2017 - 2018 LEGISLATURE
December 28, 2017 - Introduced by Representatives Kooyenga, Allen, Duchow,
Sanfelippo and Wichgers, cosponsored by Senator Nass. Referred to
Committee on Education.
AB803,1,4 1An Act to renumber and amend 121.07 (6) (am); to amend 121.07 (6) (a)
2(intro.); and to create 121.07 (6) (am) 1., 2. and 3. and 121.07 (6) (ap) of the
3statutes; relating to: excluding costs funded by referenda from shared costs for
4the purpose of determining general equalization aids for school districts.
Analysis by the Legislative Reference Bureau
A school district's shared cost is one of the factors used to calculate a school
district's equalization aid. Generally, under current law, a school district's shared
cost is the sum of the school district's expenditures from its general fund and its debt
service fund. Under this bill, expenditures from either a school district's general
fund or debt service fund that are authorized by an operating or capital referendum
held after the date on which this bill becomes law are excluded from the school
district's shared cost if the school district is a negative tertiary school district. A
school district is a negative tertiary school district if its equalized valuation exceeds
the tertiary guaranteed valuation per member. In other words, under the bill, a
negative tertiary school district will not lose equalization aid for operating and
capital expenditures that exceed the tertiary guarantee and are funded by referenda
approved after this bill becomes law.

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:
AB803,1 1Section 1. 121.07 (6) (a) (intro.) of the statutes is amended to read:
AB803,2,132 121.07 (6) (a) (intro.) “Shared Subject to pars. (am) and (ap), “shared cost" is
3the sum of the net cost of the general fund and the net cost of the debt service fund,
4except that “shared cost" excludes any costs, including attorney fees, incurred by a
5school district as a result of its participation in a lawsuit commenced against the
6state, beginning with such costs incurred in the fiscal year in which the lawsuit is
7commenced, excludes any expenditures from a capital improvement fund created
8under s. 120.135 or a capital improvement trust fund created under s. 120.137,
9excludes any debt service costs associated with an environmental remediation
10project under s. 67.05 (7) (er), and excludes the costs of transporting those transfer
11pupils for whom the school district operating under ch. 119 does not receive
12intradistrict transfer aid under s. 121.85 (6) as a result of s. 121.85 (6) (am). In this
AB803,2 14Section 2. 121.07 (6) (am) of the statutes is renumbered 121.07 (6) (am) (intro.)
15and amended to read:
AB803,3,216 121.07 (6) (am) (intro.) In par. (a), for the purpose of calculating state aid paid
17to a school district beginning in the 2006-07 and 2007-08 2018-19 school years year,
18“shared cost" excludes any the amount expended in the previous school year from the
19school district's fund balance to pay the school district's unfunded pension liability
20under the Wisconsin Retirement System or to pay debt service for debt issued to
21refinance the balance of the unfunded pension liability
calculated as follows if the

1result of excluding such expenditures the amount is an increase in state aid paid to
2the school district under s. 121.08.:
AB803,3 3Section 3. 121.07 (6) (am) 1., 2. and 3. of the statutes are created to read:
AB803,3,74 121.07 (6) (am) 1. Determine the amount levied by the school district or levied
5for school purposes in the current school year that was authorized by a referendum
6approved under s. 121.91 (3) after the effective date of this subdivision .... [LRB
7inserts date].
AB803,3,98 2. Subtract the levy amount set by the school board from the maximum levy
9amount allowed under s. 121.91 (2m).
AB803,3,1110 3. If the difference under subd. 2. is a positive number, subtract that number
11from the amount determined under subd. 1.
AB803,4 12Section 4. 121.07 (6) (ap) of the statutes is created to read:
AB803,3,1613 121.07 (6) (ap) In par. (a), “debt service” excludes debt service on debt
14authorized by a referendum held after the effective date of this paragraph .... [LRB
15inserts date], if the result of excluding the debt service is an increase in state aid paid
16to the school district under s. 121.08.
AB803,3,1717 (End)