as provided under s. 10.05. The notice
18need not set forth the full contents of the resolution, but shall state the maximum
19amount proposed to be borrowed, the purpose thereof, that the resolution was
20adopted under this subsection, and the place where, and the hours during which, the
21resolution may be inspected. If, within 30 days after publication or posting, a petition
22conforming to the requirements of s. 8.40 is filed with the school district clerk for a
23referendum on the resolution signed by at least 7,500 electors of the district or at
24least 20% of the number of district electors voting for governor at the last general
25election, as determined under s. 115.01 (13), whichever is the lesser, then the
1resolution shall not be effective unless adopted by a majority of the district electors
2voting at the referendum. The referendum shall be called in the manner provided
3under s. 67.05 (6a), except that the question which appears on the ballot shall be
4"Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its
5general obligation promissory note (or notes) under section 67.12 (12) of the
6Wisconsin Statutes?".
AB304, s. 4
7Section
4. 67.12 (12) (e) 2r. of the statutes is created to read:
AB304,10,118
67.12
(12) (e) 2r. For a school district from which territory is detached to create
9a new school district under s. 117.105, the amounts specified and calculated under
10subd. 2g. shall be increased, for the construction of a building or an addition to a
11building only, by the amount determined as follows:
AB304,10,1712
a. Determine the number of pupils in each grade level who attended school in
13the previous school year in a building that was then owned by the school district and
14has been allocated to another school district by the reorganization and who resided
15in the previous school year in territory that was not transferred to the other school
16district. The number shall be the average of such pupils enrolled on the 3rd Friday
17of September and the 2nd Friday of January.
AB304,10,2218
b. The department of commerce shall determine, for each grade level in which
19pupils attended school in a building described in subd. 2r. a., the average cost per
20square foot for, and the average number of square feet per pupil included in, 2
21recently constructed school buildings that were designed to serve pupils of that grade
22level, as selected by that department.
AB304,10,2423
c. For each grade level, multiply the number determined under subd. 2r. a. by
24the product of the 2 numbers determined under subd. 2r. b., and total the results.
AB304, s. 5
25Section
5. 67.12 (12) (h) of the statutes is created to read:
AB304,11,5
167.12
(12) (h) Paragraph (e) 2. does not apply to borrowing by the school board
2of a school district created by a reorganization under s. 117.105, or by the school
3board from which territory is detached to create a school district under s. 117.105,
4for the purpose of financing any assets or liabilities apportioned to the school district
5or assets apportioned to another school district under s. 117.105 (1m) or (2m).
AB304, s. 6
6Section
6. 117.05 (1m) of the statutes is amended to read:
AB304,11,97
117.05
(1m) Board and appeal panel meetings. The secretary shall set the time
8and place for meetings of the board under ss. 117.10,
117.105 (2m), 117.12 (5) and
9117.132 and for meetings of appeal panels under ss. 117.12 (4) and 117.13.
AB304, s. 7
10Section
7. 117.05 (2) (a) of the statutes is amended to read:
AB304,11,1811
117.05
(2) (a)
Board. The
secretary state superintendent shall appoint 7
12members of the board to perform any review under ss. 117.10,
117.105 (2m), 117.12
13(5) and 117.132. The 7 members shall include the
secretary state superintendent or
14his or her designee on the board, 2 board members from school districts with small
15enrollments, 2 board members from school districts with medium enrollments and
162 board members from school districts with large enrollments. Any action of the
17board under this chapter requires the affirmative vote of at least 4 of the 7 members
18appointed under this paragraph.
AB304, s. 8
19Section
8. 117.05 (4) (a) (intro.) of the statutes is amended to read:
AB304,11,2420
117.05
(4) (a)
Pending proceedings. (intro.) A reorganization proceeding is
21pending from the date that a petition is filed under s.
117.105 (1) (a), 117.11 (2) or
22117.12 (2) or a resolution is adopted under s. 117.08 (1), 117.09 (1), 117.10 (1),
117.105
23(1) (b), 117.13 (2) or 117.132 (2) until the date on which the latest of any of the
24following occurs:
AB304, s. 9
25Section
9. 117.05 (4) (d) of the statutes is created to read: