LRB-2186/5
MJL:jlg:km
1999 - 2000 LEGISLATURE
December 30, 1999 - Introduced by Representatives Plouff, Musser, Bock,
Gronemus, Hasenohrl, Krug, Lassa, J. Lehman, Miller, Reynolds, Richards,
Riley, Ryba
and Sykora, cosponsored by Senators Burke, Clausing,
Erpenbach, Moen, Moore, Plache
and Schultz. Referred to Committee on
Ways and Means.
AB631,1,9 1An Act to repeal 20.255 (2) (bc), 20.835 (3) (b), 79.10 (4), 79.10 (7m) (a) 1., 79.14,
2118.153 (2) (b), 118.153 (3) (a) (intro.) and 1. and 118.153 (4) and (5); to
3renumber
79.10 (7m) (a) 2. and 118.153 (2) (a); to renumber and amend
4118.153 (3) (a) 2.; to amend 13.101 (6) (a), 41.41 (10) (b), 41.41 (10) (c) 1., 74.09
5(3) (b) 3., 79.10 (6m), 118.153 (6), 118.153 (7), 121.004 (7) (a), 121.007, 121.07
6(7) (b), 121.08 (2), 121.15 (3m) (b) and 121.15 (4); and to create 121.004 (7) (f)
7and (g), 121.05 (1) (e) and 121.15 (1m) (a) 4. of the statutes; relating to:
8eliminating the school levy tax credit, and guaranteed aid for primary costs and
9weighting children at risk for equalization aid purposes.
Analysis by the Legislative Reference Bureau
The state school aid formula is designed to equalize school district tax bases and
thus minimize the differences among the abilities of school districts to raise revenue
for educational programs. The formula establishes three guaranteed tax bases,
known as guaranteed valuations, that apply to three different levels of expenditure.
The primary guaranteed valuation applies to those costs that do not exceed the
primary ceiling cost per pupil of $1,000. The secondary guaranteed valuation applies
to per pupil costs that exceed the primary ceiling. The tertiary guaranteed valuation

applies to per pupil costs that exceed the secondary ceiling, which, in the 1998-99
school year, is $6,285 per pupil. The percentage of a school district's state-aided costs
at each level of expenditure is equal to the net guaranteed valuation (the difference
between the applicable guaranteed valuation and the equalized value of taxable
property in the school district) divided by the applicable guaranteed valuation.
Under the school aid formula, the aid generated at the primary level is reduced by
aid generated at the secondary and tertiary levels but each school district is
guaranteed aid for its primary costs.
School aid is computed using school district membership, which is the sum of
the average of pupils enrolled in the third Friday in September and the second Friday
in January of the previous school year and the number of full-time equivalent pupils
enrolled in summer school in the previous summer. With some exceptions, each pupil
is counted as 1.0 member.
This bill eliminates the guarantee of aid for primary costs for a school district
whose secondary or tertiary equalized valuation exceeds its secondary or tertiary
guaranteed valuation. The bill also counts children at risk (pupils in grades five to
twelve who are academically lagging and are also dropouts, habitual truants,
parents or adjudicated delinquents) as 1.2 members.
School districts, with some exceptions, receive 15% of the total school aid
entitlement in September, 25% in December, 25% in March and 35% in June. One
exception to this distribution schedule directs the state to distribute $75,000,000 of
aid for the current school year on the fourth Monday of July of the following school
year. This bill directs the state to make an additional delayed school aid payment
of $469,305,000 for the current school year on the fourth Monday of July of the
following school year.
Under current law, the school levy tax credit is distributed to municipalities
based on each municipality's share of statewide levies for school purposes during the
three preceding school years. Each individual taxpayer in a municipality shares in
the school levy tax credit paid to the municipality based on the taxpayer's share of
the municipality's total assessed value. This bill eliminates the school levy tax credit.
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:
AB631, s. 1 1Section 1. 13.101 (6) (a) of the statutes is amended to read:
AB631,3,152 13.101 (6) (a) As an emergency measure necessitated by decreased state
3revenues and to prevent the necessity for a state tax on general property, the
4committee may reduce any appropriation made to any board, commission,
5department, 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), (bc), (bh), (cg), (cr)
3and (q), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq)
4and (ar), 20.435 (6) (a) and (7) (da) and 20.445 (3) (a) and (dz) or for forestry purposes
5under s. 20.370 (1), or any other moneys distributed to any county, city, village, town
6or school district. Appropriations of receipts and of a sum sufficient shall for the
7purposes of this section be regarded as equivalent to the amounts expended under
8such appropriations in the prior fiscal year which ended June 30. All functions of
9said state agencies shall be continued in an efficient manner, but because of the
10uncertainties of the existing situation no public funds should be expended or
11obligations incurred unless there shall be adequate revenues to meet the
12expenditures therefor. For such reason the committee may make reductions of such
13appropriations as in its judgment will secure sound financial operations of the
14administration for said state agencies and at the same time interfere least with their
15services and activities.
AB631, s. 2 16Section 2. 20.255 (2) (bc) of the statutes, as affected by 1999 Wisconsin Act 9,
17is repealed.
AB631, s. 3 18Section 3. 20.835 (3) (b) of the statutes is repealed.
AB631, s. 4 19Section 4. 41.41 (10) (b) of the statutes is amended to read:
AB631,3,2420 41.41 (10) (b) Each year, the department shall ascertain from the clerk of each
21taxation district in which the reserve or any land acquired by the board is located the
22aggregate gross general property tax rate for the taxation district, exclusive of the
23rate that applies under s. 70.58 and without respect to the school levy tax credit
24under s. 79.10
.
AB631, s. 5 25Section 5. 41.41 (10) (c) 1. of the statutes is amended to read:
AB631,4,9
141.41 (10) (c) 1. Except as provided in par. (d), on or before each January 31,
2the department shall pay to the treasurer of each taxation district specified in par.
3(b), with respect to all land in the Kickapoo valley reserve and all land acquired by
4the board on or before January 1 of the preceding year, an amount determined by
5multiplying the estimated value of the land equated to the average level of
6assessment in the taxation district by the aggregate gross general property tax rate,
7exclusive of the rate that applies under s. 70.58 and without respect to the school levy
8tax credit under s. 79.10
, that would apply to the land in that taxation district for that
9year if it were taxable.
AB631, s. 6 10Section 6. 74.09 (3) (b) 3. of the statutes is amended to read:
AB631,4,1411 74.09 (3) (b) 3. The tax levied on the property by the school district where the
12property is located minus the credit under s. 79.10 (4) allocable to the property, for
13the previous year and the current year, and the percentage change in that net tax
14between those years.
AB631, s. 7 15Section 7. 79.10 (4) of the statutes is repealed.
AB631, s. 8 16Section 8. 79.10 (6m) of the statutes is amended to read:
AB631,5,517 79.10 (6m) Corrections of state property tax credit payments. If the
18department of administration or the department of revenue determines by October
191 of the year of any distribution under subs. (4) and sub. (5) that there was an
20overpayment or underpayment made in that year's distribution by the department
21of administration to municipalities, as determined under subs. (4) and sub. (5),
22because of an error by the department of administration, the department of revenue
23or any municipality, the overpayment or underpayment shall be corrected as
24provided in this subsection. Any overpayment shall be corrected by reducing the
25subsequent year's distribution, as determined under subs. (4) and sub. (5), by an

1amount equal to the amount of the overpayment. Any underpayment shall be
2corrected by increasing the subsequent year's distribution, as determined under
3subs. (4) and sub. (5), by an amount equal to the amount of the underpayment.
4Corrections shall be made in the distributions to all municipalities affected by the
5error. Corrections shall be without interest.
AB631, s. 9 6Section 9. 79.10 (7m) (a) 1. of the statutes is repealed.
AB631, s. 10 7Section 10. 79.10 (7m) (a) 2. of the statutes is renumbered 79.10 (7m) (a).
AB631, s. 11 8Section 11. 79.14 of the statutes is repealed.
AB631, s. 12 9Section 12. 118.153 (2) (a) of the statutes is renumbered 118.153 (2).
AB631, s. 13 10Section 13. 118.153 (2) (b) of the statutes is repealed.
AB631, s. 14 11Section 14. 118.153 (3) (a) (intro.) and 1. of the statutes are repealed.
AB631, s. 15 12Section 15. 118.153 (3) (a) 2. of the statutes is renumbered 118.153 (3) (a) and
13amended to read:
AB631,5,2414 118.153 (3) (a) Upon Every school board that has identified children at risk
15under sub. (2) shall make available for these children a program for children at risk
16and, at the
request of a pupil who is a child at risk or the pupil's parent or guardian,
17a school board described under subd. 1. shall enroll the pupil in the program for
18children at risk
. If the school board makes available more than one program for
19children at risk, the school board shall enroll the pupil in the program selected by the
20pupil's parent or guardian if the pupil meets the prerequisites for that program. If
21there is no space in that program for the pupil, the school board of the school district
22operating under ch. 119 shall place the pupil's name on a waiting list for that program
23and offer the pupil an alternative program for children at risk until space in the
24requested program becomes available.
AB631, s. 16 25Section 16. 118.153 (4) and (5) of the statutes are repealed.
AB631, s. 17
1Section 17. 118.153 (6) of the statutes is amended to read:
AB631,6,32 118.153 (6) Biennially, the legislative audit bureau shall audit school district
3eligibility, performance criteria and state aid payments under this section.
AB631, s. 18 4Section 18. 118.153 (7) of the statutes is amended to read:
AB631,6,85 118.153 (7) The state superintendent shall promulgate rules to implement and
6administer this section. The rules shall not be overly restrictive in defining approved
7programs and shall not serve to exclude programs that have demonstrated success
8in meeting the needs of children at risk.
AB631, s. 19 9Section 19. 121.004 (7) (a) of the statutes is amended to read:
AB631,6,1410 121.004 (7) (a) "Pupils enrolled" is the total number of pupils, as expressed by
11official enrollments, in all schools of the school district, except as provided in pars.
12(b) to (e) (g). If such total contains a fraction, it shall be expressed as the nearest
13whole number. The same method shall be used in computing the number of pupils
14enrolled for resident pupils, nonresident pupils or both.
AB631, s. 20 15Section 20. 121.004 (7) (f) and (g) of the statutes are created to read:
AB631,6,2016 121.004 (7) (f) A pupil who is eligible for a free or reduced-price lunch under
1742 USC 1758 (b) shall be counted as 1.2 pupils, except that a pupil who is also enrolled
18in a kindergarten program or a preschool program under subch. V of ch. 115 shall be
19multiplied under this paragraph by a number equal to the result obtained by
20multiplying 1.2 by the appropriate fraction under par. (c), (cm) or (d).
AB631,6,2221 (g) A pupil who is a child at risk, as defined under s. 118.153 (1) (a), shall be
22counted as 1.2 pupils.
AB631, s. 21 23Section 21. 121.007 of the statutes is amended to read:
AB631,7,4 24121.007 Use of state aid; exemption from execution. All moneys paid to
25a school district under s. 20.255 (2) (ac), (bc), (cg), (cr) and (q) shall be used by the

1school district solely for the purposes for which paid. Such moneys are exempt from
2execution, attachment, garnishment or other process in favor of creditors, except as
3to claims for salaries or wages of teachers and other school employes and as to claims
4for school materials, supplies, fuel and current repairs.
AB631, s. 22 5Section 22. 121.05 (1) (e) of the statutes is created to read:
AB631,7,76 121.05 (1) (e) The use to which additional aid for pupils counted as 1.2 pupils
7under s. 121.004 (7) (f) and (g) was put in the previous school year.
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