118.60 (4) (bg) 5. (intro.) If the pupil described in subd. 3. is enrolled in a private school that enrolls pupils under the program in any grade between kindergarten to 8 and also in any grade between 9 to 12, the state superintendent shall substitute for the amount described in subd. 3. b. the amount determined under subd. 4. a. to d., with the following modifications:
55,3340 Section 3340. 118.60 (4) (d) of the statutes is repealed.
55,3340g Section 3340g. 118.60 (4d) of the statutes is created to read:
118.60 (4d) (a) In this subsection, "incoming choice pupil" means a pupil who resides in a school district, other than a 1st class city school district, who begins participating in the program under this section in the 2015-16 school year or any school year thereafter, and who is enrolled in a private school under this section.
(b) 1. Beginning in the 2015-16 school year, subject to s. 121.085 (1), the department shall decrease a school district's state aid payment under s. 121.08 by an amount calculated as follows:
a. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4) (bg) in that school year.
b. Sum the payments made under sub. (4) (bg) for all of the pupils identified under subd. 1. a. for that school year.
c. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4m) in that school year.
d. Sum the payments made under sub. (4m) (a) for all of the pupils identified under subd. 1. c. for that school year.
e. Sum the amounts calculated under subd. 1. b. and d.
2. If a school district's state aid payment under s. 121.08 is insufficient to cover the reduction under subd. 1., as determined under s. 121.085 (2), the department shall decrease other state aid payments made by the department to the school district by the remaining amount.
3. The department shall ensure that the aid adjustment under subd. 1. does not affect the amount determined to be received by a school district as state aid under s. 121.08 for any other purpose.
55,3351g Section 3351g. 118.60 (4s) of the statutes is created to read:
118.60 (4s) Notwithstanding subs. (4), (4d), (4m), and (4r), a pupil attending a private school participating in the program under this section who is receiving a scholarship under s. 115.7915 shall not be counted as a pupil attending the private school under this section under sub. (4), (4d), (4m), or (4r).
55,3352 Section 3352. 118.60 (6m) (b) 1. of the statutes is amended to read:
118.60 (6m) (b) 1. The number of pupils attending the private school under this section in the previous school year who began participating in the program under this section in the 2015-16 school year or any school year thereafter and the number of pupils attending the private school under this section in the previous school year who began participating in the program under this section before the 2015-16 school year.
55,3353 Section 3353. 118.60 (6m) (b) 3. (intro.) and d. of the statutes are consolidated, renumbered 118.60 (6m) (b) 3. and amended to read:
118.60 (6m) (b) 3. For each of the previous 5 school years in which the private school has participated in the program under this section, all of the following information: d. To to the extent permitted under 20 USC 1232g and 43 CFR part 99, pupil scores on all standardized tests administered under sub. (7) (e) s. 118.30 (1t).
55,3354 Section 3354. 118.60 (6m) (b) 3. a. to c. of the statutes are repealed.
55,3355c Section 3355c. 118.60 (7) (am) of the statutes is renumbered 118.60 (7) (am) 2m. and amended to read:
118.60 (7) (am) 2m. Each private school participating in the program under this section is subject to uniform financial accounting standards established by the department. Annually by September 1 October 15 following a school year in which a private school participated in the program under this section, the private school shall submit to the department all of the following:
a. An independent financial audit of the private school conducted by an independent certified public accountant, accompanied by the auditor's statement that the report is free of material misstatements and fairly presents pupil costs under sub. (4) (bg). The audit under this subdivision shall be limited in scope to those records that are necessary for the department to make payments under subs. (4) and (4m) the private school's eligible education expenses, and beginning in the 2nd school year a private school participates in the program under this section, a copy of a management letter prepared by the auditor. The audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets acquired before 2014 . The audit shall include a calculation of the private school's net eligible education expenses and a calculation of the balance of the private school's fund for future eligible education expenses. The auditor shall conduct his or her audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school. If a private school participating in the program under this section also accepts pupils under s. 119.23, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision and s. 119.23 (7) (am) 1 2m. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 1 2m.
b. Evidence of sound fiscal and internal control practices, as prescribed by the department by rule. An independent auditor engaged to evaluate the private school's fiscal and internal control practices shall conduct his or her evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school's fiscal and internal control practice shall also review any concerns raised in the private school's management letter submitted under subd. 2m. a. The fact that a private school reports a negative reserve balance alone is not evidence that the private school does not have the financial ability to continue operating or that the private school does not follow sound fiscal and internal control practices.
55,3355e Section 3355e. 118.60 (7) (am) 1m. of the statutes is created to read:
118.60 (7) (am) 1m. In this paragraph, "eligible education expenses" means all direct and indirect costs associated with a private school's educational programming for pupils enrolled in grades kindergarten to 12 that are reasonable for the private school to achieve its educational purposes, as determined by the governing body of the private school and reviewed by an independent auditor. "Eligible education expenses" include expenses related to management, insurance, transportation, extracurricular programming and activities, facility and equipment costs, development expenses, and programming that provides child care services before school, after school, or both before and after school.
55,3355g Section 3355g. 118.60 (7) (am) 2m. c. of the statutes is created to read:
118.60 (7) (am) 2m. c. If an independent auditor engaged to evaluate the private school's fiscal and internal control practice determines that the governing body of the private school has not taken reasonable actions to remedy any concerns raised in the management letter submitted under subd. 2m. a. in the previous school year, a report prepared by the independent auditor that includes the auditor's findings related to the governing body's actions to remedy any concerns raised in the management letter for the previous school year.
55,3355m Section 3355m. 118.60 (7) (an) of the statutes is created to read:
118.60 (7) (an) If a private school participating in the program under this section has a cash or investment reserve balance that is greater than 50 percent of the total amount the private school received under this section in the previous school year, the governing body of the private school shall approve a plan for how it will use the amount of the cash or investment reserve that exceeds 50 percent of the total amount the private school received under this section in the previous school year.
55,3355r Section 3355r. 118.60 (7) (b) 3. of the statutes is amended to read:
118.60 (7) (b) 3. Ensure that any teacher's aide employed by the private school has graduated from high school, been granted a declaration of equivalency of high school graduation, been granted a high school diploma by the administrator of a home-based private educational program, or been issued a general educational development certificate of high school equivalency, or has obtained a degree or educational credential higher than a high school diploma, declaration of equivalency of high school graduation, or general educational development certificate of high school equivalency.
55,3355s Section 3355s. 118.60 (7) (d) 1. b. of the statutes is amended to read:
118.60 (7) (d) 1. b. A copy of the school's current certificate of occupancy issued by the municipality within which the school is located. If the private school moves to a new location, the private school shall submit a copy of the new certificate of occupancy issued by the municipality within which the school is located to the department before the attendance of pupils at the new location and before the next succeeding date specified in s. 121.05 (1) (a). If the municipality within which the private school is located does not issue certificates of occupancy, the private school may submit a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy or a letter or form from the municipality within which the private school is located that explains that the municipality does not issue certificates of occupancy. A temporary certificate of occupancy does not meet the requirement of this subdivision. This subdivision applies only to a private school located in an eligible school district.
55,3355t Section 3355t. 118.60 (7) (dr) of the statutes is created to read:
118.60 (7) (dr) A private school participating in the program under this section may elect to maintain an electronic copy of any application submitted on behalf of and any correspondence to or about a pupil attending the private school under this section instead of a paper copy of the application and correspondence. The private school shall maintain electronic copies of pupil applications and correspondence for a period of at least 5 years.
55,3356 Section 3356. 118.60 (7) (e) of the statutes is amended to read:
118.60 (7) (e) Each private school participating in the program under this section shall administer the examinations required under s. 118.30 (1t) or examinations permitted under s. 118.301 (3) to pupils attending the school under the program. The private school may administer additional standardized tests to such pupils.
55,3357 Section 3357. 118.60 (8) of the statutes is repealed.
55,3358 Section 3358. 118.60 (10) (a) 3. of the statutes is amended to read:
118.60 (10) (a) 3. Failed to refund to the state any overpayment made under s. 118.60 (4) (b), 2011 stats., or s. 118.60 (4) (bg), 2011 stats., or under sub. (4) (bg) or (4m) by the date specified by department rule.
55,3358am Section 3358am. 118.60 (11) (bm) of the statutes is created to read:
118.60 (11) (bm) No later than 90 days after receiving a financial audit under sub (7) (am), certify the financial audit. During the 90-day period between receipt and certification, the department's contact with the auditor shall be limited to a single written communication. The department's single written communication to the auditor may include only matters that individually impact the private school's financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section for the previous school year. An auditor who receives a written communication under this paragraph shall respond to the department within 15 days of receiving the written communication.
55,3358b Section 3358b. Subchapter I of chapter 119 [precedes 119.01] of the statutes is created to read:
CHAPTER 119
subchapter i
FiRST CLASS CITY school DISTRICT
55,3358d Section 3358d. 119.02 (1) of the statutes is amended to read:
119.02 (1) "Board" means the board of school directors in charge of the public schools of a city of the 1st class other than those public schools transferred to the opportunity schools and partnership programs under s. 119.33 or subch. II.
55,3358f Section 3358f. 119.02 (2g) of the statutes is created to read:
119.02 (2g) "Commissioner" means the individual in charge of the opportunity schools and partnership program under subch. II.
55,3358h Section 3358h. 119.02 (4) of the statutes is created to read:
119.02 (4) "Opportunity schools and partnership program" means the program under s. 119.33 or the program under subch. II.
55,3358j Section 3358j. 119.04 (1) of the statutes is amended to read:
119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c), 66.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343, 115.345, 115.363, 115.365 (3), 115.38 (2), 115.415, 115.445, 118.001 to 118.04, 118.045, 118.06, 118.07, 118.075, 118.076, 118.10, 118.12, 118.125 to 118.14, 118.145 (4), 118.15, 118.153, 118.16, 118.162, 118.163, 118.164, 118.18, 118.19, 118.20, 118.223, 118.225, 118.24 (1), (2) (c) to (f), (6), (8), and (10), 118.245, 118.255, 118.258, 118.291, 118.292, 118.293, 118.30 to 118.43, 118.46, 118.50, 118.51, 118.52, 118.53, 118.55, 118.56, 120.12 (2m), (4m), (5), and (15) to (27), 120.125, 120.13 (1), (2) (b) to (g), (3), (14), (17) to (19), (26), (34), (35), (37), (37m), and (38), 120.137, 120.14, 120.21 (3), and 120.25 are applicable to a 1st class city school district and board but not, unless explicitly provided in this chapter or in the terms of a contract, to the commissioner or to any school transferred to an opportunity schools and partnership program.
55,3358L Section 3358L. 119.12 (6) of the statutes is renumbered 119.12 (6) (a) (intro.) and amended to read:
119.12 (6) (a) (intro.) The city attorney of the city shall be the legal adviser of and attorney for the board, except that the board may shall retain an attorney to represent the board in any matter if any of the following applies:
1. The mayor, the common council, the city attorney, or the board determines that it the board requires specialized legal expertise not possessed by the city attorney, the.
2. The mayor, the common council, the city attorney , or the board determines that the city attorney does not have sufficient staff to adequately represent the interests of the board or.
3. The mayor, the common council, the city attorney, or the board determines that a conflict of interest exists.
(b) The city attorney shall notify the board as soon as a determination is made under par. (a) that the city attorney is unable to represent the board. The board shall provide the city attorney with reasonable notice of any board meeting at which the board will consider retention of an attorney.
55,3358n Section 3358n. 119.16 (1n) of the statutes is created to read:
119.16 (1n) Contract with the superintendent of schools or with the commissioner. Notwithstanding sub. (1m), immediately upon the transfer of a public school to an opportunity schools and partnership program under s. 119.33 or subch. II, the board shall make the superintendent of schools or the commissioner, respectively, an agent of the board under any lease between the board and the city and shall transfer to the superintendent of schools or the commissioner, respectively, the possession, care, control, and management of all land, buildings, facilities, and other property that is part of the school being transferred.
55,3358p Section 3358p. 119.16 (2) of the statutes is amended to read:
119.16 (2) Establish schools and districts. The board shall maintain the public schools in the city, other than those public schools transferred to the opportunity schools and partnership programs under s. 119.33 and subch. II, and shall establish, organize and maintain such schools as the board determines are necessary to accommodate the children entitled to instruction therein. The board shall divide the city into attendance districts for such schools.
55,3358q Section 3358q. 119.16 (8) of the statutes is amended to read:
119.16 (8) Budget. (a) Annually before adopting its budget for the ensuing school year and at least 5 days before transmitting its completed budget under par. (b), the board shall hold a public hearing on the proposed school budget at a time and place fixed by the board. At least 45 days before the public hearing, the board shall notify the superintendent of schools and the commissioner of the date, time, and place of the hearing. At least one week before the public hearing, the board shall publish a class 1 notice, under ch. 985, of the public hearing.
(b) The board shall transmit its completed budget to the common council on or before the first Monday in August of each year on forms furnished by the auditing officer of the city, and shall include in the budget the information specified under s. 119.46 (1) for all public schools in the city under this chapter, including the schools transferred to the opportunity schools and partnership programs under s. 119.33 and subch. II. The board shall itemize those portions of the budget allocated to schools transferred to the opportunity schools and partnership programs under s. 119.33 and subch. II. Such completed budget shall be published with the budget summary under s. 65.04 (2) or 65.20 and budget under s. 65.05 (7).
55,3358r Section 3358r. 119.16 (9) of the statutes is amended to read:
119.16 (9) School budget. Annually, the board shall prepare a budget for each school in the school district operating under this chapter, other than the schools transferred to the opportunity schools and partnership programs under s. 119.33 and subch. II.
55,3358t Section 3358t. 119.16 (15) of the statutes is created to read:
119.16 (15) Aggregate assessment data of pupils attending a school transferred to an opportunity schools and partnership program. Upon receipt from the superintendent of schools of pupil assessment and achievement data under s. 119.33 (2) (d) or from the commissioner of pupil assessment and achievement data under s. 119.9002 (4) for pupils enrolled in schools transferred to an opportunity schools and partnership program, the board may not make any modifications to the data but shall transmit that data to the state superintendent along with the report submitted under s. 119.44.
55,3358v Section 3358v. 119.18 (1r) of the statutes is renumbered 119.18 (1r) (a) and amended to read:
119.18 (1r) (a) The Subject to par. (b), the board may adopt and modify or repeal rules for its own government and for the organization, discipline and management of the public schools which shall promote the good order and public usefulness of the public schools.
55,3358w Section 3358w. 119.18 (1r) (b) of the statutes is created to read:
119.18 (1r) (b) The board may not establish by rule any limit on the number of pupils who may enroll in a charter school that is not an instrumentality of the school district, as determined under s. 118.40 (7).
55,3360 Section 3360. 119.23 (1) (ah) of the statutes is repealed.
55,3361 Section 3361. 119.23 (1) (b) of the statutes is repealed.
55,3362 Section 3362. 119.23 (1) (c) of the statutes is repealed.
55,3363 Section 3363. 119.23 (2) (a) 1. a. of the statutes is amended to read:
119.23 (2) (a) 1. a. The pupil is a member of a family that has a total family income that does not exceed an amount equal to 3.0 times the poverty level determined in accordance with criteria established by the director of the federal office of management and budget. In this subdivision and sub. (3m), family income includes income of the pupil's parents or legal guardians. The Except as provided in subd. 1. d., the family income of the pupil shall be verified as provided in subd. 1. b. A pupil attending a private school under this section whose family income increases, including a pupil who attended a private school under this section in the 2010-11 school year and whose family income has increased, may continue to attend a private school under this section.
55,3364 Section 3364. 119.23 (2) (a) 1. d. of the statutes is created to read:
119.23 (2) (a) 1. d. In this subd. 1. d., "eligible school district" has the meaning given in s. 118.60 (1) (am). The family income of a pupil does not need to be verified under subd. 1. b. for a pupil who resided in a school district other than an eligible school district and other than the school district operating under this chapter in a school year, attended a participating private school under the program under s. 118.60 in a school district other than an eligible school district in that school year, and applies to attend a participating private school in the program under this section in the school year immediately following that school year.
55,3365 Section 3365. 119.23 (2) (a) 3. of the statutes is amended to read:
119.23 (2) (a) 3. Except as provided in sub. (2) par. (ag) 1., the private school notified the state superintendent of its intent to participate in the program under this section or in the program under s. 118.60, and paid the nonrefundable annual fee set by the department, by February 1 January 10 of the previous school year. The notice shall specify the number of pupils participating in the program under this section and in the program under s. 118.60 for which the school has space. The department shall by rule set the fee charged under this subdivision at an amount such that the total fee revenue covers the costs of employing one full-time auditor to evaluate the financial information submitted by private schools under sub. (7) (am) and (d) 2. and 3. and under s. 118.60 (7) (am) and (d) 2. and 3.
55,3366 Section 3366. 119.23 (2) (a) 6. a. of the statutes is amended to read:
119.23 (2) (a) 6. a. Except as provided in subd. 6. c., all of the private school's teachers have a teaching license issued by the department or a bachelor's degree or a degree or educational credential higher than a bachelor's degree, including a masters or doctorate, from an a nationally or regionally accredited institution of higher education.
55,3367 Section 3367. 119.23 (2) (a) 6. b. of the statutes is amended to read:
119.23 (2) (a) 6. b. All of the private school's administrators have at least a bachelor's degree from an a nationally or regionally accredited institution of higher education or a teaching license or administrator's license issued by the department.
55,3368 Section 3368. 119.23 (3) (a) (intro.) of the statutes is amended to read:
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