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2011 - 2012 LEGISLATURE
April 13, 2011 - Introduced by Representatives Marklein, Kestell, Kooyenga,
Strachota, Farrow, Petersen, Spanbauer, Klenke, Ripp, August, Knilans,
Brooks, Tranel, Vos
and Stone, cosponsored by Senators Wanggaard,
Darling, Hopper, Lazich
and Zipperer. Referred to Committee on Education.
AB94,1,3 1An Act to amend 119.23 (3) (a), 119.23 (4) (b) (intro.), 119.23 (4) (c), 119.23 (4m),
2119.23 (7) (am) 1. and 2., 119.23 (10) (d) and 119.23 (11); and to create 119.23
3(4) (d) of the statutes; relating to: the Milwaukee Parental Choice Program.
Analysis by the Legislative Reference Bureau
This bill makes a number of changes to the Milwaukee Parental Choice
Program (MPCP), including the following:
1. Under current law, the Department of Public Instruction (DPI) pays a pupil's
cost of attending a private school participating in the MPCP by making the check out
to the pupil's parent but sending it to the private school. The pupil's parent must
endorse the check for the use of the school.
This bill directs DPI to make the payment directly to the private school on
behalf of the pupil's parent, and allows DPI to combine payments for all pupils
attending a private school under the MPCP into a single check. Payment for summer
school programs must be made in November and be by separate check.
2. The bill provides that if more than one pupil from the same family applies
to attend the same private school, the pupils may use a single application.
3. DPI's administrative rules provide that, in determining a private school's per
pupil operating and debt service cost for the purpose of determining the amount of
the state's payment to the private school, certain revenues, such as fees charged
pupils for books, are subtracted. This bill codifies this administrative rule, but
provides that the amount of each subtraction may not be more than the actual cost
to the school of the service or material related to that revenue.

The bill also allows a private school to include in its cost an amount equal to 10.5
percent of the fair market value of the private school's buildings and premises if legal
title to the private school's buildings and premises is held in the name of the private
school's parent organization or a related party. Once a private school chooses to
include this amount in its cost, it must be included in each subsequent school year.
4. Currently, each private school participating in the MPCP is subject to
uniform financial accounting standards established by DPI and annually must
submit to DPI an independent financial audit of the private school conducted by a
certified public accountant and provide evidence of sound fiscal practices. Each
private school must also provide to DPI evidence of the school's financial viability.
This bill requires that the private school's audit must be conducted using the
auditing standards established by the American Institute of Certified Public
Accountants (AICPA) and that the audit of the private school's fiscal and internal
control practices must be conducted in accordance with attestation standards
established by the AICPA.
5. Under current law, the state payment for each full-time equivalent (FTE)
summer school pupil is approximately 40 percent of the payment for each FTE
regular school year pupil. This bill eliminates this reduction.
For further information see the state 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:
AB94, s. 1 1Section 1. 119.23 (3) (a) of the statutes is amended to read:
AB94,3,22 119.23 (3) (a) The pupil or the pupil's parent or guardian shall submit an
3application, on a form provided by the state superintendent, to the participating
4private school that the pupil wishes to attend. If more than one pupil from the same
5family applies to attend the same private school, the pupils may use a single
6application.
Within 60 days after receiving the application, the private school shall
7notify the each applicant, in writing, whether the his or her application has been
8accepted. If the private school rejects an application, the notice shall include the
9reason. A private school may reject an applicant only if it has reached its maximum
10general capacity or seating capacity. The state superintendent shall ensure that the
11private school determines which pupils to accept on a random basis, except that the

1private school may give preference in accepting applications to siblings of pupils
2accepted on a random basis.
AB94, s. 2 3Section 2. 119.23 (4) (b) (intro.) of the statutes is amended to read:
AB94,3,94 119.23 (4) (b) (intro.) Except as provided in par. (bg), upon receipt from the
5pupil's parent or guardian of proof of the pupil's enrollment in the private school
6during a school term, the state superintendent shall pay to the parent or guardian
7private school in which the pupil is enrolled on behalf of the pupil's parent or
8guardian
, from the appropriation under s. 20.255 (2) (fu), an amount equal to the
9lesser of the following:
AB94, s. 3 10Section 3. 119.23 (4) (c) of the statutes is amended to read:
AB94,3,2011 119.23 (4) (c) The state superintendent shall pay 25% of the total amount under
12this subsection in September, 25% in November, 25% in February, and 25% in May.
13Each installment may consist of a single check for all pupils attending the private
14school under this section.
The state superintendent may shall include the entire
15amount under sub. (4m) in one of those installments or apportion the entire amount
16among one or more of those installments. Except as provided in sub. (4r), the
17department shall send the check to the private school. Except as provided in sub.
18(4r), the parent or guardian shall restrictively endorse the check for the use of the
19private school
the November installment, but the payment shall be made in a
20separate check from the payment under this subsection
.
AB94, s. 4 21Section 4. 119.23 (4) (d) of the statutes is created to read:
AB94,3,2322 119.23 (4) (d) In determining a private school's operating and debt service cost
23per pupil under par. (b) 1., the department shall do all of the following:
AB94,3,2524 1. Subtract only the following, up to the actual cost of the service or material
25related to each item:
AB94,4,1
1a. Fees charged pupils for books and supplies used in classes and programs.
AB94,4,22 b. Rentals for school buildings.
AB94,4,33 c. Food service revenues.
AB94,4,44 d. Governmental financial assistance.
AB94,4,55 e. Interest and other income resulting from the investment of debt proceeds.
AB94,4,126 2. If legal title to the private school's buildings and premises is held in the name
7of the private school's parent organization or other related party, there is no other
8mechanism to include the private school's facilities costs in the calculation of its
9operating and debt service cost, and the private school requests that the department
10do so, include an amount equal to 10.5 percent of the fair market value of the school
11and its premises. A request made by a private school under this subdivision remains
12effective in subsequent school years and may not be withdrawn by the private school.
AB94,4,1613 3. If immediately prior to the effective date of this subdivision .... [LRB inserts
14date], a private school's operating and debt service costs, as determined by the
15department, included the amount described in subd. 2., continue to include the
16amount described in subd. 2. in subsequent school years.
AB94, s. 5 17Section 5. 119.23 (4m) of the statutes is amended to read:
AB94,4,2518 119.23 (4m) In addition to the payment under sub. (4) the state superintendent
19shall pay to the parent or guardian of each pupil enrolled in a private school
20participating in the program under this section, on behalf of the parents or guardians
21of all pupils attending the private school under this section,
in the manner described
22in sub. (4) (c), an amount determined by multiplying 40% of the payment under sub.
23(4) by the quotient determined by dividing the summer choice average daily
24membership equivalent of the private school by the total number of pupils for whom
25payments are being made under sub. (4)
.
AB94, s. 6
1Section 6. 119.23 (7) (am) 1. and 2. of the statutes are amended to read:
AB94,5,122 119.23 (7) (am) 1. An independent financial audit of the private school
3conducted by an independent certified public accountant, accompanied by the
4auditor's statement that the report is free of material misstatements and fairly
5presents pupil costs under sub. (4) (b) 1. The audit under this subdivision shall be
6limited in scope to those records that are necessary for the department to make
7payments under subs. (4) and (4m). The auditor shall conduct his or her audit,
8including determining sample sizes and evaluating financial viability, in accordance
9with the auditing standards established by the American Institute of Certified
10Public Accountants. The department may not require an auditor to comply with
11standards that exceed the scope of the standards established by the American
12Institute of Certified Public Accountants.
AB94,5,1713 2. Evidence of sound fiscal and internal control practices, as prescribed by the
14department by rule. An auditor engaged to evaluate the private school's fiscal and
15internal control practices shall conduct his or her evaluation, including determining
16sample sizes, in accordance with attestation standards established by the American
17Institute of Certified Public Accountants.
AB94, s. 7 18Section 7. 119.23 (10) (d) of the statutes is amended to read:
AB94,5,2119 119.23 (10) (d) The state superintendent may withhold payment from a parent
20or guardian
private school under subs. (4) and (4m) if the private school attended by
21the child of the parent or guardian
violates this section.
AB94, s. 8 22Section 8. 119.23 (11) of the statutes is amended to read:
AB94,6,223 119.23 (11) The department shall promulgate rules to implement and
24administer this section. The department may not by rule establish standards under

1sub. (7) (am) that exceed the standards established by the American Institute of
2Certified Public Accountants.
AB94, s. 9 3Section 9. Initial applicability.
AB94,6,54 (1) This act first applies to applications to attend a private school and payments
5made to a private school in the 2012-13 school year.
AB94,6,66 (End)
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