LRB-1259/1
ARG:cdc
2019 - 2020 LEGISLATURE
July 23, 2019 - Introduced by Senators Marklein and Olsen, cosponsored by
Representatives Quinn, Kitchens, Duchow, Kulp, Skowronski and Tusler.
Referred to Committee on Education.
SB327,1,3 1An Act to amend 121.91 (4) (f) 1. and 121.91 (8) of the statutes; relating to: the
2school district revenue limit adjustment for declining enrollment and the prior
3year base revenue hold harmless adjustment.
Analysis by the Legislative Reference Bureau
This bill makes changes to the school district revenue limit adjustment for
declining enrollment and terminates an adjustment establishing a minimum initial
revenue limit, commonly known as the prior year base revenue hold harmless
adjustment.
Current law generally limits the total amount of revenue per pupil a school
district may receive from general school aids and property taxes in a school year to
the amount of revenue received per pupil in the previous school year. Per pupil
revenue is calculated using a three-year rolling average of pupil enrollment,
comparing the average number of pupils enrolled in the three previous school years
and the average of the number of pupils enrolled in the current and two preceding
school years. There are several exceptions to the revenue limit, including a revenue
limit adjustment for a school district with declining enrollment. If a school district's
enrollment declines, its revenue limit is increased in the year of the decline by the
amount of additional revenue that would have been allowed had there been no
decline in enrollment.
This bill modifies the revenue limit adjustment for declining enrollment in two
ways. First, a decline in enrollment is measured by comparing the three-year rolling
average of pupil enrollment ending with the current school year against the

three-year average of pupil enrollment for the 2016-17, 2017-18, and 2018-19
school years. Second, if a school district's enrollment declines, the school district
receives an adjustment to its revenue limit equal to the allowable revenues that 90
percent of the decline in enrollment would have generated. However, there is a limit
to this adjustment, as for purposes of the adjustment calculation a maximum 10
percent decline in enrollment is used.
Current law also provides that if a school district's initial revenue limit for the
current school year, after consideration of certain factors, is less than the district's
base revenue from the previous school year, the district's initial revenue limit is set
equal to the prior year's base revenue. The bill terminates this adjustment, for the
2019-20 school year and each school year thereafter.
For further information see the state and 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:
SB327,1 1Section 1. 121.91 (4) (f) 1. of the statutes is amended to read:
SB327,2,102 121.91 (4) (f) 1. Except as provided in subd. 1m., for the 2007-08 2019-20 school
3year or any school year thereafter, if the average of the number of pupils enrolled in
4the current and the 2 preceding school years is less than the average of the number
5of pupils enrolled in the 3 previous 2016-17, 2017-18, and 2018-19 school years, the
6limit otherwise applicable under sub. (2m) is increased by the additional amount
7that would have been calculated had there been no the decline in average enrollment
8been 10 percent of what it was, except that, for a decline in average enrollment that
9is greater than 10 percent, the additional amount calculated under this subdivision
10shall be calculated as if the decline in average enrollment were 10 percent
.
SB327,2 11Section 2. 121.91 (8) of the statutes is amended to read:
SB327,3,912 121.91 (8) If a school district's initial revenue limit for the current school year,
13as calculated under s. 121.905 or sub. (2m), whichever is appropriate, before making
14any adjustments under sub. (3) or (4), is less than the amount determined by
15multiplying the amount under sub. (2m) (i) 1. by the average of the number of pupils

1enrolled in the 3 preceding school years, the school district's initial revenue limit for
2the current school year, before making any adjustments under sub. (3) or (4), is the
3amount determined by multiplying the amount under sub. (2m) (i) 1. by the average
4of the number of pupils enrolled in the 3 preceding school years. Any additional
5revenue received by a school district as a result of this subsection shall not be
6included in the base for determining the school district's limit under sub. (2m) for the
7following school year. This subsection does not apply to a school district's revenue
8limit calculated for the 2011-12 and, 2012-13, and 2019-20 school years or for any
9school year after the 2019-20 school year
.
SB327,3,1010 (End)
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