AB304: Bill Text

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 Section 1. 67.05 (6a) (bg) of the statutes is created to read:

AB304,8,5 67.05 (6a) (bg) For a school district from which territory is detached to create a new school district under s. 117.105, the amounts specified and calculated under par. (b) shall be increased, for the construction of a building or an addition to a building only, by the amount determined as follows:

AB304,8,11 1. Determine the number of pupils in each grade level who attended school in the previous school year in a building that was then owned by the school district and has been allocated to another school district by the reorganization and who resided in the previous school year in territory that was not transferred to the other school district. The number shall be the average of such pupils enrolled on the 3rd Friday of September and the 2nd Friday of January.

AB304,8,16 2. The department of commerce shall determine for each grade level in which pupils attended school in a building described in subd. 1., the average cost per square foot for, and the average number of square feet per pupil included in, 2 recently constructed school buildings that were designed to serve pupils of that grade level, as selected by that department.

AB304,8,18 3. For each grade level, multiply the number determined under subd. 1. by the product of the 2 numbers determined under subd. 2., and total the results.

AB304, s. 2 Section 2. 67.05 (7) (j) of the statutes is created to read:

AB304,9,6 67.05 (7) (j) An initial resolution adopted by the school board of a school district created by a reorganization under s. 117.105, or adopted by the school board of a school district from which territory is detached to create a school district under s. 117.105, for the purpose of financing any assets or liabilities apportioned to the school district or assets apportioned to another school district under s. 117.105 (1m) or (2m), is not subject to a referendum.

AB304, s. 3 Section 3. 67.12 (12) (e) 2. of the statutes is amended to read:

AB304,9,25 67.12 (12) (e) 2. Unless the purpose and amount of the borrowing have been approved by the electors under s. 67.05 (6a) or deemed approved by the electors under s. 67.05 (7) (d) 3., the purpose is to refund any outstanding municipal obligation, the purpose is to pay unfunded prior service liability contributions under the Wisconsin retirement system if all of the proceeds of the note will be used for that purpose, the borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc), (h) or (i), or subd. 2g. or par. (f) or (h) applies, the school district clerk shall, within 10 days after a school board adopts a resolution under subd. 1. to issue a promissory note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch. 985. Alternatively, the notice may be posted as provided under s. 10.05. The notice need not set forth the full contents of the resolution, but shall state the maximum amount proposed to be borrowed, the purpose thereof, that the resolution was adopted under this subsection, and the place where, and the hours during which, the resolution may be inspected. If, within 30 days after publication or posting, a petition conforming to the requirements of s. 8.40 is filed with the school district clerk for a referendum on the resolution signed by at least 7,500 electors of the district or at least 20% of the number of district electors voting for governor at the last general election, as determined under s. 115.01 (13), whichever is the lesser, then the resolution shall not be effective unless adopted by a majority of the district electors voting at the referendum. The referendum shall be called in the manner provided under s. 67.05 (6a), except that the question which appears on the ballot shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its general obligation promissory note (or notes) under section 67.12 (12) of the Wisconsin Statutes?".

AB304, s. 4 Section 4. 67.12 (12) (e) 2r. of the statutes is created to read:

AB304,10,11 67.12 (12) (e) 2r. For a school district from which territory is detached to create a new school district under s. 117.105, the amounts specified and calculated under subd. 2g. shall be increased, for the construction of a building or an addition to a building only, by the amount determined as follows:

AB304,10,17 a. Determine the number of pupils in each grade level who attended school in the previous school year in a building that was then owned by the school district and has been allocated to another school district by the reorganization and who resided in the previous school year in territory that was not transferred to the other school district. The number shall be the average of such pupils enrolled on the 3rd Friday of September and the 2nd Friday of January.

AB304,10,22 b. The department of commerce shall determine, for each grade level in which pupils attended school in a building described in subd. 2r. a., the average cost per square foot for, and the average number of square feet per pupil included in, 2 recently constructed school buildings that were designed to serve pupils of that grade level, as selected by that department.

AB304,10,24 c. For each grade level, multiply the number determined under subd. 2r. a. by the product of the 2 numbers determined under subd. 2r. b., and total the results.

AB304, s. 5 Section 5. 67.12 (12) (h) of the statutes is created to read:

AB304,11,5 67.12 (12) (h) Paragraph (e) 2. does not apply to borrowing by the school board of a school district created by a reorganization under s. 117.105, or by the school board from which territory is detached to create a school district under s. 117.105, for the purpose of financing any assets or liabilities apportioned to the school district or assets apportioned to another school district under s. 117.105 (1m) or (2m).

AB304, s. 6 Section 6. 117.05 (1m) of the statutes is amended to read:

AB304,11,9 117.05 (1m) Board and appeal panel meetings. The secretary shall set the time and place for meetings of the board under ss. 117.10, 117.105 (2m), 117.12 (5) and 117.132 and for meetings of appeal panels under ss. 117.12 (4) and 117.13.

AB304, s. 7 Section 7. 117.05 (2) (a) of the statutes is amended to read:

AB304,11,18 117.05 (2) (a) Board. The secretary state superintendent shall appoint 7 members of the board to perform any review under ss. 117.10, 117.105 (2m), 117.12 (5) and 117.132. The 7 members shall include the secretary state superintendent or his or her designee on the board, 2 board members from school districts with small enrollments, 2 board members from school districts with medium enrollments and 2 board members from school districts with large enrollments. Any action of the board under this chapter requires the affirmative vote of at least 4 of the 7 members appointed under this paragraph.

AB304, s. 8 Section 8. 117.05 (4) (a) (intro.) of the statutes is amended to read:

AB304,11,24 117.05 (4) (a) Pending proceedings. (intro.) A reorganization proceeding is pending from the date that a petition is filed under s. 117.105 (1) (a), 117.11 (2) or 117.12 (2) or a resolution is adopted under s. 117.08 (1), 117.09 (1), 117.10 (1), 117.105 (1) (b), 117.13 (2) or 117.132 (2) until the date on which the latest of any of the following occurs:

AB304, s. 9 Section 9. 117.05 (4) (d) of the statutes is created to read:

AB304,12,6 117.05 (4) (d) Four-year limitation on consideration of creation of a school district. 1. Except as provided in subd. 2., no petition may be filed or resolution adopted for the creation of a new school district under s. 117.105 (1) (a) or (b) before the 5th July 1 following the filing of a petition under s. 117.105 (1) (a) or the adoption of a resolution under s. 117.105 (1) (b) for any reorganization that includes any of the same territory.

AB304,12,10 2. The limitation under subd. 1. does not apply if the school board of each affected school district adopts a resolution waiving the limitation. If a school board denies a request for a waiver under this subdivision, the denial may not be appealed under this chapter.

AB304, s. 10 Section 10. 117.05 (5) (a) of the statutes is amended to read:

AB304,12,19 117.05 (5) (a) Territory in district. All territory within this state shall be included in a school district operating elementary school grades and a school district operating high school grades or in a school district operating both elementary and high school grades. No territory may be detached from a school district unless by the same order it is attached to another school district or included in a new school district created by the order. No territory may be detached from a school district that operates high school grades unless by the same order it is attached to or included in another school district that operates high school grades.

AB304, s. 11 Section 11. 117.05 (8) of the statutes is amended to read:

AB304,13,2 117.05 (8) Information on reorganization procedures. The department shall prepare a written description of the procedures for school district reorganizations under ss. 117.08 to 117.132 and distribute copies to school district clerks. A school district clerk shall give a copy of the description to any person, upon request, and to any person filing a petition with the clerk under s. 117.08 (3) (a) 2., 117.09 (3) (a) 2., 117.105 (1) (a), 117.11 (2) or (4) (a) 2. or 117.12 (2), at the time the petition is filed.

AB304, s. 12 Section 12. 117.05 (9) (title) of the statutes is amended to read:

AB304,13,4 117.05 (9) (title) Appeal Board and appeal panel fees.

AB304, s. 13 Section 13. 117.05 (9) (a) (intro.) of the statutes is amended to read:

AB304,13,8 117.05 (9) (a) (intro.) The department may charge the following persons a fee sufficient to reimburse the department for the costs of the board under ss. 117.10, 117.105 and 117.132:

AB304, s. 14 Section 14. 117.05 (9) (a) 1. and 2. of the statutes are created to read:

AB304,13,11 117.105 (9) (a) 1. The school boards of the affected school districts under s. 117.105 if they fail to reach agreement under s. 117.105 (1m) (b).

AB304,13,13 2. A person who files a petition requesting review by the board under s. 117.105 (2m).

AB304, s. 15 Section 15. 117.05 (9) (b) of the statutes is amended to read:

AB304,13,21 117.05 (9) (b) The clerk of the school district ordering the dissolution or requesting review shall pay the fee under par. (a) 3. or 4. to the department. The clerk of each affected school district shall pay the fee under par. (a) 1. to the department. The department shall allocate the fee under par. (a) 1. among the school districts from which territory is being detached to create a new school district if there is more than one such school district. The secretary of the board shall forward the fee fees collected under par. (a) 1. and 5. to the department.

AB304, s. 16 Section 16. 117.05 (10) of the statutes is amended to read:

AB304,14,3 117.05 (10) (title) Secretary State superintendent to advise. The secretary state superintendent shall advise and consult with school boards regarding school district organization and reorganization. If, in the secretary's state superintendent's opinion, one or more school districts should be created, altered, consolidated or dissolved, he or she may make recommendations to the school boards of the affected school districts.

AB304, s. 17 Section 17. 117.105 of the statutes is created to read:

AB304,14,7 117.105 Creation of a school district. (1) Initiation of procedures. Procedures to create a school district from the territory of one or more existing school districts may be initiated by any of the following methods:

AB304,14,16 (a) Before July 1 of any year, a written petition requesting the creation of a school district may be filed with the clerk of the school district that has the highest equalized valuation of the affected school districts. The petition shall be signed by at least 20% of the total number of electors residing in the affected school districts and by at least 5% of the number of electors residing in each affected school district. The school district clerk with whom the petition is filed shall immediately send a certified notice of the petition to the school board of each affected school district and to the secretary of the board. The petition shall include the approximate boundaries of the proposed school district.

AB304,14,23 (b) Before July 1 of any year, the school board of each school district from which territory will be detached to create the proposed school district may adopt a resolution stating that the school board will consider the creation of the school district. The resolution shall include the approximate boundaries of the proposed school district. The school district clerk of each school board adopting a resolution under this paragraph shall send a certified copy of the resolution to the school boards of each of the other affected school districts and to the secretary of the board.

AB304,15,3 (1m) Hearing; boundaries; assets and liabilities. (a) Upon receipt of a petition or notice under sub. (1) (a), or upon the adoption of a resolution and the receipt of copies of resolutions adopted by the school board of each of the other affected school districts under sub. (1) (b), the school board shall hold a public hearing on the proposed reorganization.

AB304,15,15 (b) Before the November 1 following the receipt of a petition or notice under sub. (1) (a) or the adoption of resolutions under sub. (1) (b), the school boards of the affected school districts may, by the adoption of resolutions by the school boards of a majority of the affected school districts, agree on the precise boundaries of the proposed school district and the apportionment of the assets and liabilities between the affected school districts and the proposed school district according to the criteria under s. 66.03 (2c). The school boards may establish an alternative method to govern the assignment of assets and liabilities as provided in s. 66.03 (2c) (b). In determining the precise boundaries, the school boards may not detach territory from any additional school districts. The clerk of the school district that has the highest equalized valuation of the affected school districts shall notify the board of their agreement or their failure to reach agreement.

AB304,15,20 (c) If the school boards of a majority of the affected school districts fail to agree on the precise boundaries or on the apportionment of assets and liabilities by November 1 under par. (b), the board shall issue an order doing so by the following March 1. In determining the precise boundaries of the proposed school district, the board may not detach territory from any additional school districts.