Summary of factual data and analytical methodologies:
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. However, there are several exceptions (“exemptions”) to the revenue limit. For example, school boards were authorized under prior law to adopt a resolution to exceed the school district’s revenue limit in any school year by an amount spent by the school district in that school year on a project to implement energy efficiency measures or to purchase energy efficiency products if the energy efficiency project is governed by a performance contract. PI 15 was then promulgated into the DPI Administrative Code on May 1, 2016, to ensure compliance with state law.
Since then, 2017 Wisconsin Act 59, the 2017-19 biennial budget, prohibited school boards from considering a resolution to utilize the revenue limit exemption for energy efficiencies after December 31, 2017, until December 3018. The rule no longer reflects statute as modified by Act 59 and unintentionally creates barriers for school boards in carrying out resolutions that were passed before the enactment of Act 59. Therefore, a rule change is needed to reflect the changes in statute as a result of Act 59. Otherwise, rule will not be consistent with current law and school boards would be required to spend up to the resolution amounts in accordance with the current rule. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: N/A
Anticipated costs incurred by private sector: N/A
Effect on small business:
The proposed rules will have no significant economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats. Agency contact person (including email and telephone):
Carl Bryan
Budget and Policy Analyst
Wisconsin Department of Public Instruction
(608) 267-9127
Place where comments are to be submitted and deadline for submission:
Comments should be submitted to Carl Bryan, Department of Public Instruction, 125 S. Webster Street, P.O. Box 7841, Madison, WI 53707-7841 or at adminrules@dpi.wi.gov. The Department will publish a hearing notice in the Administrative Register which will provide information on the deadline for the submission of comments. SECTION 1. PI 15.01 is amended to read:
PI 15.01 Purpose. A school board may not exceed its revenue limit under s. 121.91 (2m), Stats., except as allowed under s. 121.91 (3), (4), and (8), Stats. This chapter sets forth eligibility criteria and procedures for allowing revenue limit exemptions for energy efficiency measures, and energy efficiency products as allowed under s. 121.91 (4) (o), Stats. This section applies to any resolution adopted under this section before January 1, 2018. SECTION 2. PI 15.03 (3) (intro.) and (c) are amended to read:
PI 15.03 (3) A resolution under this section shall be passed by October 1 and include all of the following information:
(c) The maximum amount to be expended in accordance with s. 121.91 (4) (o) 1. or 1m., Stats. SECTION 3. PI 15.03 (3) (g) and (Note) are repealed.
SECTION 4. PI 15.03 (5) is amended to read:
PI 15.03 (5) The school board shall include a levy amount no greater than the maximum levy amount specified in the resolution under sub. (3) (c) when establishing its tax levies under s. 120.12 (3), Stats. SECTION 5. PI 15.03 (6) is amended to read:
PI 15.03 (6) The school board shall incur the expenditure authorized in its resolution under sub. (3) (c) in an amount no less than the levy amount included under sub. (5).
SECTION 6. PI 15.04 (2) is amended to read:
PI 15.04 (2) The department shall adjust the school district’s revenue limit to include the levy amount specified in the resolution under s. PI 15.03 (3) (c)(5). SECTION 7. PI 15 Appendix A is repealed.
SECTION 8. STATEMENT OF EMERGENCY
The Department of Public Instruction finds an emergency exists and that a rule is necessary for the immediate preservation of the public welfare. A statement of the facts constituting the emergency is:
The prohibition on school boards from considering a resolution to utilize the revenue limit exemption for energy efficiencies, as provided by 2017 Wisconsin Act 59, will become effective on December 31, 2017, and an emergency rule is needed to administer these changes in advance of the required November 1, 2018, date for school boards to set their tax levies for the 2018-19 school year. The emergency rules will conform current processes to changes in statute for the electorate to vote on a tax for the purposes set forth in s. 120.10 (6) to (11), Stats., and for school boards to determine if the tax voted on at the annual meeting is sufficient to operate and maintain the schools for the next year. The rules will assist school boards to properly approve the 2018-19 budget and set the Fall 2018 property tax levy before November 1, 2018. SECTION 9. EFFECTIVE DATE:
The proposed rules contained in this order shall take effect on the first day of the month commencing after the date of publication in the Wisconsin Administrative Register, as provided in s. 227.22 (2) (intro.), Stats. Dated this _____ day of ____________, 2018
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Tony Evers, PhD
State Superintendent
