March 2008 Special Session
2007 - 2008 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 1
March 12, 2008 - Offered by Representative Huebsch.
AB1-ASA1,1,5 1An Act to amend 13.101 (6) (a), 16.50 (1) (b), 16.518 (title), 16.52 (10), 20.003
2(4) (ft), 20.003 (4) (fv), 118.153 (4) (b), 121.007, 121.15 (1m) (a) 3. and 121.15
3(1m) (b); to create 16.518 (2m), 16.518 (3) (b) 3., 20.255 (2) (at) and 121.15 (1m)
4(a) 4. of the statutes; and to affect 2007 Wisconsin Act 20, section 9201 (1c) (a);
5relating to: state finances and appropriations.
Analysis by the Legislative Reference Bureau
education
Under current law, the payment of $75,000,000 in general school aid is delayed
until the fourth Monday in July of the succeeding school year. This bill delays the
payment of an additional $125,000,000 in general school aid from June to July and
requires that both delayed payments be made on the first Monday in July.
Current law provides that if in any fiscal year the amount of moneys deposited
into the general fund that are designated as "Taxes" exceeds the amount of such
moneys projected to be deposited into the general fund, one-half of the excess must
be transferred to the budget stabilization fund. Under this bill, the excess must be
used to reduce the amounts of the delayed school aid payments. Any amount in
excess of $200,000,000 is transferred to the budget stabilization fund.

state government
This bill transfers $55,000,000 from the budget stabilization fund to the general
fund during the 2007-08 fiscal year.
Current statutes contain a rule of proceeding governing legislative action on
certain bills. Generally, the rule provides that no bill directly or indirectly affecting
general purpose revenues may be adopted if the bill would cause the estimated
general fund balance on June 30 of any fiscal year to be less than a certain amount
of the total general purpose revenue appropriations for that fiscal year. For fiscal
years 2007-08 and 2008-09, the amount is $65,000,000. The bill reduces this
amount in each of these fiscal years to $20,000,000.
2007 Wisconsin Act 20 requires the secretary of administration (secretary) to
lapse or transfer $200,000,000 to the general fund from certain appropriations to
executive branch state agencies in the 2007-09 fiscal biennium and another
$200,000,000 in the 2009-11 fiscal biennium.
This bill decreases the amount of this required lapse or transfer to $150,000,000
in the 2007-09 fiscal biennium and $150,000,000 in the 2009-11 fiscal biennium, but
prohibits the secretary from lapsing or transferring any of these moneys from
appropriations to the Department of Transportation or an appropriation to the
Department of Public Instruction (DPI) for general equalization aids.
The bill requires the secretary to lapse to the general fund from the
unencumbered balances of general purpose revenues appropriations to executive
branch state agencies, other than an appropriation to DPI for general equalization
aids, and most sum sufficient appropriations and appropriations of federal revenues,
an amount equal to $250,000,000 during the 2007-09 fiscal biennium and
$250,000,000 during the 2009-11 fiscal biennium. For the purpose of making the
lapses, the bill permits the secretary to reduce amounts in the compensation reserve
dedicated to fund unbudgeted, state employee salary and fringe benefits cost
increases.
For further information see the state 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:
AB1-ASA1, s. 1 1Section 1. 13.101 (6) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
2is amended to read:
AB1-ASA1,3,153 13.101 (6) (a) As an emergency measure necessitated by decreased state
4revenues and to prevent the necessity for a state tax on general property, the
5committee may reduce any appropriation made to any board, commission,
6department, or the University of Wisconsin System, or to any other state agency or

1activity, by such amount as it deems feasible, not exceeding 25% of the
2appropriations, except appropriations made by ss. 20.255 (2) (ac), (at), (bc), (bh), (cg),
3and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax), and (6)
4(af), (aq), (ar), and (au), 20.435 (6) (a) and (7) (da), and 20.437 (2) (a) and (dz) or for
5forestry purposes under s. 20.370 (1), or any other moneys distributed to any county,
6city, village, town, or school district. Appropriations of receipts and of a sum
7sufficient shall for the purposes of this section be regarded as equivalent to the
8amounts expended under such appropriations in the prior fiscal year which ended
9June 30. All functions of said state agencies shall be continued in an efficient
10manner, but because of the uncertainties of the existing situation no public funds
11should be expended or obligations incurred unless there shall be adequate revenues
12to meet the expenditures therefor. For such reason the committee may make
13reductions of such appropriations as in its judgment will secure sound financial
14operations of the administration for said state agencies and at the same time
15interfere least with their services and activities.
AB1-ASA1, s. 2 16Section 2. 16.50 (1) (b) of the statutes is amended to read:
AB1-ASA1,3,1817 16.50 (1) (b) This subsection does not apply to appropriations under ss. 20.255
18(2) (ac), and (at), 20.835, and 20.865 (4).
AB1-ASA1, s. 3 19Section 3. 16.518 (title) of the statutes is amended to read:
AB1-ASA1,3,22 2016.518 (title) Transfers Reductions in school aid; delayed payment and
21transfers
to the budget stabilization fund and the cash building projects
22fund
.
AB1-ASA1, s. 4 23Section 4. 16.518 (2m) of the statutes is created to read:
AB1-ASA1,4,324 16.518 (2m) (a) If the amount of moneys projected to be deposited in the general
25fund during the fiscal year that are designated as "Taxes" in the summary are less

1than the amount of such moneys actually deposited in the general fund during the
2fiscal year, the secretary shall reduce the amount of the delayed general school aid
3payment required under s. 121.15 (1m) (a) 4. by the difference.
AB1-ASA1,4,74 (b) If there is a balance remaining after the amount of the delayed general
5school aid payment required under s. 121.15 (1m) (a) 4. is reduced to zero under par.
6(a), the secretary shall use it to reduce the amount of the delayed general school aid
7payment required under s. 121.15 (1m) (a) 3.
AB1-ASA1, s. 5 8Section 5. 16.518 (3) (b) 3. of the statutes is created to read:
AB1-ASA1,4,119 16.518 (3) (b) 3. If the amounts of the delayed general school aid payments
10required under s. 121.15 (1m) (a) 3. and 4. are not reduced to zero under sub. (2m),
11the secretary may not make the transfer under par. (a).
AB1-ASA1, s. 6 12Section 6. 16.52 (10) of the statutes is amended to read:
AB1-ASA1,4,1613 16.52 (10) Department of public instruction. The provisions of sub. (2) with
14respect to refunds and sub. (5) (a) with respect to reimbursements for the prior fiscal
15year shall not apply to the appropriation appropriations under s. 20.255 (2) (ac) and
16(at)
.
AB1-ASA1, s. 7 17Section 7. 20.003 (4) (ft) of the statutes is amended to read:
AB1-ASA1,4,1818 20.003 (4) (ft) For fiscal year 2007-08, $65,000,000 $20,000,000.
AB1-ASA1, s. 8 19Section 8. 20.003 (4) (fv) of the statutes is amended to read:
AB1-ASA1,4,2020 20.003 (4) (fv) For fiscal year 2008-09, $65,000,000 $20,000,000.
AB1-ASA1, s. 9 21Section 9. 20.255 (2) (at) of the statutes is created to read:
AB1-ASA1,4,2522 20.255 (2) (at) General equalization aids; reduction in delayed payment. A sum
23sufficient equal to the amount of the reductions made under s. 16.518 (2m) in the
24current fiscal year to the amounts of the delayed school aid payments under s. 121.15
25(1m) (a) 3. and 4., for the payment of educational aids under s. 121.08.
AB1-ASA1, s. 10
1Section 10. 118.153 (4) (b) of the statutes is amended to read:
AB1-ASA1,5,82 118.153 (4) (b) Upon receipt of a school board's annual report under par. (a) the
3state superintendent shall pay to the school district from the appropriation under s.
420.255 (2) (bc), for each pupil enrolled in a program for children at risk who achieved
5at least 3 of the objectives under par. (c) in the previous school year, additional state
6aid in an amount equal to 10% of the school district's average per pupil aids provided
7under s. 20.835 (7) (a), 1991 stats., and s. 20.255 (2) (ac) and (at) in the previous
8school year.
AB1-ASA1, s. 11 9Section 11. 121.007 of the statutes is amended to read:
AB1-ASA1,5,15 10121.007 Use of state aid; exemption from execution. All moneys paid to
11a school district under s. 20.255 (2) (ac), (at), (bc), (cg), and (cr), shall be used by the
12school district solely for the purposes for which paid. Such moneys are exempt from
13execution, attachment, garnishment, or other process in favor of creditors, except as
14to claims for salaries or wages of teachers and other school employees and as to
15claims for school materials, supplies, fuel, and current repairs.
AB1-ASA1, s. 12 16Section 12. 121.15 (1m) (a) 3. of the statutes is amended to read:
AB1-ASA1,5,2117 121.15 (1m) (a) 3. Beginning in the 1999-2000 2007-2008 school year,
18annually the state shall pay to school districts, from the appropriation under s.
1920.255 (2) (ac), an amount equal to $75,000,000, less the sum of the reductions made
20to the amount in the previous and current fiscal years under s. 16.518 (2m) (b),
on
21the 4th first Monday in July of the following school year.
AB1-ASA1, s. 13 22Section 13. 121.15 (1m) (a) 4. of the statutes is created to read:
AB1-ASA1,6,223 121.15 (1m) (a) 4. Beginning in the 2007-08 school year, in addition to the
24payment delay under subd. 3., annually the state shall pay to school districts, from
25the appropriation under s. 20.255 (2) (ac), an amount equal to $125,000,000, less the

1sum of the reductions made to the amount in the previous and current fiscal years
2under s. 16.518 (2m) (a), on the first Monday in July of the following school year.
AB1-ASA1, s. 14 3Section 14. 121.15 (1m) (b) of the statutes is amended to read:
AB1-ASA1,6,84 121.15 (1m) (b) The percentages under subs. (1) (a) and (1g) (a) shall be reduced
5proportionally to reflect the payments made under par. (a). 3. The percentage paid
6in June under subs. (1) (a) and (1g) (a) shall be reduced to reflect the payment made
7under par. (a) 4.
School districts shall treat the payments made in July under par.
8(a) as if they had been received in the previous school year.
AB1-ASA1, s. 15 9Section 15. 2007 Wisconsin Act 20, section 9201 (1c) (a) is amended to read:
AB1-ASA1,6,2010[2007 Wisconsin Act 20] Section 9201 (1c) (a) Notwithstanding sections 20.001
11(3) (a) to (c) and 25.40 (3) of the statutes, but subject to paragraph (d), the secretary
12of administration shall lapse to the general fund or transfer to the general fund from
13the unencumbered balances of appropriations to executive branch state agencies,
14other than sum sufficient appropriations and appropriations of federal revenues, an
15amount equal to $200,000,000 $150,000,000 during the 2007-09 fiscal biennium and
16$200,000,000 $150,000,000 during the 2009-11 fiscal biennium. This paragraph
17shall not apply to appropriations to the department of public instruction under
18section 20.255 (2) (ac) of the statutes and to
appropriations to the Board of Regents
19of the University of Wisconsin System, the department of transportation, and to the
20technical college system board.
AB1-ASA1, s. 9137 21Section 9137. Nonstatutory provisions; Public Instruction.
AB1-ASA1,6,2422 (1) For the following purposes, the department of public instruction shall
23consider the amount appropriated under section 20.255 (2) (ac) of the statutes as if
24the decrease in that amount under Section 9237 (1) of this act had not occurred:
AB1-ASA1,7,2
1(a) For the purpose of calculating the payment under section 119.23 (4) (b) 2.
2of the statutes in the 2007-08 and 2008-09 fiscal years.
AB1-ASA1,7,53 (b) For the purpose of calculating the secondary guaranteed valuation per
4member under section 121.07 (7) (b) of the statutes and the school aid reduction
5under section 121.08 (4) of the statutes in the 2007-08 fiscal year.
AB1-ASA1, s. 9155 6Section 9155. Nonstatutory provisions; other.
AB1-ASA1,7,107 (1) Budget stabilization fund. Notwithstanding section 20.875 (2) (q) of the
8statutes, any transfer from the budget stabilization fund to the general fund during
9the 2007-08 fiscal year under section 20.875 (2) (q) of the statutes, as affected by this
10act, shall occur before July 1, 2008.
AB1-ASA1, s. 9201 11Section 9201. Fiscal changes; Administration.
AB1-ASA1,7,17 12(1) Transfers from general fund to appropriations to the department of
13transportation.
If moneys were transferred to the general fund from appropriations
14to the department of transportation during the 2007-08 fiscal year, pursuant to 2007
15Wisconsin Act 20
, section 9201 (1c) (a), the secretary of administration shall transfer
16from the general fund to these appropriations the amount that was transferred from
17these appropriations before the effective date of this subsection.
AB1-ASA1,7,18 18(2) Lapse of any unencumbered moneys in appropriation accounts and funds.
AB1-ASA1,8,319 (a) 1. Notwithstanding sections 20.001 (3) (a) to (c) of the statutes, but subject
20to paragraph (b), the secretary of administration shall lapse to the general fund from
21the unencumbered balances of general purpose revenue appropriations to executive
22branch state agencies, other than sum sufficient appropriations not specified in
23subdivision 2. and appropriations of federal revenues, an amount equal to
24$250,000,000 during the 2007-09 fiscal biennium and $250,000,000 during the
252009-11 fiscal biennium. The amounts lapsed under this subdivision shall be in

1addition to the amounts lapsed or transferred under 2007 Wisconsin Act 20, section
29201 (1c) (a) to (c). This subdivision shall not apply to an appropriation to the
3department of public instruction under section 20.255 (2) (ac) of the statutes.
AB1-ASA1,8,10 42. For the purpose of making the lapses required under subdivision 1. for
5executive branch state agencies, the secretary of administration may reduce the
6general purpose revenue amounts allocated for "Compensation Reserves" for each
7fiscal biennia in the summary under section 20.005 (1) of the statutes, as affected by
8the acts of 2007. If the secretary of administration reduces any of these amounts, the
9secretary shall specify from which appropriation under section 20.865 (1) (c), (ci), or
10(d) of the statutes the reductions are to be allocated.
AB1-ASA1,8,1411 (b) The secretary of administration may not lapse moneys under paragraph (a)
12if the lapse would violate a condition imposed by the federal government on the
13expenditure of the moneys or if the lapse would violate the federal or state
14constitution.
AB1-ASA1, s. 9237 15Section 9237. Fiscal changes; Public Instruction.
AB1-ASA1,8,1916 (1) Equalization aid shift. In the schedule under section 20.005 (3) of the
17statutes for the appropriation to the department of public instruction under section
1820.255 (2) (ac) of the statutes, as affected by the acts of 2007, the dollar amount is
19decreased by $125,000,000 for fiscal year 2007-08.
AB1-ASA1, s. 9255 20Section 9255. Fiscal changes; other.
AB1-ASA1,8,2421 (1) Budget stabilization fund. In the schedule under section 20.005 (3) of the
22statutes for the appropriation under section 20.875 (2) (q) of the statutes, as affected
23by the acts of 2007, the dollar amount is increased by $55,000,000 for fiscal year
242007-08 for the purpose for which the appropriation is made.
AB1-ASA1, s. 9400
1Section 9400. Effective dates. Except as otherwise provided in Sections
29401 to 9455 of this act, this act takes effect on the day after publication.
AB1-ASA1, s. 9437 3Section 9437. Effective dates; Public Instruction.
AB1-ASA1,9,54 (1) The treatment of section 13.101 (6) (a) of the statutes takes effect on July
51, 2008.
AB1-ASA1,9,66 (End)
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