LRBs0009/2
MES&PG:kjf:pg
2005 - 2006 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2005 SENATE BILL 28
January 27, 2005 - Offered by Senators Kanavas and S. Fitzgerald.
SB28-SSA1,1,4
1An Act to amend 121.91 (2m) (e) (intro.), 121.91 (2m) (r) 1. (intro.), 121.91 (2m)
2(r) 2. (intro.) and 121.91 (4) (f); and
to create 38.17, 66.0602, 121.91 (2m) (f) and
3121.91 (2m) (g) of the statutes;
relating to: school district revenue limits and
4levy limits for cities, villages, towns, counties, and technical college districts.
Analysis by the Legislative Reference Bureau
This substitute amendment creates local levy limits that apply to cities,
villages, towns, counties (political subdivisions), and technical college districts.
Generally, the substitute amendment prohibits a political subdivision from
increasing its levy by a percentage that exceeds the percentage change in the political
subdivision's equalized value due to new construction, less improvements removed.
In addition, the calculation of a city's, village's, or town's levy does not include any
tax increment that is generated by a tax incremental district. With regard to
technical college districts, the levy limit is the levy for the previous year multiplied
by 1.026. The substitute amendment contains exceptions to the levy limit for
political subdivisions that transfer the provision of services, for cities or villages that
annex town territory, and for a county levy that relates to a county Children with
Disabilities Education Board. The levy limit may also be exceeded if a political
subdivision's or technical college district's resolution to do so is approved in a
referendum. A town with a population of less than 2,000 may exceed the levy limit
if a resolution to do so is approved by an annual or special town meeting. The levy
limits do not apply beginning three years after the effective date of the substitute
amendment.
Under the substitute amendment, a technical college district's or political
subdivision's levy limit is increased if the amount of debt service in the current year
exceeds the amount in the prior year for debt that was approved by the governing
body before July 1, 2005. This substitute amendment exempts from the limit all
funds needed to pay debt service on debt authorized by resolution or referendum
before July 1, 2005, and on debt authorized by referendum on or after July 1, 2005.
Also under this substitute amendment, the limit otherwise applicable does not
apply to the amount that a 1st class city (presently only Milwaukee) levies for school
purposes. Currently, a 1st class city school district is not authorized to levy a tax; the
city in which the school district is located levies a tax for school purposes at the
direction of the school board.
This substitute amendment sets the per pupil adjustment under school district
revenue limits at $210 in the 2005-06 school year and at $200 in each subsequent
school year. Under current law, the per pupil adjustment is approximately $241 in
the 2004-05 school year and is adjusted for inflation in subsequent school years.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB28-SSA1,2,5
238.17 Levy limit. (1)
Definition. In this section, "debt service" includes debt
3service on debt issued or reissued to fund or refund outstanding municipal
4obligations, interest on outstanding municipal obligations, and related issuance
5costs and redemption premiums.
SB28-SSA1,2,8
6(2) Limit. Except as provided in subs. (3) and (4), no district board may increase
7its levy for any fiscal year to an amount that exceeds its levy for the previous fiscal
8year multiplied by 1.026.
SB28-SSA1,2,13
9(3) Adjustments. (a) 1. If a district board transfers to another governmental
10unit responsibility for providing any service that it provided in the preceding fiscal
11year, the limit otherwise applicable under sub. (2) in the current fiscal year is
12decreased by the cost that it would have incurred to provide that service, as
13determined by the department of revenue.
SB28-SSA1,3,5
12. If a district board increases the services that it provides by adding
2responsibility for providing a service transferred to it from another governmental
3unit that provided the service in the previous fiscal year, the limit otherwise
4applicable under sub. (2) in the current fiscal year is increased by the cost of that
5service, as determined by the department of revenue.
SB28-SSA1,3,116
(b) 1. If the amount of debt service for a district board in the preceding fiscal
7year is less than the amount of debt service needed in the current fiscal year, as a
8result of the district board adopting a resolution before July 1, 2005, authorizing the
9issuance of debt, the limit otherwise applicable under sub. (2) for the current fiscal
10year is increased by the difference between the 2 amounts, as determined by the
11department of revenue.
SB28-SSA1,3,1712
2. The limit otherwise applicable under this section does not apply to amounts
13levied by a district board for the payment of any general obligation debt service,
14including debt service on debt issued or reissued to fund or refund outstanding
15municipal obligations, interest on outstanding municipal obligations, or the
16payment of related issuance costs or redemption premiums, authorized on or after
17July 1, 2005, by a referendum and secured by the full faith and credit of the district.
SB28-SSA1,3,23
18(4) Referendum. (a) 1. A district board may exceed the levy limit under sub.
19(2) if it adopts a resolution to that effect and the resolution is approved in a
20referendum. The resolution shall specify the proposed amount of increase in the levy
21beyond the amount that is allowed under sub. (2), and shall also specify whether the
22proposed amount of increase is for the next fiscal year only or if it will apply on an
23ongoing basis.
SB28-SSA1,4,3
12. Except as provided in subd. 3., the district board may call a special
2referendum for the purpose of submitting the resolution to the electors of the district
3for approval or rejection.
SB28-SSA1,4,64
3. A referendum to exceed the limit under sub. (2) for the levy for the 2006-07
5fiscal year shall be held at the spring primary or election or September primary or
6general election in 2006.
SB28-SSA1,4,97
(b) The district board shall publish type A, B, C, D, and E notices of the
8referendum under s. 10.01 (2). Section 5.01 (1) applies in the event of failure to
9comply with the notice requirements of this paragraph.
SB28-SSA1,4,1810
(c) The referendum shall be held in accordance with chs. 5 to 12. The district
11board shall provide the election officials with all necessary election supplies. The
12form of the ballot shall correspond substantially with the standard form for
13referendum ballots prescribed by the elections board under ss. 5.64 (2) and 7.08 (1)
14(a). The question shall be submitted as follows: "Under state law, the percentage
15increase in the levy of the .... (name of district) for the next fiscal year, .... (year), is
16limited to ....%, resulting in a levy of $..... Shall the .... (name of district) be allowed
17to exceed this limit such that the percentage increase for the next fiscal year, ....
18(year), will be ....%, resulting in a levy of $....?".
SB28-SSA1,4,2419
(d) Within 14 days after the referendum, the district board shall certify the
20results of the referendum to the department of revenue. The limit otherwise
21applicable to the district under sub. (2) is increased for the next fiscal year by the
22amount approved by a majority of those voting on the question. If the resolution
23specifies that the increase is for one year only, the amount of the increase shall be
24subtracted from the base used to calculate the limit for the 2nd succeeding fiscal year.
SB28-SSA1,5,2
1(5) Sunset. This section does not apply beginning 3 years after the effective
2date of this subsection .... [revisor inserts date].
SB28-SSA1,5,4
466.0602 Local levy limits. (1) Definitions. In this section:
SB28-SSA1,5,85
(a) "Debt service" includes debt service on debt issued or reissued to fund or
6refund outstanding municipal or county obligations, interest on outstanding
7municipal or county obligations, and related issuance costs and redemption
8premiums.
SB28-SSA1,5,99
(b) "Political subdivision" means a city, village, town, or county.
SB28-SSA1,5,1310
(c) "Valuation factor" means a percentage equal to the percentage change in the
11political subdivision's January 1 equalized value due to new construction less
12improvements removed between the previous year and the current year, but not less
13than zero.
SB28-SSA1,5,18
14(2) Levy limit. Except as provided in subs. (3), (4), and (5), no political
15subdivision may increase its levy in any year by a percentage that exceeds the
16political subdivision's valuation factor. In determining its levy in any year, a city,
17village, or town shall subtract any tax increment that is calculated under s. 60.85 (1)
18(L) or 66.1105 (2) (i).
SB28-SSA1,5,24
19(3) Exceptions. (a) If a political subdivision transfers to another governmental
20unit responsibility for providing any service that the political subdivision provided
21in the preceding year, the levy increase limit otherwise applicable under this section
22to the political subdivision in the current year is decreased to reflect the cost that the
23political subdivision would have incurred to provide that service, as determined by
24the department of revenue.
SB28-SSA1,6,6
1(b) If a political subdivision increases the services that it provides by adding
2responsibility for providing a service transferred to it from another governmental
3unit that provided the service in the preceding year, the levy increase limit otherwise
4applicable under this section to the political subdivision in the current year is
5increased to reflect the cost of that service, as determined by the department of
6revenue.
SB28-SSA1,6,127
(c) If a city or village annexes territory from a town, the city's or village's levy
8increase limit otherwise applicable under this section is increased in the current year
9by an amount equal to the town levy on the annexed territory in the preceding year
10and the levy increase limit otherwise applicable under this section in the current
11year for the town from which the territory is annexed is decreased by that same
12amount, as determined by the department of revenue.
SB28-SSA1,6,1813
(d) 1. If the amount of debt service for a political subdivision in the preceding
14year is less than the amount of debt service needed in the current year, as a result
15of the political subdivision adopting a resolution before July 1, 2005, authorizing the
16issuance of debt, the levy increase limit otherwise applicable under this section to the
17political subdivision in the current year is increased by the difference between these
182 amounts, as determined by the department of revenue.
SB28-SSA1,6,2519
2. The limit otherwise applicable under this section does not apply to amounts
20levied by a political subdivision for the payment of any general obligation debt
21service, including debt service on debt issued or reissued to fund or refund
22outstanding obligations of the political subdivision, interest on outstanding
23obligations of the political subdivision, or the payment of related issuance costs or
24redemption premiums, authorized on or after July 1, 2005, by a referendum and
25secured by the full faith and credit of the political subdivision.
SB28-SSA1,7,3
1(e) The limit otherwise applicable under this section does not apply to the
2amount that a county levies in that year for a county children with disabilities
3education board.
SB28-SSA1,7,54
(f) The limit otherwise applicable under this section does not apply to the
5amount that a 1st class city levies for school purposes.
SB28-SSA1,7,16
6(4) Referendum exception. (a) A political subdivision may exceed the levy
7increase limit under sub. (2) if its governing body adopts a resolution to that effect
8and if the resolution is approved in a referendum. The resolution shall specify the
9proposed amount of increase in the levy beyond the amount that is allowed under
10sub. (2), and shall specify whether the proposed amount of increase is for the next
11fiscal year only or if it will apply on an ongoing basis. With regard to a referendum
12relating to the 2005 or 2007 levy, the political subdivision may call a special
13referendum for the purpose of submitting the resolution to the electors of the political
14subdivision for approval or rejection. With regard to a referendum relating to the
152006 levy, the referendum shall be held at the next succeeding spring primary or
16election or September primary or general election.
SB28-SSA1,7,1917
(b) The clerk of the political subdivision shall publish type A, B, C, D, and E
18notices of the referendum under s. 10.01 (2). Section 5.01 (1) applies in the event of
19failure to comply with the notice requirements of this paragraph.
SB28-SSA1,8,320
(c) The referendum shall be held in accordance with chs. 5 to 12. The political
21subdivision shall provide the election officials with all necessary election supplies.
22The form of the ballot shall correspond substantially with the standard form for
23referendum ballots prescribed by the elections board under ss. 5.64 (2) and 7.08 (1)
24(a). The question shall be submitted as follows: "Under state law, the increase in the
25levy of the .... (name of political subdivision) for the tax to be imposed for the next
1fiscal year, .... (year), is limited to ....%, which results in a levy of $.... Shall the ....
2(name of political subdivision) be allowed to exceed this limit and increase the levy
3for the next fiscal year, .... (year), by a total of ....%, which results in a levy of $....?".
SB28-SSA1,8,104
(d) Within 14 days after the referendum, the clerk of the political subdivision
5shall certify the results of the referendum to the department of revenue. The levy
6increase limit otherwise applicable to the political subdivision under sub. (2) is
7increased in the next fiscal year by the percentage approved by a majority of those
8voting on the question. If the resolution specifies that the increase is for one year
9only, the amount of the increase shall be subtracted from the base used to calculate
10the limit for the 2nd succeeding fiscal year.
SB28-SSA1,8,17
11(5) Exception, certain towns. A town with a population of less than 2,000 may
12exceed the levy increase limit otherwise applicable under this section to the town if
13the annual town meeting or a special town meeting adopts a resolution to that effect.
14The limit otherwise applicable to the town under sub. (2) is increased in the next
15fiscal year by the percentage approved by a majority of those voting on the question.
16Within 14 days after the adoption of the resolution, the town clerk shall certify the
17results of the vote to the department of revenue.
SB28-SSA1,8,19
18(6) Sunset. This section does not apply beginning 3 years after the effective
19date of this subsection .... [revisor inserts date].
SB28-SSA1, s. 3
20Section
3. 121.91 (2m) (e) (intro.) of the statutes is amended to read:
SB28-SSA1,8,2421
121.91
(2m) (e) (intro.) Except as provided in subs. (3) and (4), no school district
22may increase its revenues for the 1999-2000
, 2000-01, 2001-02, 2002-03, 2003-04,
23or 2004-05 school year
or for any school year thereafter to an amount that exceeds
24the amount calculated as follows:
SB28-SSA1, s. 4
25Section
4. 121.91 (2m) (f) of the statutes is created to read:
SB28-SSA1,9,3
1121.91
(2m) (f) Except as provided in subs. (3) and (4), no school district may
2increase its revenues for the 2005-06 school year to an amount that exceeds the
3amount calculated as follows:
SB28-SSA1,9,74
1. Divide the sum of the amount of state aid received in the previous school year
5and property taxes levied for the previous school year, excluding property taxes
6levied for the purpose of s. 120.13 (19) and excluding funds described under sub. (4)
7(c), by the average of the number of pupils enrolled in the 3 previous school years.
SB28-SSA1,9,88
2. Add $210 to the result under subd. 1.