SB312: Bill Text

LRB-3941/2

MJL:jlg:mrc

1999 - 2000 LEGISLATURE

1999 Senate BILL 312

December 22, 1999 - Introduced by Senators Burke, Clausing, Erpenbach, Moen, Moore, Plache and Schultz, cosponsored by Representatives Plouff, Musser, Bock, Gronemus, Hasenohrl, Krug, Lassa, J. Lehman, Miller, Reynolds, Richards, Riley, Ryba and Sykora. Referred to Committee on Education.

SB312,1,9 An Act to repeal 20.255 (2) (bc), 20.835 (3) (b), 79.10 (4), 79.10 (7m) (a) 1., 79.14, 118.153 (2) (b), 118.153 (3) (a) (intro.) and 1. and 118.153 (4) and (5); to renumber 79.10 (7m) (a) 2. and 118.153 (2) (a); to renumber and amend 118.153 (3) (a) 2.; to amend 13.101 (6) (a), 41.41 (10) (b), 41.41 (10) (c) 1., 74.09 (3) (b) 3., 79.10 (6m), 118.153 (6), 118.153 (7), 121.004 (7) (a), 121.007, 121.07 (7) (b), 121.08 (2), 121.15 (3m) (b) and 121.15 (4); and to create 121.004 (7) (f) and (g), 121.05 (1) (e) and 121.15 (1m) (a) 4. of the statutes; relating to: eliminating the school levy tax credit, and guaranteed aid for primary costs and weighting children at risk for equalization aid purposes.

Analysis by the Legislative Reference Bureau

The state school aid formula is designed to equalize school district tax bases and thus minimize the differences among the abilities of school districts to raise revenue for educational programs. The formula establishes three guaranteed tax bases, known as guaranteed valuations, that apply to three different levels of expenditure. The primary guaranteed valuation applies to those costs that do not exceed the primary ceiling cost per pupil of $1,000. The secondary guaranteed valuation applies to per pupil costs that exceed the primary ceiling. The tertiary guaranteed valuation applies to per pupil costs that exceed the secondary ceiling, which, in the 1998-99 school year, is $6,285 per pupil. The percentage of a school district's state-aided costs at each level of expenditure is equal to the net guaranteed valuation (the difference between the applicable guaranteed valuation and the equalized value of taxable property in the school district) divided by the applicable guaranteed valuation. Under the school aid formula, the aid generated at the primary level is reduced by aid generated at the secondary and tertiary levels but each school district is guaranteed aid for its primary costs.

School aid is computed using school district membership, which is the sum of the average of pupils enrolled in the third Friday in September and the second Friday in January of the previous school year and the number of full-time equivalent pupils enrolled in summer school in the previous summer. With some exceptions, each pupil is counted as 1.0 member.

This bill eliminates the guarantee of aid for primary costs for a school district whose secondary or tertiary equalized valuation exceeds its secondary or tertiary guaranteed valuation. The bill also counts children at risk (pupils in grades five to twelve who are academically lagging and are also dropouts, habitual truants, parents or adjudicated delinquents) as 1.2 members.

School districts, with some exceptions, receive 15% of the total school aid entitlement in September, 25% in December, 25% in March and 35% in June. One exception to this distribution schedule directs the state to distribute $75,000,000 of aid for the current school year on the fourth Monday of July of the following school year. This bill directs the state to make an additional delayed school aid payment of $469,305,000 for the current school year on the fourth Monday of July of the following school year.

Under current law, the school levy tax credit is distributed to municipalities based on each municipality's share of statewide levies for school purposes during the three preceding school years. Each individual taxpayer in a municipality shares in the school levy tax credit paid to the municipality based on the taxpayer's share of the municipality's total assessed value. This bill eliminates the school levy tax credit.

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:

SB312, s. 1 Section 1. 13.101 (6) (a) of the statutes is amended to read:

SB312,3,15 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, the university of Wisconsin system or to any other state agency or activity by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (cg), (cr) and (q), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq) and (ar), 20.435 (6) (a) and (7) (da) and 20.445 (3) (a) and (dz) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

SB312, s. 2 Section 2. 20.255 (2) (bc) of the statutes, as affected by 1999 Wisconsin Act 9, is repealed.

SB312, s. 3 Section 3. 20.835 (3) (b) of the statutes is repealed.

SB312, s. 4 Section 4. 41.41 (10) (b) of the statutes is amended to read:

SB312,3,24 41.41 (10) (b) Each year, the department shall ascertain from the clerk of each taxation district in which the reserve or any land acquired by the board is located the aggregate gross general property tax rate for the taxation district, exclusive of the rate that applies under s. 70.58 and without respect to the school levy tax credit under s. 79.10.

SB312, s. 5 Section 5. 41.41 (10) (c) 1. of the statutes is amended to read:

SB312,4,9 41.41 (10) (c) 1. Except as provided in par. (d), on or before each January 31, the department shall pay to the treasurer of each taxation district specified in par. (b), with respect to all land in the Kickapoo valley reserve and all land acquired by the board on or before January 1 of the preceding year, an amount determined by multiplying the estimated value of the land equated to the average level of assessment in the taxation district by the aggregate gross general property tax rate, exclusive of the rate that applies under s. 70.58 and without respect to the school levy tax credit under s. 79.10, that would apply to the land in that taxation district for that year if it were taxable.

SB312, s. 6 Section 6. 74.09 (3) (b) 3. of the statutes is amended to read:

SB312,4,14 74.09 (3) (b) 3. The tax levied on the property by the school district where the property is located minus the credit under s. 79.10 (4) allocable to the property, for the previous year and the current year, and the percentage change in that net tax between those years.

SB312, s. 7 Section 7. 79.10 (4) of the statutes is repealed.

SB312, s. 8 Section 8. 79.10 (6m) of the statutes is amended to read:

SB312,5,5 79.10 (6m) Corrections of state property tax credit payments. If the department of administration or the department of revenue determines by October 1 of the year of any distribution under subs. (4) and sub. (5) that there was an overpayment or underpayment made in that year's distribution by the department of administration to municipalities, as determined under subs. (4) and sub. (5), because of an error by the department of administration, the department of revenue or any municipality, the overpayment or underpayment shall be corrected as provided in this subsection. Any overpayment shall be corrected by reducing the subsequent year's distribution, as determined under subs. (4) and sub. (5), by an amount equal to the amount of the overpayment. Any underpayment shall be corrected by increasing the subsequent year's distribution, as determined under subs. (4) and sub. (5), by an amount equal to the amount of the underpayment. Corrections shall be made in the distributions to all municipalities affected by the error. Corrections shall be without interest.

SB312, s. 9 Section 9. 79.10 (7m) (a) 1. of the statutes is repealed.

SB312, s. 10 Section 10. 79.10 (7m) (a) 2. of the statutes is renumbered 79.10 (7m) (a).

SB312, s. 11 Section 11. 79.14 of the statutes is repealed.

SB312, s. 12 Section 12. 118.153 (2) (a) of the statutes is renumbered 118.153 (2).

SB312, s. 13 Section 13. 118.153 (2) (b) of the statutes is repealed.

SB312, s. 14 Section 14. 118.153 (3) (a) (intro.) and 1. of the statutes are repealed.

SB312, s. 15 Section 15. 118.153 (3) (a) 2. of the statutes is renumbered 118.153 (3) (a) and amended to read:

SB312,5,24 118.153 (3) (a) Upon Every school board that has identified children at risk under sub. (2) shall make available for these children a program for children at risk and, at the request of a pupil who is a child at risk or the pupil's parent or guardian, a school board described under subd. 1. shall enroll the pupil in the program for children at risk. If the school board makes available more than one program for children at risk, the school board shall enroll the pupil in the program selected by the pupil's parent or guardian if the pupil meets the prerequisites for that program. If there is no space in that program for the pupil, the school board of the school district operating under ch. 119 shall place the pupil's name on a waiting list for that program and offer the pupil an alternative program for children at risk until space in the requested program becomes available.

SB312, s. 16 Section 16. 118.153 (4) and (5) of the statutes are repealed.

SB312, s. 17 Section 17. 118.153 (6) of the statutes is amended to read:

SB312,6,3 118.153 (6) Biennially, the legislative audit bureau shall audit school district eligibility, performance criteria and state aid payments under this section.

SB312, s. 18 Section 18. 118.153 (7) of the statutes is amended to read:

SB312,6,8 118.153 (7) The state superintendent shall promulgate rules to implement and administer this section. The rules shall not be overly restrictive in defining approved programs and shall not serve to exclude programs that have demonstrated success in meeting the needs of children at risk.

SB312, s. 19 Section 19. 121.004 (7) (a) of the statutes is amended to read:

SB312,6,14 121.004 (7) (a) "Pupils enrolled" is the total number of pupils, as expressed by official enrollments, in all schools of the school district, except as provided in pars. (b) to (e) (g). If such total contains a fraction, it shall be expressed as the nearest whole number. The same method shall be used in computing the number of pupils enrolled for resident pupils, nonresident pupils or both.

SB312, s. 20 Section 20. 121.004 (7) (f) and (g) of the statutes are created to read:

SB312,6,20 121.004 (7) (f) A pupil who is eligible for a free or reduced-price lunch under 42 USC 1758 (b) shall be counted as 1.2 pupils, except that a pupil who is also enrolled in a kindergarten program or a preschool program under subch. V of ch. 115 shall be multiplied under this paragraph by a number equal to the result obtained by multiplying 1.2 by the appropriate fraction under par. (c), (cm) or (d).

SB312,6,22 (g) A pupil who is a child at risk, as defined under s. 118.153 (1) (a), shall be counted as 1.2 pupils.

SB312, s. 21 Section 21. 121.007 of the statutes is amended to read:

SB312,7,4 121.007 Use of state aid; exemption from execution. All moneys paid to a school district under s. 20.255 (2) (ac), (bc), (cg), (cr) and (q) shall be used by the school district solely for the purposes for which paid. Such moneys are exempt from execution, attachment, garnishment or other process in favor of creditors, except as to claims for salaries or wages of teachers and other school employes and as to claims for school materials, supplies, fuel and current repairs.

SB312, s. 22 Section 22. 121.05 (1) (e) of the statutes is created to read:

SB312,7,7 121.05 (1) (e) The use to which additional aid for pupils counted as 1.2 pupils under s. 121.004 (7) (f) and (g) was put in the previous school year.

SB312, s. 23 Section 23. 121.07 (7) (b) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB312,7,16 121.07 (7) (b) The "secondary guaranteed valuation per member" is an amount, rounded to the next lower dollar, that, after subtraction of payments under ss. 121.09 and 121.85 (6) (b) 2. and 3. and (c), fully distributes an amount equal to the amount remaining in the appropriation under s. 20.255 (2) (ac) plus $75,000,000 in the 1997-98 school year and, $100,000,000 in the 1998-99 school year and $469,305,000 in the 2000-01 school year for payments under ss. 121.08, 121.105, 121.85 (6) (a) and (g) and 121.86.

SB312, s. 24 Section 24. 121.08 (2) of the statutes is amended to read:

SB312,7,23 121.08 (2) The aid computed under sub. (1) shall be reduced by the sum of the amount by which the school district equalized valuation exceeds the secondary guaranteed valuation, multiplied by the secondary required levy rate, and the amount by which the school district equalized valuation exceeds the tertiary guaranteed valuation, multiplied by the tertiary required levy rate. In no case may the aid under this section be less than the amount under sub. (1) (a) zero.

SB312, s. 25 Section 25. 121.15 (1m) (a) 4. of the statutes is created to read:

SB312,8,3 121.15 (1m) (a) 4. Beginning in the 2000-01 school year, annually the state shall pay to school districts, from the appropriation under s. 20.255 (2) (ac), $469,305,000 on the 4th Monday in July of the following school year.

SB312, s. 26 Section 26. 121.15 (3m) (b) of the statutes is amended to read:

SB312,8,10 121.15 (3m) (b) By May 15, 1999, and annually by May 15 thereafter, the department, the department of administration and the legislative fiscal bureau shall jointly certify to the joint committee on finance an estimate of the amount necessary to appropriate under s. 20.255 (2) (ac) in the following school year to ensure that the sum of state school aids and the school levy tax credit under s. 79.10 (4) equals two-thirds of partial school revenues.

SB312, s. 27 Section 27. 121.15 (4) of the statutes is amended to read:

SB312,8,21 121.15 (4) On July 1 and October 15, using the most accurate data available, the state superintendent shall provide the department of revenue and each school district with an estimate of the total amount of state aid, as defined in s. 121.90 (2), the school district will receive in the current school year, including a separate estimate of the additional aid that each school district will receive for pupils counted under s. 121.004 (7) (f) and (g). On October 15, using the most accurate data available, the state superintendent shall calculate the total amount of state aid, as defined in s. 121.90 (2), that each school district will receive in the current school year. Any adjustments to that calculation shall be made by increasing or decreasing the payment made in September of the following school year.

SB312, s. 28 Section 28. Initial applicability.

SB312,8,23 (1) This act first applies to the distribution of school aid in the 2000-01 year.

SB312,8,24 (End)