LRB-2893/2
TKK:jld
2015 - 2016 LEGISLATURE
November 4, 2015 - Introduced by Representatives Schraa, Jacque, Tittl, Edming,
R. Brooks, T. Larson, Knodl, Skowronski, Murphy, Craig, Jarchow,
Petersen, Gannon, Sanfelippo, Kremer, Neylon, Brandtjen and
Weatherston, cosponsored by Senators Stroebel,
Lasee and Kapenga.
Referred to Committee on Education.
AB481,1,12
1An Act to renumber and amend 24.66 (3) (a), 24.66 (3) (b) and 121.91 (3) (a);
2to amend 7.52 (8), 8.06, 24.66 (3) (am), 24.66 (3) (bm), 24.66 (3) (c) 1., 24.66 (3)
3(c) 2., 24.66 (3) (c) 3., 67.05 (3) (intro.), 67.05 (6), 67.05 (6a) (a) 2. (intro.), 67.05
4(6a) (a) 2. a., 67.05 (6a) (a) 2. b., 67.05 (6a) (am) 1., 67.05 (6a) (b) (intro.), 67.05
5(7) (cc), 67.05 (7) (d) 2., 67.05 (7) (d) 3. and (j), 67.12 (8) (a) 2., 67.12 (12) (e) 1.,
62g. (intro.), 3. and 4., 119.48 (4), 119.49 (1), 119.49 (2) and 121.91 (3) (c); and
to
7create 24.66 (3) (a) 2., 24.66 (3) (b) 2., 24.66 (3) (c) 4., 67.05 (2m), 67.12 (12) (ec),
8119.48 (5), 119.49 (2m), 121.91 (3) (a) 1. b. and 121.91 (3) (a) 2. of the statutes;
9relating to: limitations on borrowing by school districts and the use by school
10districts of resolutions and referenda to authorize bonding for capital projects
11or increase revenue limits and scheduling of school district referendums to
12exceed revenue limits.
Analysis by the Legislative Reference Bureau
Current law provides several mechanisms for a school district to borrow money
and raise revenue.
Loans and Bond Issues
Currently, before a school district may borrow money or issue bonds, the school
board must adopt an initial resolution stating the purposes for and the maximum
amount of the proposed loan or bond issuance. Once an initial resolution has been
adopted, the school board must call a special meeting at which the electors of the
school district will consider the resolution. The school board may either schedule a
special election at which the resolution is submitted by referendum to the electors
of the school district or hold a hearing at which the electors are informed about the
proposed loan or bond issue. If the school board schedules a hearing rather than a
special election and the amount of money to be raised by the bond issue will cause
the aggregate amount of outstanding indebtedness incurred by the school district
without a referendum to exceed the lesser of $1,000,000 or 1.5 percent of the
statewide average equalized valuation per member multiplied by the school district's
membership, a special election may still be required if a sufficient number of school
district electors petition the school district to hold a referendum.
Revenue Limit Adjustments
Although current law generally limits the total amount of revenue that a school
district may receive from general school aids and property taxes to the amount of
revenue increase allowed per pupil in the previous school year, a school board may
increase the school district's revenue limit by a specified amount if the school board
adopts a resolution to that effect and the district's electors approve the increase at
a referendum.
Under current law, the school board must call a special referendum at which the
electors vote to approve or reject the resolution. Current law also permits the school
board to schedule the referendum to be held concurrently with any primary election
or election that falls no sooner than 70 days after the date on which the board files
the resolution.
Loans from the State Trust Funds
Current law permits a school board to apply to the Board of Commissioners of
Public Lands for a loan to the school district from the state trust funds (the common
school fund, the normal school fund, the university fund, and the agricultural college
fund). With certain exceptions, in order for the school board of a unified school
district to obtain a state trust fund loan, the application must be approved by a
majority of the electors of the school district who vote on the application by
referendum at a special election. With certain exceptions, in order for the school
board of a first class city school district (the Milwaukee Public School District, or
MPS) or of a common or union high school district to obtain a state trust fund loan,
a majority of the legal voters of the school district who vote on the question must
approve the loan application, but the school board is not required to hold a special
election on the application. Unless certain factors apply, the school board of any
school district, including a unified school district, may adopt and record a resolution
to obtain a loan with a repayment period of ten years or less without submitting the
application to the voters by referendum at a special election. The factors affecting
whether the school board must hold a special election include the amount of the loan,
the purpose of the loan, the aggregate amount of outstanding indebtedness of the
school district incurred without a referendum, and whether a sufficient number of
electors of the school district timely file a petition for a referendum.
Temporary Borrowing
Under current law, if two-thirds of the school board members approve a
resolution to do so, the school board of any common, union high school, or unified
school district may temporarily borrow money in June, July, and August to meet the
immediate expenses associated with operating and maintaining the schools of the
district from July1 to the last working day of October.
Promissory Notes
Current law permits a school district to adopt a resolution to borrow money
through the issuance of promissory notes. A referendum may be required if the
amount to be borrowed exceeds $5,000, if the borrowing causes the school district's
outstanding indebtedness incurred without a referendum to exceed the lesser of
$1,000,000 or 1.5 percent of the statewide average equalized valuation per member
multiplied by the school district's membership, and if a sufficient number of school
district electors petition the school district to hold a referendum.
Levy Limit Adjustments and Bond Issues by the Milwaukee Public School
District
Under current law, the board of directors of MPS (MPS board) must annually
submit its budget to the common council of the City of Milwaukee. The MPS board
must include in its budget the amount of money required to operate the public schools
in the city, repair and keep in order school buildings and equipment, make
improvements to school property, and purchase necessary additions to school sites.
Upon receipt of its budget, the common council must levy and and collect a tax
sufficient for the MPS board to fulfill its statutory obligations. Current law also
permits the MPS board to, upon a two-thirds vote, communicate with the common
council when either of the following applies: 1) the MPS board determines it is
necessary to exceed its levy rate in order to purchase school sites, construct school
buildings and additions thereto, or remodel existing buildings; or 2) the MPS board
determines it is necessary to issue bonds in order to construct buildings or additions
to buildings, remodel buildings, or purchase school sites. Upon receipt of a
communication from the MPS board, the common council must schedule a
referendum for the voters of the city to approve or reject the decision of the MPS
board.
This bill provides that, if a school board applies or adopts a resolution to borrow
money or adopts a resolution to increase revenue through any of the mechanisms
identified above and the application, resolution, or referendum is rejected by a
majority of the electors of the school district, the school board may not use any of the
mechanisms identified in the bill to borrow money or raise revenue for two
consecutive 365-day periods.
If a school district experiences a natural disaster, including a fire, the
prohibitions established in the bill do not apply for the six-month period
immediately following the natural disaster.
Also under this bill, unless the school board experiences a natural disaster,
including a fire, a school board may schedule a referendum for the purpose of
submitting to the electors of a school district a resolution to increase the school
district's revenue limit only concurrently with a spring election or with the general
election. A spring election is held annually on the first Tuesday in April. The general
election occurs in even-numbered years on the Tuesday following the first Monday
in November. In any school year in which a school district experiences a natural
disaster, the school board may call a special referendum on the resolution, provided
the special referendum is held not sooner than 70 days after the resolution is filed.
For further information see the 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:
AB481,1
1Section
1. 7.52 (8) of the statutes is amended to read:
AB481,4,122
7.52
(8) The board of absentee ballot canvassers shall make full and accurate
3return of the votes cast for each candidate and proposition on the tally sheet forms.
4Each tally sheet shall record the returns for each office or referendum by ward,
5unless combined returns are authorized in accordance with s. 5.15 (6) (b), in which
6case the tally sheet shall record the returns for each group of combined wards. After
7recording the votes, the board of absentee ballot canvassers shall seal in a carrier
8envelope outside the ballot bag or container one inspector's statement under sub. (4)
9(d), one tally sheet, and one poll list for delivery to the county clerk, unless the
10election relates only to
municipal or school district offices or
municipal offices or 11referenda. The board of absentee ballot canvassers shall also similarly seal one
12statement, one tally sheet, and one poll list for delivery to the municipal clerk.
AB481,2
13Section
2. 8.06 of the statutes is amended to read:
AB481,4,17
148.06 Special elections may be called. Towns, cities, villages
, and
, subject
15to s. 121.91 (3) (a), school districts
, may call special elections for any purpose
16authorized by law. If an election is called for a special referendum, the election shall
17be noticed under s. 8.55.
AB481,3
1Section
3. 24.66 (3) (a) of the statutes is renumbered 24.66 (3) (a) 1. and
2amended to read:
AB481,5,163
24.66
(3) (a) 1. Every application for a loan, the required repayment of which
4exceeds 10 years, shall be approved and authorized for a common, union high
, or 1st
5class city school district by a vote of a majority of its legal voters voting on this
6question. If the vote is taken at a special meeting the objects thereof shall be clearly
7stated in the notice of the meeting. The application shall state the facts in detail
8respecting the holding of the meeting, and the taking and the result of the vote
9required. The application shall be signed by a majority of the members of the district
10board and verified by the clerk. The statement accompanying the application shall
11contain a correct map or plat of the district. If the district is a joint district, the
12statement accompanying the application shall show the assessed valuation in its
13several parts separately, so that the valuation of each part of the district which lies
14in each town or municipality may be readily shown.
If a majority of the legal voters
15of the school district who vote on an application under this subdivision reject the
16application, the school district shall be subject to the prohibitions under subd. 2.
AB481,4
17Section
4. 24.66 (3) (a) 2. of the statutes is created to read:
AB481,6,218
24.66
(3) (a) 2. a. Except as provided in subd. 2. b., if an application for a loan
19is submitted to the legal voters of the school district as provided in subd. 1. and a
20majority of the voters who vote on the application reject the application, the school
21district may not submit another application under this paragraph or proceed under
22par. (am), (b), (bm), or (c), to the extent those paragraphs are applicable to the school
23district, or under s. 67.05, 67.12, 119.48, 119.49, or 121.91 (3), to the extent those
24sections are applicable to the school district, for the 730-day period beginning on the
1date on which the governing body of the school district submitted to the legal voters
2of the school district the application rejected as described in this subdivision.
AB481,6,53
b. For a school district that experiences a natural disaster, including a fire, that
4causes the school district's costs to increase, the prohibitions in this subdivision do
5not apply in the 6-month period immediately following the natural disaster.
AB481,5
6Section
5. 24.66 (3) (am) of the statutes is amended to read:
AB481,6,137
24.66
(3) (am)
For short-term loans by common, union high and 1st class city
8school districts. Every application for a loan, the required repayment of which is 10
9years or less, shall be approved and authorized for a common, union high
, or 1st class
10city school district under par. (a) or (c), to the extent applicable.
If a majority of the
11legal voters of the school district who vote on an application under this paragraph
12reject the application, the school district shall be subject to the prohibitions under
13par. (a) 2. or (c) 4.
AB481,6
14Section
6. 24.66 (3) (b) of the statutes is renumbered 24.66 (3) (b) 1. and
15amended to read:
AB481,6,2516
24.66
(3) (b) 1. Every application for a loan, the required repayment of which
17exceeds 10 years, shall be approved and authorized for a unified school district by a
18majority vote of the members of the school board at a regular or special meeting of
19the school board. Every vote so required shall be by ayes and noes duly recorded.
20In addition, the application shall be approved for a unified school district by a
21majority vote of the electors of the school district at a special election as provided
22under sub. (4).
If a majority of the legal voters of the school district who vote on an
23application under this subdivision reject the application or if a majority of the voters
24who vote at a special election as provided under sub. (4) reject the question, the school
25district shall be subject to the prohibitions under subd. 2.
AB481,7
1Section
7. 24.66 (3) (b) 2. of the statutes is created to read:
AB481,7,102
24.66
(3) (b) 2. a. Except as provided in subd. 2. b., if an application for a loan
3is submitted to the legal voters of the school district as provided in subd. 1. and a
4majority of the voters who vote on the application reject the application, or if a
5majority of the electors of the school district who vote at a special election held as
6required under sub. (4) reject the question, the school district may not submit
7another application under this paragraph or proceed under par. (a), (am), (bm), or (c),
8to the extent applicable, or under s. 67.05, 67.12, 119.48, 119.49, or 121.91 (3), to the
9extent applicable, for the 730-day period beginning on the date on which the school
10district first submitted the application to the voters as described in this subdivision.
AB481,7,1311
b. For a school district that experiences a natural disaster, including a fire, that
12causes the school district's costs to increase, the prohibitions in this subdivision do
13not apply in the 6-month period immediately following the natural disaster.
AB481,8
14Section
8. 24.66 (3) (bm) of the statutes is amended to read:
AB481,7,2015
24.66
(3) (bm)
For short-term loans by unified school districts. Every
16application for a loan, the required repayment of which is 10 years or less, shall be
17approved and authorized for a unified school district under par. (b) or (c), to the extent
18applicable.
If a majority of the legal voters of the school district who vote on an
19application under this paragraph reject the application, the school district shall be
20subject to the prohibitions under par. (b) 2. or (c) 4.
AB481,9
21Section
9. 24.66 (3) (c) 1. of the statutes is amended to read:
AB481,8,222
24.66
(3) (c) 1. If the procedure in par. (a) or (b) is not used for the approval of
23a school district loan, the required repayment of which is 10 years or less, the
24governing body of the school district, before any certificate of indebtedness is issued,
25shall
, subject to the prohibitions under subd. 4., adopt and record a resolution
1specifying the purposes and the maximum amount of the certificate of indebtedness
2issued.
AB481,9,125
24.66
(3) (c) 2. Unless the purpose and amount of the borrowing have been
6approved by the electors under s. 67.05 (6a) or considered approved by the electors
7under s. 67.05 (7) (d) 3., the purpose is to refund any outstanding obligation, the
8purpose is to pay unfunded prior service liability contributions under the Wisconsin
9Retirement System if all of the proceeds of the note will be used for that purpose, or
10the borrowing would not be subject to a referendum as a bond issue under s. 67.05
11(7) (cc), (er), (h), or (i), or s. 67.12 (12) (e) 2g., (f), or (h) applies,
and provided the school
12board is not prohibited from adopting a resolution by subd. 4., the school district clerk
13shall, within 10 days after a governing body of a school district adopts a resolution
14as described
above in subd. 1. to issue a certificate of indebtedness, publish notice of
15such adoption as a class 1 notice, under ch. 985. Alternatively, the notice may be
16posted as provided under s. 10.05. The notice need not set forth the full contents of
17the resolution, but shall state the maximum amount proposed to be borrowed, the
18purpose thereof, that the resolution was adopted under this subsection, and the place
19where, and the hours during which, the resolution may be inspected. If, within 30
20days after publication or posting, a petition conforming to the requirements of s. 8.40
21is filed with the school district clerk for a referendum on the resolution signed by at
22least 7,500 electors of the district or at least 20 percent of the number of district
23electors voting for governor at the last general election, as determined under s.
24115.01 (13), whichever is the lesser, then the resolution shall not be effective unless
25adopted by a majority of the district electors voting at the referendum. The
1referendum shall be called in the manner provided under s. 67.05 (6a), except that
2the question which appears on the ballot shall be "Shall .... (name of district) borrow
3the sum of $.... for (state purpose) by issuing its general obligation promissory note
4(or notes) under section 24.66 (3) of the Wisconsin Statutes?". If a governing body
5of a school district adopts a resolution to borrow a sum of money under this
6subsection and a sufficient petition for referendum is not filed within the time
7permitted, then the power of the governing body of a school district to borrow the sum
8and expend the sum for the purpose stated shall be deemed approved by the school
9district electors upon the expiration of the time for filing the petition.
If a majority
10of the school district electors who vote on a referendum held under this subdivision
11reject the resolution, the governing body shall be subject to the prohibitions in subd.
124.
AB481,11
13Section
11. 24.66 (3) (c) 3. of the statutes is amended to read:
AB481,9,1814
24.66
(3) (c) 3. If the governing body of a school district adopts a resolution to
15borrow a sum of money under this subsection, and if
subd. subds. 2.
does and 4. do 16not apply, the governing body of a school district has the power to borrow and spend
17the sum for the purpose stated without the approval of the electors of the school
18district.
AB481,12
19Section
12. 24.66 (3) (c) 4. of the statutes is created to read:
AB481,9,2520
24.66
(3) (c) 4. a. Except as provided in subd. 4. b., if the governing body of the
21school district adopts a resolution as provided in subd. 1., submits the resolution to
22the school district electors for approval as provided in subd. 2., and a majority of the
23electors who vote on the referendum reject the resolution, the governing body may
24not adopt another resolution under this paragraph or proceed under par. (a), (am),
25(b), or (bm) to the extent those paragraphs are applicable to the school district or
1under s. 67.05, 67.12, 119.48, 119.49, or 121.91 (3), to the extent those sections are
2applicable to the school district, for the 730-day period beginning on the date on
3which the district board adopted the resolution rejected as described in this
4subdivision.
AB481,10,75
b. For a school district that experiences a natural disaster, including a fire, that
6causes the school district's costs to increase, the prohibitions in this subdivision do
7not apply in the 6-month period immediately following the natural disaster.
AB481,13
8Section
13. 67.05 (2m) of the statutes is created to read:
AB481,10,219
67.05
(2m) Use of referendum procedure by a school district; when
10prohibited. (a)
Permissive referendum prohibited. 1. Except as provided in subd.
112., if the governing body of a school district adopts an initial resolution for which a
12referendum is required only upon the petition of a designated number of electors of
13that school district, the designated number of electors of that school district files a
14petition that satisfies the requirements of s. 8.40, and a majority of the electors who
15vote on the referendum reject the resolution, the governing body may neither adopt
16another initial resolution under this section or a resolution under s. 67.12 (8) (a) 2.
17or (12) (e), nor hold a referendum seeking approval to borrow money or issue
18municipal obligations, nor proceed under s. 24.66 (3), 119.48, 119.49, or 121.91 (3),
19to the extent those sections are applicable to the school district, for the 730-day
20period beginning on the date on which the governing body of the school district
21adopted the initial resolution described in this paragraph.
AB481,10,2422
2. For a school district that experiences a natural disaster, including a fire, that
23causes the school district's costs to increase, the prohibitions in this paragraph do not
24apply in the 6-month period immediately following the natural disaster.
AB481,11,10
1(b)
Referendum prohibited. 1. Except as provided in subd. 2., if the governing
2body of a school district adopts an initial resolution for which a referendum is
3required and a majority of the electors who vote on the referendum reject the
4resolution, the governing body may neither adopt another initial resolution under
5this section or a resolution under s. 67.12 (8) (a) 2. or (12) (e), nor hold a referendum
6seeking approval to borrow money or issue municipal obligations, nor proceed under
7s. 24.66 (3), 119.48, 119.49, or 121.91 (3), to the extent those sections are applicable
8to the school district, for the 730-day period beginning on the date on which the
9governing body of the school district adopted the initial resolution described in this
10paragraph.
AB481,11,1311
2. For a school district that experiences a natural disaster, including a fire, that
12causes the school district's costs to increase, the prohibitions in this paragraph do not
13apply in the 6-month period immediately following the natural disaster.