LRB-2324/1
PG:kaf:md
1997 - 1998 LEGISLATURE
March 6, 1997 - Introduced by Representatives Otte, Baumgart, R. Young, Plale
and J. Lehman, cosponsored by Senator C. Potter. Referred to Committee on
Ways and Means.
AB164,1,5 1An Act to repeal 67.05 (6a) (b) 1. to 3. and 67.12 (12) (e) 2g. a. to c.; to renumber
2and amend
67.05 (6a) (b) (intro.) and 67.12 (12) (e) 2g. (intro.); to amend
3121.07 (6) (a) (intro.); and to create 121.91 (4) (c) 3. of the statutes; relating
4to:
school district bonds, promissory notes and revenue limits and excluding
5certain debt service from a school district's shared cost.
Analysis by the Legislative Reference Bureau
Under current law, if a school board or the electors at a school district meeting
adopt an initial resolution to raise money by issuing a bond and the bond will cause
the aggregate outstanding indebtedness of the school district incurred without a
referendum since August 9, 1989, to exceed $1,000,000 or an amount determined by
multiplying the school district's enrollment by 1.5% of the statewide average
property tax base per pupil, whichever is less, the school board must do one of the
following:
1. Direct the school district clerk to call a special election to submit the initial
resolution to the electors at a binding referendum.
2. Specify in the initial resolution the date, time and place for a public hearing
on the resolution. The school board must also specify whether the public hearing will
be for informational purposes only or whether the electors at the public hearing will
have an opportunity to vote on whether a binding referendum will be held.
If the school board decides to hold a public hearing for informational purposes
only, the resolution is effective unless a sufficient number of electors files a petition
for a binding referendum on the resolution within 30 days of the public hearing.

If the school board decides to hold a public hearing at which the electors present
may vote on whether a binding referendum will be held, one of the following will
occur:
1. A majority of the electors present and voting at the hearing determine that
a referendum will be held. If this occurs, the school board must direct the school
district clerk to hold the referendum.
2. A majority of the electors present and voting at the hearing determine that
no referendum will be held. If this occurs, the resolution is effective unless a
sufficient number of electors files a petition for a binding referendum on the
resolution within 30 days of the public hearing.
If a school board adopts an initial resolution to issue a promissory note, a
referendum will be held only if the amount of money borrowed will cause the
aggregate outstanding indebtedness of the school district incurred without a
referendum since August 9, 1989, to exceed $1,000,000 or an amount determined by
multiplying the school district's enrollment by 1.5% of the statewide average
property tax base per pupil, whichever is less, and a petition is filed and signed by
a sufficient number of school district electors.
This bill provides that the above provisions apply only if the bond or promissory
note will cause the aggregate amount of outstanding indebtedness of the school
district incurred without a referendum since August 9, 1989, to exceed $250,000 or
the amount determined by multiplying the school district's enrollment by $350,
whichever is greater.
The bill also increases a school district's revenue limit by the amount needed
to pay debt service on a bond or promissory note authorized on or after the effective
date of this bill by school board resolution if the issuance of the bond or note was not
subject to a referendum as a result of the new provision described above.
Finally, this bill excludes from a school district's shared cost (costs that are
aidable through the general aid formula) debt service on debt that was not subject
to a referendum as a result of the new provision described above.
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:
AB164, s. 1 1Section 1. 67.05 (6a) (b) (intro.) of the statutes is renumbered 67.05 (6a) (b)
2and amended to read:
AB164,3,33 67.05 (6a) (b) Paragraph (a) 2. applies only if the amount of money to be raised
4by the bond issue will cause the aggregate amount of outstanding indebtedness of the
5school district incurred without a referendum since August 9, 1989, excluding

1amounts specified in par. (bm), to exceed $1,000,000 $250,000 or an amount
2determined as follows by multiplying the school district membership, as defined in
3s. 121.004 (5), by $350
, whichever is less: greater.
AB164, s. 2 4Section 2. 67.05 (6a) (b) 1. to 3. of the statutes are repealed.
AB164, s. 3 5Section 3. 67.12 (12) (e) 2g. (intro.) of the statutes is renumbered 67.12 (12)
6(e) 2g. and amended to read:
AB164,3,127 67.12 (12) (e) 2g. Subdivision 2. applies only if the amount of money to be raised
8by the promissory note will cause the aggregate amount of outstanding indebtedness
9of the school district incurred without a referendum since August 9, 1989, excluding
10amounts specified in s. 67.05 (6a) (bm), to exceed $1,000,000 $250,000 or an amount
11determined as follows by multiplying the school district membership, as defined in
12s. 121.004 (5), by $350
, whichever is less: greater.
AB164, s. 4 13Section 4. 67.12 (12) (e) 2g. a. to c. of the statutes are repealed.
AB164, s. 5 14Section 5. 121.07 (6) (a) (intro.) of the statutes is amended to read:
AB164,3,2215 121.07 (6) (a) (intro.) "Shared cost" is the sum of the net cost of the general fund
16and the net cost of the debt service fund, except that "shared cost" excludes any costs,
17including attorney fees, incurred by a school district as a result of its participation
18in a lawsuit commenced against the state, beginning with such costs incurred in the
19fiscal year in which the lawsuit is commenced. In this paragraph, "net cost of the debt
20service fund" excludes debt service on debt that was not subject to a referendum as
21a result of s. 67.05 (6a) (b) or 67.12 (12) (e) 2g.
In this paragraph, "net cost of the debt
22service fund" includes all of the following amounts:
AB164, s. 6 23Section 6. 121.91 (4) (c) 3. of the statutes is created to read:
AB164,4,624 121.91 (4) (c) 3. Funds needed for the payment of any general obligation debt
25service, including debt service on debt issued or reissued to fund or refund

1outstanding municipal obligations, interest on outstanding municipal obligations or
2the payment of related issuance costs or redemption premiums, authorized on or
3after the effective date of this subdivision .... [revisor inserts date], by a resolution
4of the school board and secured by the full faith and credit of the school district if the
5issuance of the debt was not subject to a referendum as a result of s. 67.05 (6a) (b)
6or 67.12 (12) (e) 2g.
AB164, s. 7 7Section 7. Initial applicability.
AB164,4,98 (1) The treatment of section 121.07 (6) (a) (intro.) of the statutes first applies
9to the payment of state aid in the school year beginning after publication.
AB164,4,1210 (2) The treatment of sections 67.05 (6a) (b) (intro.) and 1. to 3. and 67.12 (12)
11(e) 2g. (intro.) and a. to c. of the statutes first applies to initial resolutions adopted
12on the effective date of this subsection.
AB164, s. 8 13Section 8. Effective date.
AB164,4,1414 (1) This act takes effect on the first July 1 after publication.
AB164,4,1515 (End)
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