(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:
AB304,12,6
1117.05
(4) (d)
Four-year limitation on consideration of creation of a school
2district. 1. Except as provided in subd. 2., no petition may be filed or resolution
3adopted for the creation of a new school district under s. 117.105 (1) (a) or (b) before
4the 5th July 1 following the filing of a petition under s. 117.105 (1) (a) or the adoption
5of a resolution under s. 117.105 (1) (b) for any reorganization that includes any of the
6same territory.
AB304,12,107
2. The limitation under subd. 1. does not apply if the school board of each
8affected school district adopts a resolution waiving the limitation. If a school board
9denies a request for a waiver under this subdivision, the denial may not be appealed
10under this chapter.
AB304, s. 10
11Section
10. 117.05 (5) (a) of the statutes is amended to read:
AB304,12,1912
117.05
(5) (a)
Territory in district. All territory within this state shall be
13included in a school district operating elementary school grades and a school district
14operating high school grades or in a school district operating both elementary and
15high school grades. No territory may be detached from a school district unless by the
16same order it is attached to another school district
or included in a new school district
17created by the order. No territory may be detached from a school district that
18operates high school grades unless by the same order it is attached to
or included in 19another school district that operates high school grades.
AB304, s. 11
20Section
11. 117.05 (8) of the statutes is amended to read:
AB304,13,221
117.05
(8) Information on reorganization procedures. The department shall
22prepare a written description of the procedures for school district reorganizations
23under ss. 117.08 to 117.132 and distribute copies to school district clerks. A school
24district clerk shall give a copy of the description to any person, upon request, and to
1any person filing a petition with the clerk under s. 117.08 (3) (a) 2., 117.09 (3) (a) 2.,
2117.105 (1) (a), 117.11 (2)
or (4) (a) 2. or 117.12 (2), at the time the petition is filed.
AB304, s. 12
3Section
12. 117.05 (9) (title) of the statutes is amended to read:
AB304,13,44
117.05
(9) (title)
Appeal
Board and appeal panel fees.
AB304, s. 13
5Section
13. 117.05 (9) (a) (intro.) of the statutes is amended to read:
AB304,13,86
117.05
(9) (a) (intro.) The department may charge the following persons a fee
7sufficient to reimburse the department for the costs of the board under ss. 117.10
,
8117.105 and 117.132:
AB304, s. 14
9Section
14. 117.05 (9) (a) 1. and 2. of the statutes are created to read:
AB304,13,1110
117.105
(9) (a) 1. The school boards of the affected school districts under s.
11117.105 if they fail to reach agreement under s. 117.105 (1m) (b).
AB304,13,1312
2. A person who files a petition requesting review by the board under s. 117.105
13(2m).
AB304, s. 15
14Section
15. 117.05 (9) (b) of the statutes is amended to read:
AB304,13,2115
117.05
(9) (b) The clerk of the school district ordering the dissolution or
16requesting review shall pay the fee under par. (a) 3. or 4. to the department.
The clerk
17of each affected school district shall pay the fee under par. (a) 1. to the department.
18The department shall allocate the fee under par. (a) 1. among the school districts
19from which territory is being detached to create a new school district if there is more
20than one such school district. The secretary of the board shall forward the
fee fees 21collected under par. (a)
1. and 5. to the department.
AB304, s. 16
22Section
16. 117.05 (10) of the statutes is amended to read:
AB304,14,323
117.05
(10) (title)
Secretary State superintendent to advise. The
secretary 24state superintendent shall advise and consult with school boards regarding school
25district organization and reorganization. If, in the
secretary's state superintendent's
1opinion, one or more school districts should be
created, altered, consolidated or
2dissolved, he or she may make recommendations to the school boards
of the affected
3school districts.
AB304, s. 17
4Section
17. 117.105 of the statutes is created to read:
AB304,14,7
5117.105 Creation of a school district.
(1) Initiation of procedures. 6Procedures to create a school district from the territory of one or more existing school
7districts may be initiated by any of the following methods:
AB304,14,168
(a) Before July 1 of any year, a written petition requesting the creation of a
9school district may be filed with the clerk of the school district that has the highest
10equalized valuation of the affected school districts. The petition shall be signed by
11at least 20% of the total number of electors residing in the affected school districts
12and by at least 5% of the number of electors residing in each affected school district.
13The school district clerk with whom the petition is filed shall immediately send a
14certified notice of the petition to the school board of each affected school district and
15to the secretary of the board. The petition shall include the approximate boundaries
16of the proposed school district.
AB304,14,2317
(b)
Before July 1 of any year, the school board of each school district from which
18territory will be detached to create the proposed school district may adopt a
19resolution stating that the school board will consider the creation of the school
20district. The resolution shall include the approximate boundaries of the proposed
21school district. The school district clerk of each school board adopting a resolution
22under this paragraph shall send a certified copy of the resolution to the school boards
23of each of the other affected school districts and to the secretary of the board.
AB304,15,3
24(1m) Hearing; boundaries; assets and liabilities. (a) Upon receipt of a petition
25or notice under sub. (1) (a), or upon the adoption of a resolution and the receipt of
1copies of resolutions adopted by the school board of each of the other affected school
2districts under sub. (1) (b), the school board shall hold a public hearing on the
3proposed reorganization.
AB304,15,154
(b) Before the November 1 following the receipt of a petition or notice under sub.
5(1) (a) or the adoption of resolutions under sub. (1) (b), the school boards of the
6affected school districts may, by the adoption of resolutions by the school boards of
7a majority of the affected school districts, agree on the precise boundaries of the
8proposed school district and the apportionment of the assets and liabilities between
9the affected school districts and the proposed school district according to the criteria
10under s. 66.03 (2c). The school boards may establish an alternative method to govern
11the assignment of assets and liabilities as provided in s. 66.03 (2c) (b). In
12determining the precise boundaries, the school boards may not detach territory from
13any additional school districts. The clerk of the school district that has the highest
14equalized valuation of the affected school districts shall notify the board of their
15agreement or their failure to reach agreement.
AB304,15,2016
(c) If the school boards of a majority of the affected school districts fail to agree
17on the precise boundaries or on the apportionment of assets and liabilities by
18November 1 under par. (b), the board shall issue an order doing so by the following
19March 1. In determining the precise boundaries of the proposed school district, the
20board may not detach territory from any additional school districts.
AB304,16,10
21(2) School board action. Before the February 1 following the determination
22of the precise boundaries of the proposed school district and the apportionment of
23assets and liabilities under sub. (1m) (b), or before the May 1 following an order
24issued by the board under sub. (1m) (c), the school board of each affected school
25district shall adopt a resolution ordering or denying the creation of the school district.
1The resolution shall state the school board's rationale for ordering or denying the
2reorganization and include an evaluation of each of the factors specified in s. 117.15.
3Failure of a school board to adopt a resolution either ordering or denying the creation
4of the school district before the applicable date required under this subsection
5constitutes a denial of the creation of the school district by that school board. The
6school district clerk of each school board adopting a resolution under this subsection,
7either ordering or denying the reorganization, shall, within 5 days after the adoption
8of the resolution, send a certified copy of the resolution to the school boards of each
9of the other affected school districts and file a certified copy of the resolution as
10provided in s. 117.17 (2).
AB304,16,12
11(2m) Board review. (a) The board shall review a proposed reorganization
12under this section if any of the following occurs:
AB304,16,1913
1. The school board of each affected school district issues an order under sub.
14(2) granting the proposed reorganization, and a petition for board review of the
15proposed reorganization, signed by at least 10% of the number of electors residing
16in the territory of the affected school districts that is not within the proposed school
17district, is filed with the secretary of the board. The petition shall be filed by March
181 following the school board action under sub. (2), or by June 1 following the school
19board action under sub. (2) if the board issued an order under sub. (1m) (c).
AB304,17,220
2. The school board of any of the affected school districts issues an order under
21sub. (2) denying the proposed reorganization, and a petition for board review of the
22proposed reorganization, signed by at least 10% of the number of electors residing
23in each affected school district, is filed with the secretary of the board. The petition
24shall be filed by March 1 following the school board action under sub. (2), or by June
11 following the school board action under sub. (2) if the board issued an order under
2sub. (1m) (c).
AB304,17,113
(b) Upon receipt of a petition for review under par. (a), the secretary of the board
4shall immediately notify the school board of each affected school district and the
5board shall hold a public hearing on the proposed reorganization. After the hearing
6and after consulting with the school boards of the affected school districts, but before
7July 1, the board may modify the boundaries of the proposed school district and the
8apportionment of assets and liabilities between the affected school districts and the
9proposed school district unless the board determined the boundaries and
10apportionment under sub. (1m) (c). The board may not modify the boundaries by
11detaching territory from any additional school districts.