LRB-5168/1
RAC:kmg:ks
1995 - 1996 LEGISLATURE
February 21, 1996 - Introduced by Representatives Plombon, Springer, Robson,
Huber, Cullen, Schneider, Kunicki, Gronemus, Bock, Baldus, Krug,
Notestein, R. Young, Riley, Reynolds, Turner, Black, R. Potter, Bell and
Meyer. Referred to Committee on Education.
AB915,1,6
1An Act to repeal 121.07 (6) (am), 121.07 (6) (dg), 121.07 (6) (dr), 121.07 (7) (bm)
2and 121.07 (10) (d);
to amend 121.07 (6) (e), 121.07 (7) (c), 121.07 (7) (d), 121.07
3(7) (e), 121.07 (8), 121.07 (10) (a), 121.08 (2) and 121.23 (2) (intro.); and
to
4repeal and recreate 73.03 (46), 121.07 (6) (b), 121.07 (6) (d), 121.07 (7) (a),
5121.07 (7) (b) and 121.08 (1) of the statutes;
relating to: calculation of school
6aid under the state school aid formula.
Analysis by the Legislative Reference Bureau
Under the current state school aid formula, the guaranteed valuation is the
amount of property tax base support that the state guarantees to each pupil. The
current formula has 2 levels of state support, a primary guaranteed valuation and
a secondary guaranteed valuation. The secondary guaranteed tax base applies to
costs above a certain level. Because the secondary guarantee is lower than the main,
primary guarantee, it generates less state aid on the costs to which it applies. The
dividing point between use of the primary and secondary guarantees is called the
primary ceiling cost per member. Currently, the primary ceiling cost per member is
set annually at the previous school year's ceiling increased by the percentage change
in the consumer price index (CPI).
Beginning in the 1996-97 school year, a tertiary level of state support is added
to the calculation of a school district's portion of school aid under the school aid
formula. The primary ceiling cost per member becomes $1,000. In the 1996-97
school year, the secondary ceiling cost per member is the 1995-96 primary ceiling
cost per member increased by the percentage change in the CPI. Thereafter, the
secondary ceiling cost per member is the secondary ceiling cost per member in the
previous school year increased by the percentage change in the CPI.
This bill eliminates the tertiary level of state support, thus maintaining the
current 2-level school aid formula.
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:
AB915,2,73
73.03
(46) In each school year, to determine the rate for determining the
4primary ceiling cost per member under s. 121.07 (6) (b). The rate for any school year
5is the average percentage change in the consumer price index for all urban
6consumers, U.S. city average, for the calendar year ending on the 2nd preceding
7December 31, as computed by the federal department of labor.
AB915,2,1512
121.07
(6) (b) The "primary ceiling cost per member" shall be the amount
13determined by multiplying the primary ceiling cost per member in the previous
14school year by the rate determined under s. 73.03 (46) and adding the result to the
15primary ceiling cost per member in the previous school year.
AB915,2,1918
121.07
(6) (d) The "secondary shared cost" is that portion of a district's shared
19cost which is not included in the primary shared cost.
AB915,3,85
121.07
(6) (e) For a school district created by a consolidation under s. 117.08
6or 117.09, in the school year in which the consolidation takes effect and in each of the
7subsequent 4 school years, the
amounts amount under
pars. par. (b)
and (d) shall be
8multiplied by 1.1 and rounded to the next
lowest
lower dollar.
AB915,3,1511
121.07
(7) (a) The "primary guaranteed valuation per member" is an amount,
12rounded to the next lower dollar, that, after subtraction of payments under ss.
13121.09, 121.105, 121.85 (6) (b) 2. and 3. and (c) and 121.86, fully distributes the sum
14of the amount remaining in the appropriation under s. 20.255 (2) (ac) for payments
15under ss. 121.08 and 121.85 (6) (a) and (g).
AB915,3,2118
121.07
(7) (b) The "secondary guaranteed valuation per member" shall be an
19amount rounded to the next lower dollar determined by multiplying the equalized
20valuation of the state by 1.06 and dividing the result obtained by the state total
21membership.
AB915,4,2
1121.07
(7) (c) For districts operating only high school grades, the amounts in
2pars. (a)
to (bm) and (b) shall be multiplied by 3 and rounded to the next lower dollar.
AB915,4,75
121.07
(7) (d) For districts operating only elementary grades, the amounts in
6pars. (a)
to (bm) and (b) shall be multiplied by 1.5 and rounded to the next lower
7dollar.
AB915,4,1310
121.07
(7) (e) For a school district created by a consolidation under s. 117.08
11or 117.09, in the school year in which the consolidation takes effect and in each of the
12subsequent 4 school years, the amounts under pars. (a)
to (bm) and (b) shall be
13multiplied by 1.1 and rounded to the next lower dollar.
AB915,4,1816
121.07
(8) Guaranteed valuation. A school district's primary
, and secondary
17and tertiary guaranteed valuations are determined by multiplying the amounts in
18sub. (7) by the district's membership.
AB915,4,2221
121.07
(10) (a) The "required levy rate" is the sum of the rates derived in pars.
22(b)
to (d) and (c).
AB915,5,73
121.08
(1) The state shall pay to the school district a sum equal to the amount
4by which the primary guaranteed valuation exceeds the school district equalized
5valuation, multiplied by the primary required levy rate, and a sum equal to the
6amount by which the secondary guaranteed valuation exceeds the school district
7equalized valuation, multiplied by the secondary required levy rate.
AB915,5,1510
121.08
(2) The aid computed under sub. (1) shall be reduced by the
sum of the 11amount by which the school district equalized valuation exceeds the secondary
12guaranteed valuation, multiplied by the secondary required levy rate
, and the
13amount by which the school district equalized valuation exceeds the tertiary
14guaranteed valuation, multiplied by the tertiary required levy rate. In no case may
15the aid under this section be less than
the amount under sub. (1) (a) zero.
AB915,5,2218
121.23
(2) (intro.) If a school district holds less than 180 days of school as the
19result of a strike by school district employes, for the purposes of computing general
20aid, the state superintendent shall compute the school district's primary
and
21secondary ceiling
costs cost per member in accordance with the procedure specified
22in pars. (a) to (e). In making the calculation, the state superintendent shall:
AB915,6,2
1(1) This act first applies to the payment of state school aid in the 1996-97 school
2year.
