This bill provides that the individualized education program team, appointed
by a local educational agency or LEA (a school district, CESA, county, or Milwaukee

charter school operator) to evaluate a child to determine whether the child is disabled
and to develop an individualized education program for a child with a disability, is
not responsible for determining the appropriate special education placement for the
child. Under the bill, the LEA is responsible for determining the child's placement.
The bill directs DPI to ensure, to the extent practicable, that all rules
promulgated by DPI that relate to special education are identical to federal
regulations that relate to special education.
Current law generally limits the increase in the total amount of revenue per
pupil that a school district may receive from general school aids and property taxes
in a school year to the amount of revenue increase allowed per pupil in the previous
school year increased by the percentage change in the consumer price index. Several
exceptions to this revenue limit exist, including an exception for a school district with
a per pupil base revenue for the previous school year that is less than the statutorily
prescribed revenue ceiling of $6,500 per pupil. Such a school district is allowed to
increase its per pupil revenue up to this ceiling without holding a referendum.
This bill eliminates the inflation adjustment beginning in the 2001-02 school
year and sets the amount at $220.29 per pupil for the 2001-02 school year and for
each subsequent school year. The bill also changes the revenue ceiling to $6,700 per
pupil for the 2001-02 school year and to $6,900 per pupil in subsequent school years.
Under current law, if a school district exceeds its revenue limit, DPI must
deduct from the district's state aid payments an amount equal to the excess revenue.
If the amount is insufficient to cover the excess revenue, the statutes direct DPI to
order the school board to reduce the property tax obligations of its taxpayers by an
amount that represents the remainder of the excess revenue.
This bill provides that DPI's order to reduce the property tax obligations of a
school district's taxpayers does not apply to property taxes levied for the purpose of
paying the principal and interest on debt validly issued by the school board. Under
article XI, section 3 (3), of the Wisconsin Constitution, when a school district borrows
money it must levy an irrepealable tax sufficient to pay the principal of and interest
on the debt.
Under current law, if a school district's revenue is less than its revenue limit,
it may carry over 75% of its unused revenue-limit authority to the next school year.
In addition, each fall DPI calculates the total amount of state aid that each school
district will receive in the current school year and makes any necessary adjustments
to that calculation by increasing or decreasing state aid paid in the following
September.
This bill provides that a school district whose aid is increased by DPI in
September of the following school year and whose aid increase is less than its unused
revenue-limit authority may carry over as unused revenue-limit authority an
amount equal to the amount of the additional September aid plus an amount
calculated by determining its unused revenue-limit authority and multiplying the

difference between the remainder and the amount of additional September aid by
0.75. If the school district's increase in aid is equal to or greater than its unused
revenue-limit authority, the bill provides that the school district may carry over
100% of its unused revenue-limit authority.
Under current law, 40% of a school district's summer enrollment is included in
its enrollment count when the school district's revenue limit is calculated. This bill
reduces this percentage to 25% by the 2003-04 school year.
Currently, the general school aid formula provides three tiers of state support
for the public schools. The second tier of support is for costs per student between
$1,000 and the secondary cost ceiling. Currently, the secondary cost ceiling per pupil
is the prior year's secondary cost ceiling per pupil adjusted by the rate of inflation.
This bill sets the secondary cost ceiling per pupil at $6,900 in the 2001-02 school year
and $7,300 in the 2002-03 school year. Thereafter, the secondary cost ceiling per
pupil is the prior year's cost ceiling adjusted for inflation.
Current law guarantees that a school district will receive in "special
adjustment aid" sufficient funds to ensure that it receives at least 85% of its prior
year's payment of general school aid. In addition, each fall DPI calculates the total
amount of state aid that each school district will receive in the current school year
and makes any necessary adjustments to that calculation by increasing or
decreasing state aid paid in the following September. This bill provides that DPI may
not consider the amount of this adjustment of state aid in calculating special
adjustment aid.
Under current law, referenda are required or authorized to be held by school
districts to incur debt or exceed state revenue limits, or to exceed the levy rate limit
for a school construction fund that is applicable only to the Milwaukee Public Schools
(MPS). These referenda are required or authorized to be held at special elections
when no offices appear on the ballot. This bill provides that the referenda must be
held concurrently with the spring election (held in each year) or the general election
(held in each even-numbered year), or on the Tuesday after the first Monday in
November in an odd-numbered year.
Under current law, a public school may not begin the school term until
September 1 unless it holds a public hearing on the issue and adopts a resolution.
The hearing must be held no earlier than the preceding July 1. Beginning in the
2002-03 school year, this bill allows the hearing to be held as early as the preceding
May 1. The bill also prohibits classes from being held on August 30, 2001, and August
31, 2002.
Under current law, a school district is required to bargain collectively in good
faith with the majority representative of its employees in a collective bargaining unit
concerning the wages, hours, and conditions of employment of the employees.
Among the subjects that are mandatory subjects of collective bargaining is any

school calendaring proposal that is primarily related to wages, hours, and conditions
of employment. This bill provides that a school district may not bargain collectively
with respect to the establishment of the school calendar, but expressly requires that
a school district must bargain collectively with respect to the impact of any school
calendar decision on wages, hours, and conditions of employment.
Current law authorizes the MPS board to contract with any nonsectarian
private school located in the city to provide educational programs for pupils enrolled
in the school district (educational services statute). The MPS board may also close
any school that it determines is low in performance (school closing statute). If the
MPS board closes a school or reopens a school that has been closed, the
superintendent of schools may reassign the school's staff without regard to seniority
in service. In addition, the MPS board is prohibited from bargaining collectively with
respect to: 1) the board's decision to contract with a private nonsectarian school or
private nonsectarian agency in the city to provide educational programs to pupils,
or the impact of any such decision on the wages, hours, or conditions of employment
of the employees who perform those services; or 2) the reassignment of employees
who perform services for the board, with or without regard to seniority, as the result
of a decision of the board to close or reopen a school or to contract with an individual
to operate a charter school or to convert a school to a charter school, or the impact
of any such reassignment on the wages, hours, or conditions of employment of the
employees who perform those services (collective bargaining statute). This bill
extends the educational services, school closing, and collective bargaining statutes
to cover all school boards.
Current law allows two or more school districts to consolidate. On the effective
date of the consolidation, employees of the consolidating school districts become
employees of the new consolidated school district. This bill authorizes the school
district administrator of the new consolidated school district, for 60 days after the
effective date of the consolidation, to lay off or reassign school district employees
without regard to seniority in service. In addition, the bill provides that any such
layoff or reassignment of school district employees is a prohibited subject of collective
bargaining.
This bill directs DPI to award grants to up to six school boards on behalf of
schools that demonstrate improved academic performance and to promulgate rules
to implement the grant program that include, as performance criteria, dropout rates,
improvement in pupils' performance and in teachers' knowledge and skills,
graduation rates, and the number of teachers who have received national board
certification. DPI must ensure that the grants do not exceed $2,000 multiplied by
the number of employees in all schools in the school district that meet the
performance criteria contained in DPI's rules.
Under current law, a school district may not provide to its professional
employees who are not in collective bargaining units an average increase in
compensation and fringe benefits that has an average cost per employee exceeding

3.8% of the average total cost per employee of compensation and fringe benefits
provided by the school district to such employees for the preceding 12-month period
ending on June 30 or the average total percentage increased cost per employee of
compensation and fringe benefits provided to its professional employees who are in
collective bargaining units during the 12-month period ending on June 30 preceding
the date that the increase becomes effective, whichever is greater. This bill provides
that any compensation received by professional employees who are not in collective
bargaining units from school performance grants is not subject to this limitation on
compensation and fringe benefit costs.
Current law exempts computers from property taxation. This bill provides that
the amounts received by school districts to compensate them for the reduction in
their tax base due to the property tax exemption for computers is included in their
shared cost for the purpose of computing general aid.
This bill directs DPI to award grants to CESAs to fund the development, for
school districts, of education services that are unrelated to instruction. The bill also
directs DPI to award grants to two or more school districts that are considering
consolidating or coordinating the provision of educational services for the purpose of
studying the feasibility of the consolidation or coordination.
Currently, under the Open Enrollment Program, a pupil may attend any public
school located outside his or her school district of residence if the pupil's parent
complies with certain application procedures. A school board may, however, deny an
open enrollment application if the school district does not have enough space for the
pupil. In determining the availability of space, a school board may consider class size
limits, pupil-teacher ratios, nonresident pupils whose school district of residence
pays tuition to the nonresident school district, and enrollment projections. If the
school board receives more open enrollment applications than it has spaces, the
school board must select pupils randomly. A school board must also give preference
in accepting open enrollment applications to pupils already attending school
(continuing pupils) and their siblings.
In McMorrow v. State Superintendent of Public Instruction, John T. Benson, No.
99-1288 (July 25, 2000), the Wisconsin Court of Appeals held that the requirement
that a school board give preference in accepting open enrollment applications to
continuing pupils and their siblings applies only when there are spaces available in
the first place; when there are more applicants than available spaces, the pupils
accepted must be determined randomly. The court also held that a school board may
not include continuing pupils in its space determination. This bill permits a school
board to adopt policies that include continuing pupils and their siblings in space
determinations and allows a school board to give preference in accepting the open
enrollment applications of continuing pupils and their siblings, even if the school
board determines that it does not have space for the pupils.

In administering the open enrollment program, DPI annually adjusts each
school district's share of state aid depending upon whether the district has more or
fewer nonresidents attending the district than it has residents attending other
districts. The per pupil adjustment is based upon the statewide average per pupil
cost for regular instruction, cocurricular activities, instructional support services,
and pupil support services. This bill bases the adjustment on two-thirds of the total
statewide average per pupil cost.
Currently, with certain exceptions, if a pupil attends a public school outside the
school district in which the pupil resides, the pupil's parent or guardian pays tuition.
Tuition is currently the statewide average per pupil cost for regular instruction,
cocurricular activities, instructional support services, and pupil support services.
Under this bill, beginning in the 2002-03 school year, tuition is two-thirds of the
total statewide average per pupil cost.
This bill creates an 11-member committee, appointed by the governor, to
review and make recommendations for modifying DPI's administrative rules. The
committee must identify those rules that are outmoded, impede innovation, cause
inefficiencies, or fail to promote academic achievement, and those rules that should
not apply to school districts that are granted extended flexibility status. DPI must
review the committee's recommendations and propose modifications to its rules
based on those recommendations.
This bill directs DPI to submit to the governor and to DOA a plan for the
reorganization of the division for learning support and instructional services in DPI.
The plan must provide for the creation of a bureau for school improvement to provide
on-site, technical assistance to schools and school districts, especially schools and
school districts that are low in performance. If the plan is approved by the governor,
the bureau must consist of school performance teams, each of which must include one
licensed teacher employed by a school district and assigned to DPI under an
interagency exchange agreement.
This bill prohibits DPI from promulgating a rule that relates to distance
education without the approval of the secretary of administration, the technical
college system board, and the technology for educational achievement in Wisconsin
board.
This bill directs DPI to distribute to school districts the maximum amount of
federal aid that is allowed under federal law, except for those funds provided for
administrative purposes.
This bill directs DPI to ensure that the vocational education consultants
employed by DPI coordinate their activities with the staff of the governor's
work-based learning board.

Currently, the state pays public school tuition for any pupil in a foster home,
treatment foster home, or group home if the home is located outside the school
district in which the pupil's parent or guardian resides and the home is exempt from
property taxation. Under this bill, the state also pays public school tuition for any
pupil who resides in a foster home, treatment foster home, or group home if the home
is located outside the school district in which the pupil's parent or guardian resides
and the pupil receives special education, even if the home is subject to property
taxation, if at least 4% of the school district's enrollment resides in such homes that
are subject to property taxation.
Under current law, towns, villages, cities, counties, public inland protection
and rehabilitation districts, town sanitary districts, metropolitan sewerage districts,
joint sewerage systems, school districts, technical college districts, cooperative
educational service agencies, and consortia of two or more school districts, technical
college districts, counties, cities, villages, or towns may obtain state trust fund loans
from the board of commissioners of public lands. Currently, a federated public
library system whose territory lies within one county is considered to be an agency
of that county and, therefore, may obtain a state trust fund loan through the county.
This bill permits a federated public library system whose territory lies within two or
more counties, which is a separate legal entity from the counties participating in that
system, to obtain a state trust fund loan.
This bill requires DPI to charge school districts a fee for the use of BadgerLink,
which provides statewide access, through the Internet, to periodical and reference
information databases.
Higher education
Current law prohibits the UW board of regents (board) from increasing
resident, undergraduate tuition beyond an amount that is sufficient to fund certain
costs, such as compensation and fringe benefits for UW employees and the costs of
nontraditional courses, but permits the board to spend the entire amount of tuition
received. Beginning in the 2002-03 academic year, this bill eliminates the
restrictions on increasing resident undergraduate tuition.
Under current law, the board may not create or abolish any position funded
with general purpose revenues (GPR) without legislative approval. This bill permits
the board to create or abolish faculty and academic staff GPR-funded positions
without legislative approval if it submits a request to DOA containing a clear
explanation of how the board will fill the requested position and if DOA approves the
request.
Under current law, the board may create or abolish certain positions funded
with program revenue without legislative approval if it reports the number of
positions created or abolished and the funding source to DOA and JCF. This bill
allows the board to create positions funded from program revenue generated from

courses for which nonresident and resident students pay the same tuition and for
which the tuition charged equals 100% of the cost of offering the course. The bill also
imposes the same reporting requirement for these new positions.
Under current law, the board may, until the 2000-01 academic year, exempt
from the payment of nonresident tuition a certain number of students enrolled at
UW-Parkside and UW-Superior. This bill allows the UW board to continue to
exempt these pupils after the 2000-01 academic year.
Current law requires the board to make all reasonable efforts to provide night
courses. This bill instead requires the board to ensure that at least 15% of all UW
System course sections that are offered for credit and that do not exclude
undergraduate students are offered during the evenings and weekends or by
electronic means.
Under current law, the board must remit resident, undergraduate tuition for
children or spouses of certain persons, such as police officers, who are killed in the
line of duty. This bill directs the board to remit the resident, undergraduate tuition
of the winner of the Wisconsin state science fair for up to five consecutive years. A
winner who receives the fee remission, remains in good academic standing, and
completes a bachelor's degree receives a two-year fee remission for a science-related
graduate program.
Currently, the technical college system (TCS) board must approve the
qualifications of educational personnel and the courses of study for each program
offered in the district schools. This bill allows a district board to employ an instructor
who is not certified by the TCS board if the instructor holds a valid industry
certification recognized by the TCS board.
Current law prohibits the TCS board from considering any course of study for
approval if the course has not first been approved by the district board. This bill
eliminates this prohibition. The bill also requires the district board to offer any
program or course of study that the TCS board directs the district board to offer, and
to eliminate any program or course of study that the TCS board directs the board to
eliminate.
Currently, a district board must hold a referendum if it intends to make a
capital expenditure that exceeds $500,000. Under certain conditions, that
requirement does not apply to a capital expenditure to purchase or construct an
applied technology center. One of the conditions is that the expenditure be made
before January 1, 2002. This bill extends that date to July 1, 2003.
The TCS board currently awards incentive grants to district boards for a variety
of purposes. This bill authorizes the TCS board to award a grant to a district board
to assist in the statewide marketing and promotion of the TCS. The bill also prohibits
the TCS board from awarding any incentive grant to a district board without first
reviewing and approving the district board's budget.

This bill directs the governor to appoint a committee to study the feasibility of
consolidating the UW System two-year colleges and the TCS and to report its
findings to DOA by January 1, 2002.
This bill directs the TCS board to establish a system that allows a student
enrolled in one technical college to enroll in a course offered over the Internet by
another technical college without paying additional fees to the technical college
offering the course. The bill also directs the TCS board to assist technical colleges
to develop Internet courses and to establish an Internet site that provides
information on all such courses.
Under current law, the College Tuition and Expenses Program (popularly
known as "EdVest") allows a person to purchase "tuition units" that can later be used
to pay college tuition, room, board, and related expenses on behalf of the purchaser,
the purchaser's child or legal guardian, or, if the purchaser is a trust, the beneficiary
of the trust. The College Savings Program, designed to complement EdVest, allows
a person, including a charitable organization, to make contributions to a college
savings account to pay the college expenses of a named beneficiary or an unnamed,
future recipient of a scholarship account established by the charitable organization.
EdVest is administered by the state treasurer, while the College Savings
Program is administered by the college savings board (board), which must contract
with a private vendor for the investment of the contributions to the college savings
accounts. Both a college tuition and expenses or college savings account must be
closed if the funds in the account are not used within ten years of the original
projected date of the beneficiary's or recipient's enrollment.
This bill allows a person to purchase tuition units on behalf of any named
beneficiary, allows a charitable organization to open an EdVest scholarship account
for an unnamed, future recipient, and permits, but does not require, the state
treasurer or the board to close a college tuition and expenses or college savings
account if the account's funds are not used within ten years of the original projected
date of the beneficiary's or recipient's enrollment. The bill also permits revenues
generated from EdVest or College Savings Program enrollment fees and fees paid by
the College Savings Program vendor to be used to defray the administrative costs of
either program.
Other educational and cultural agencies
Under current law, the educational communications board (ECB) is responsible
for overseeing the provision of public broadcasting in this state. In addition, the
board of regents of the UW System, as licensee, must manage, operate, and maintain
a radio and television station and provide the ECB part-time use of equipment and
space necessary for the operations of the state educational radio and television
networks.
This bill creates a public broadcasting transitional board (transitional board)
that is responsible for creating a nonstock, nonprofit educational broadcasting
corporation (corporation). The bill directs the transitional board to draft and file

articles of incorporation for a corporation and to take all actions necessary to exempt
the corporation from taxation under the Internal Revenue Code. In addition, the
transitional board must provide in the articles of incorporation that the members of
the transitional board are the initial directors of the corporate board. The
transitional board must prepare an application for the corporate board to submit to
the federal communications commission (FCC) to transfer all broadcasting licenses
held by the ECB and the board of regents to the corporation, except licenses held by
the board of regents for student radio; negotiate an agreement with the Wisconsin
Public Radio Association to transfer funds raised by the Wisconsin Public Radio
Association to the corporation; and negotiate an agreement with each friends group
to transfer funds raised by the friends group to the corporation.
If the FCC approves the transfer of all broadcasting licenses held by the ECB
to the corporation, the ECB is eliminated on the effective date of the transfer. If the
FCC approves the transfer of all broadcasting licenses held by the board of regents
to the corporation, the corporation assumes the broadcasting activities of the board
of regents.
The corporation is entitled to receive state aid for its operational expenses if the
corporation, generally, maintains a state system of radio broadcasting for presenting
educational, informational, and public service programs; maintains television
channels for educational use; and enters into a contract with the board of regents for
the services of the employees of the board of regents related to providing public
broadcasting services.
If the FCC approves the transfer of all broadcasting licenses held by the ECB
to the corporation, ECB employees become DOA employees and those employees will
provide broadcasting services to the corporation under a contract between DOA and
the corporation.
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