SB231,9,64 6. `Financial reports.' The authority has agreed to provide to the department
5of administration all financial reports of the authority and all regular monthly
6statements of any trustee of the bonds on a direct and ongoing basis.
SB231,9,137 (b) Payment of funds into a special debt service reserve fund. The authority
8shall pay into any special debt service reserve fund of the authority any moneys
9appropriated and made available by the state for the purposes of the special debt
10service reserve fund, any proceeds of a sale of bonds described under sub. (5) (a) 4.
11d. to the extent provided in the bond resolution authorizing the issuance of the bonds
12and any other moneys that are made available to the authority for the purpose of the
13special debt service reserve fund from any other source.
SB231,9,2514 (c) Use of moneys in the special debt service reserve fund. All moneys held in
15any special debt service reserve fund of the authority, except as otherwise specifically
16provided, shall be used solely for the payment of the principal of bonds secured in
17whole or in part by the special debt service reserve fund, the making of sinking fund
18payments with respect to these bonds, the purchase or redemption of these bonds,
19the payment of interest on these bonds or the payment of any redemption premium
20required to be paid when these bonds are redeemed prior to maturity. If moneys in
21a special debt service reserve fund at any time are less than the special debt service
22reserve fund requirement under par. (e) for the special debt service reserve fund, the
23authority may not use these moneys for any optional purchase or optional
24redemption of the bonds. Any income or interest earned by, or increment to, any
25special debt service reserve fund due to the investment of moneys in the special debt

1service reserve fund may be transferred by the authority to other funds or accounts
2of the authority relating to the bonds to the extent that the transfer does not reduce
3the amount of the special debt service reserve fund below the special debt service
4reserve fund requirement under par. (e) for the special debt service reserve fund.
SB231,10,125 (d) Limitation on bonds secured by a special debt service reserve fund. The
6authority shall accumulate in each special debt service reserve fund an amount equal
7to the special debt service reserve fund requirement under par. (e) for the special debt
8service reserve fund. The authority may not at any time issue bonds secured in whole
9or in part by a special debt service reserve fund if upon the issuance of these bonds
10the amount in the special debt service reserve fund will be less than the special debt
11service reserve fund requirement under par. (e) for the special debt service reserve
12fund.
SB231,11,313 (e) Special debt service reserve fund requirement. The special debt service
14reserve fund requirement for a special debt service reserve fund, as of any particular
15date of computation, is equal to an amount of money, as provided in the bond
16resolution authorizing the bonds with respect to which the special debt service
17reserve fund is established, that may not exceed the maximum annual debt service
18on the bonds of the authority for that fiscal year or any future fiscal year of the
19authority secured in whole or in part by that special debt service reserve fund. In
20computing the annual debt service for any fiscal year, bonds deemed to have been
21paid in accordance with the defeasance provisions of the bond resolution authorizing
22the issuance of the bonds shall not be included in bonds outstanding on such date of
23computation. The annual debt service for any fiscal year is the amount of money
24equal to the aggregate of all of the following calculated on the assumption that the
25bonds will, after the date of computation, cease to be outstanding by reason, but only

1by reason, of the payment of bonds when due, and the payment when due, and
2application in accordance with the bond resolution authorizing those bonds, of all of
3the sinking fund payments payable at or after the date of computation:
SB231,11,64 1. All interest payable during the fiscal year on all bonds that are secured in
5whole or in part by the special debt service reserve fund and that are outstanding on
6the date of computation.
SB231,11,97 2. The principal amount of all of the bonds that are secured in whole or in part
8by the special debt service reserve fund, are outstanding on the date of computation
9and mature during the fiscal year.
SB231,11,1310 3. All amounts specified in bond resolutions of the authority authorizing any
11of the bonds that are secured in whole or in part by the special debt service reserve
12fund to be payable during the fiscal year as a sinking fund payment with respect to
13any of the bonds that mature after the fiscal year.
SB231,11,1714 (f) Valuation of securities. In computing the amount of a special debt service
15reserve fund for the purposes of this subsection, securities in which all or a portion
16of the special debt service reserve fund is invested shall be valued at par, or, if
17purchased at less than par, at their cost to the authority.
SB231,12,618 (g) State moral obligation pledge. If at any time of valuation the special debt
19service reserve fund requirement under par. (e) for a special debt service reserve fund
20exceeds the amount of moneys in the special debt service reserve fund, the authority
21shall certify to the secretary of administration, the governor and the joint committee
22on finance the amount necessary to restore the special debt service reserve fund to
23an amount equal to the special debt service reserve fund requirement under par. (e)
24for the special debt service reserve fund. If this certification is received by the
25secretary of administration in an even-numbered year prior to the completion of the

1budget compilation under s. 16.43, the secretary shall include the certified amount
2in the budget compilation. In any case, the joint committee on finance shall introduce
3in either house, in bill form, an appropriation of the amount so certified to the
4appropriate special debt service reserve fund of the authority. Recognizing its moral
5obligation to do so, the legislature hereby expresses its expectation and aspiration
6that, if ever called upon to do so, it shall make this appropriation.
SB231, s. 9 7Section 9. 73.0305 of the statutes is amended to read:
SB231,12,14 873.0305 Revenue limits calculations. The department of revenue shall
9annually determine and certify to the state superintendent of public instruction, no
10later than the 4th Monday in June, the allowable rate of increase for the limit
11imposed
under s. 121.85 (6) (ar) and subch. VII of ch. 121. For that limit, the
12allowable rate of increase is the percentage change in the consumer price index for
13all urban consumers, U.S. city average, between the preceding March 31 and the 2nd
14preceding March 31, as computed by the federal department of labor.
SB231, s. 10 15Section 10. 119.24 of the statutes is amended to read:
SB231,13,2 16119.24 Admission of pupils. Each school under the jurisdiction of the board
17shall be open to pupils residing within the attendance district established for that
18school under s. 119.16 (2).
A pupil residing in any such district may attend a school
19in another an attendance district other than the one in which he or she resides with
20the written permission of the superintendent of schools. Beginning in the 2000-01
21school year, the board shall provide spaces in each school for pupils who reside
22outside the attendance district for the school, but shall fill any unused spaces with
23pupils who reside in the attendance district. A pupil who attends a school may
24continue to attend that school until he or she graduates from the school and each

1sibling of that pupil shall be given priority over other pupils in the process of
2admission for that school.
SB231, s. 11 3Section 11. 119.71 (2) of the statutes is repealed.
SB231, s. 12 4Section 12. 119.71 (3) of the statutes is amended to read:
SB231,13,105 119.71 (3) (a) The Annually, the board shall use the funds received under sub.
6(2)
spend at least $5,090,000 to expand its half-day 5-year-old kindergarten
7program to a full-day program, as provided under par. (b), and shall enroll in the
8expanded program only pupils who meet the income eligibility standards for a free
9lunch under 42 USC 1758 (b). The board shall select pupils for the expanded program
10based on the order in which the pupils register for the program.
SB231,13,1711 (b) The board shall use the funds received specified under sub. (2) par. (a) to pay
12the costs of teachers, aides and other support staff, transportation of staff to pupils'
13homes, in-service programs, parental involvement programs and instructional
14materials. The board may not use the funds to supplant or replace funding otherwise
15available for full-day 5-year-old kindergarten or
to provide facilities to house the
16program or to pay pupil transportation or indirect administrative costs associated
17with the program.
SB231, s. 13 18Section 13. 119.72 (5) of the statutes is amended to read:
SB231,13,2119 119.72 (5) From the appropriation under s. 20.255 (2) (ec) (kp), the state
20superintendent shall pay to the board the amount specified in the spending plan
21under s. 119.80 for the program under this section in each school year.
SB231, s. 14 22Section 14. 119.74 (intro.) of the statutes is amended to read:
SB231,14,2 23119.74 Extended-day elementary grade, 4-year-old kindergarten and
24alcohol and other drug abuse programs.
(intro.) From the appropriation under
25s. 20.255 (2) (ec), the state superintendent shall pay to the
The board the amounts

1specified in the spending plan under s. 119.80
shall spend at least $430,000 for the
2following programs in each school year:
SB231, s. 15 3Section 15. 119.75 (2) (a) of the statutes is repealed.
SB231, s. 16 4Section 16. 119.75 (2) (b) of the statutes is renumbered 119.75 (2) and
5amended to read:
SB231,14,136 119.75 (2) The Annually, the board shall use the funds received under par. (a)
7spend at least $1,070,000 to pay the costs of teachers, aides and other support staff,
8transportation of staff to pupils' homes, in-service programs, parental involvement
9programs and instructional materials related to the programs under sub. (1). The
10board may not use the funds to supplant or replace funding otherwise available for
11first grade programs or
to provide facilities to house the programs under sub. (1) or
12to pay pupil transportation or indirect administrative costs associated with the
13programs under sub. (1).
SB231, s. 17 14Section 17. 119.78 (1) of the statutes is renumbered 119.78.
SB231, s. 18 15Section 18. 119.78 (2) of the statutes is repealed.
SB231, s. 19 16Section 19. 119.80 (1) of the statutes is amended to read:
SB231,14,1917 119.80 (1) The board shall submit to the governor a proposal for the
18expenditure of the funds in the appropriation under s. 20.255 (2) (ec) (kp) in each
19school year.
SB231, s. 20 20Section 20. 119.80 (1m) of the statutes is amended to read:
SB231,15,221 119.80 (1m) Annually by June 1, the governor shall submit to the joint
22committee on finance and to the appropriate standing committees of the legislature
23under s. 13.172 (3) a proposal for the expenditure of the funds in the appropriation
24under s. 20.255 (2) (ec) (kp) in the following school year. By June 15, each such

1standing committee may submit written recommendations on the proposal to the
2joint committee on finance.
SB231, s. 21 3Section 21. 119.80 (4) of the statutes is created to read:
SB231,15,64 119.80 (4) The department may not distribute any funds in the appropriation
5under s. 20.255 (2) (kp) in any fiscal year until the spending plan for that fiscal year
6has been approved.
SB231, s. 22 7Section 22. 119.82 (3) of the statutes is amended to read:
SB231,15,108 119.82 (3) From the appropriation under s. 20.255 (2) (ec) (kp), the state
9superintendent shall pay to the board the amount specified in the spending plan
10under s. 119.80 in each school year for the programs under sub. (1).
SB231, s. 23 11Section 23. 121.004 (7) (a) (intro.) of the statutes is amended to read:
SB231,15,1612 121.004 (7) (a) (intro.) "Pupils enrolled" is the total number of pupils, as
13expressed by official enrollments, in all schools of the school district, except as
14provided in pars. (b) to (e) (f). If such total contains a fraction, it shall be expressed
15as the nearest whole number. The same method shall be used in computing the
16number of pupils enrolled for resident pupils, nonresident pupils or both.
SB231, s. 24 17Section 24. 121.004 (7) (f) of the statutes is created to read:
SB231,15,2118 121.004 (7) (f) A pupil who transfers from one school district to another under
19s. 121.85 (3) (a) shall be counted by the school district in which the pupil resides as
200.5 pupil or, if appropriate, as a number equal to the result obtained by multiplying
210.5 by the appropriate fraction under under par. (c), (cm) or (d).
SB231, s. 25 22Section 25. 121.05 (1) (a) 11. of the statutes is amended to read:
SB231,15,2423 121.05 (1) (a) 11. Pupils residing in the school district but attending a public
24school in another school district under s. 118.51 or 121.85 (3) (a).
SB231, s. 26 25Section 26. 121.07 (6) (a) (intro.) of the statutes is amended to read:
SB231,16,9
1121.07 (6) (a) "Shared cost" is the sum of the net cost of the general fund and
2the net cost of the debt service fund, except that "shared cost" excludes any costs,
3including attorney fees, incurred by a school district as a result of its participation
4in a lawsuit commenced against the state, beginning with such costs incurred in the
5fiscal year in which the lawsuit is commenced and excludes the costs of transporting
6those transfer pupils for whom the school district operating under ch. 119 does not
7receive intradistrict transfer aid under s. 121.85 (6) as a result of s. 121.85 (6) (am)
.
8In this paragraph, "net cost of the debt service fund" includes all of the following
9amounts:
SB231, s. 27 10Section 27. 121.58 (5) of the statutes is amended to read:
SB231,16,1811 121.58 (5) State superintendent approval. If the state superintendent is
12satisfied that transportation or board and lodging was provided in compliance with
13law, the state superintendent shall certify to the department of administration the
14sum due the school district. The state superintendent may not certify payment of
15state aid under sub. (2) for the number of pupils calculated under s. 121.85 (6) (am).

16In case of differences concerning the character and sufficiency of the transportation
17or board and lodging, the state superintendent may determine such matter and his
18or her decision is final.
SB231, s. 28 19Section 28. 121.85 (6) (a) (intro.) of the statutes is amended to read:
SB231,16,2320 121.85 (6) (a) Intradistrict transfer. (intro.) The Except as provided under pars.
21(am) and (ar), the
school district of attendance of pupils transferring from one
22attendance area to another under subs. (3) (b) and (4) shall be entitled to an amount
23determined as follows:
SB231, s. 29 24Section 29. 121.85 (6) (a) 2. of the statutes is amended to read:
SB231,17,2
1121.85 (6) (a) 2. Multiply the number of transfer pupils, as counted for
2membership purposes under s. 121.004 (7),
by 0.25.
SB231, s. 30 3Section 30. 121.85 (6) (am) of the statutes is created to read:
SB231,17,64 121.85 (6) (am) Reduction of intradistrict transfer aid. The school district
5operating under ch. 119 may not receive aid under par. (a) for the number of pupils
6calculated as follows, if the calculation results in a positive number:
SB231,17,77 1. In the 2000-01 school year:
SB231,17,108 a. Subtract from 75% the percentage of pupils whose parents or guardians have
9provided the board of school directors with written consent to a pupil transfer to
10another attendance area.
SB231,17,1211 b. Multiply the result under subd. 1. a. by the total number of transfer pupils
12under par. (a) in the current school year.
SB231,17,1313 2. In the 2001-02 school year:
SB231,17,1614 a. Subtract from 80% the percentage of pupils whose parents or guardians have
15provided the board of school directors with written consent to a pupil transfer to
16another attendance area.
SB231,17,1817 b. Multiply the result under subd. 2. a. by the total number of transfer pupils
18under par. (a) in the current school year.
SB231,17,1919 3. In the 2002-03 school year:
SB231,17,2220 a. Subtract from 90% the percentage of pupils whose parents or guardians have
21provided the board of school directors with written consent to a pupil transfer to
22another attendance area.
SB231,17,2423 b. Multiply the result under subd. 3. a. by the total number of transfer pupils
24under par. (a) in the current school year.
SB231,17,2525 4. In the 2003-04 school year:
SB231,18,3
1a. Subtract from 95% the percentage of pupils whose parents or guardians have
2provided the board of school directors with written consent to a pupil transfer to
3another attendance area.
SB231,18,54 b. Multiply the result under subd. 4. a. by the total number of transfer pupils
5under par. (a) in the current school year.
SB231,18,86 5. In the 2004-05 school year and each school year thereafter, the number of
7pupils whose parents or guardians have not provided the board of school directors
8with written consent to a pupil transfer to another attendance area.
SB231, s. 31 9Section 31. 121.85 (6) (ar) of the statutes is created to read:
SB231,18,1110 121.85 (6) (ar) Hold harmless. 1. In the 1999-2000 school year, the department
11shall pay to the school district operating under ch. 119 the greater of the following:
SB231,18,1412 a. The amount of aid received in the 1998-99 school year under par. (a)
13multiplied by the sum of 1.0 plus the allowable rate of increase under s. 73.0305
14expressed as a decimal.
SB231,18,1515 b. The amount of aid to which the school district is entitled under par. (a).
SB231,18,1816 2. Except as provided in subd. 3., in the 2000-01 school year and in each school
17year thereafter, the department shall pay to the school district operating under ch.
18119 the greater of the following:
SB231,18,2119 a. The amount of aid received in the 1998-99 school year under par. (a),
20adjusted annually for the school years since 1998-99 by the allowable rate of increase
21under s. 73.0305 as described under subd. 1. a., less the reduction under par. (am).
SB231,18,2322 b. The amount of aid to which the school district is entitled under par. (a), less
23the reduction under par. (am).
SB231,19,224 3. a. If one or more bonds are issued under s. 66.431 (5) (a) 4., subd. 2. does not
25apply beginning in the first fiscal year following certification by the secretary of

1administration to the department that the last principal and interest payment on the
2bonds has been made.
SB231,19,43 b. If no bonds are issued under s. 66.431 (5) (a) 4. by the date specified in that
4section, subd. 2. does not apply beginning in the first fiscal year following that date.
SB231, s. 32 5Section 32. 121.85 (6) (b) 1. of the statutes is repealed.
SB231, s. 33 6Section 33. 121.85 (6) (f) of the statutes is repealed.
SB231, s. 34 7Section 34. 121.85 (6m) of the statutes is created to read:
SB231,19,168 121.85 (6m) Use of aid for debt service. The board of directors of the school
9district operating under ch. 119 may use intradistrict transfer aid under sub. (6) to
10pay debt service on bonds issued under s. 66.431 (5m). If the board of school directors
11decides to use the aid to pay the debt service, it may request the department to remit
12the intradistrict transfer aid under sub. (6) to the redevelopment authority of the city
13of Milwaukee in an annual amount agreed to by the board of school directors and the
14department, and the department shall ensure that the aid remittance does not affect
15the amount determined to be received by the board of school directors as state aid
16under s. 121.08 for any other purpose.
SB231, s. 35 17Section 35. 121.85 (7) of the statutes is amended to read:
SB231,20,918 121.85 (7) Transportation. Transportation shall be provided to pupils
19transferring schools under this section if required under subch. IV. Transportation
20for a pupil attending a public school under sub. (3) (a) outside the pupil's school
21district of residence shall be provided pursuant to agreement between the school
22district of residence and the school district of attendance. If either the school district
23of residence or the school district of attendance operates a program of intradistrict
24transfers under sub. (3) (b), that school district shall be responsible for the cost of
25transportation. The school district may meet this responsibility either by

1contracting directly for provision of transportation or by reimbursing another school
2district for the cost of such a contract. Transportation for a pupil attending a public
3school under sub. (3) (b) outside his or her attendance area of residence may be
4provided by his or her school district. A school district providing transportation
5under this subsection may not claim transportation aid under subch. IV for pupils
6so transported. A school district that transports a pupil who moves outside his or her
7attendance district during the school year to the school in the pupil's former
8attendance district may use intradistrict transfer aid under sub. (6) to pay the costs
9of transporting the pupil.
SB231, s. 36 10Section 36. 121.87 (3) of the statutes is created to read:
SB231,20,1511 121.87 (3) In addition to the report under sub. (1), annually by May 1 the board
12of school directors of the school district operating under ch. 119 shall submit a report
13to the legislature under s. 13.172 (2) that specifies the number, percentage, race, sex,
14grade and attendance area of pupils transferred outside their attendance area
15without written consent under s. 121.85 (6) (am).
SB231, s. 37 16Section 37. 121.90 (1) (e) of the statutes is created to read:
SB231,20,2017 121.90 (1) (e) In determining a school district's revenue limit for the 2000-01
18school year or for any school year thereafter, the department shall calculate the
19number of pupils enrolled in each school year prior to the 2000-01 school year as the
20number was calculated in that school year under s. 121.85 (6) (b) 1. and (f), 1997 stats.
SB231, s. 38 21Section 38 . Nonstatutory provisions.
SB231,21,222 (1) Study of special transfer program. The joint legislative council is
23requested to conduct a study of the special transfer program under subchapter VI of
24chapter 121 of the statutes. If the joint legislative council conducts the study, it shall

1report its findings, conclusions and recommendations to the legislature in the
2manner provided under section 13.172 (2) of the statutes by January 1, 2000.
SB231,21,33 (2) Special transfer aid report.
SB231,21,74 (a) By May 1, 2000, the board of school directors of the school district operating
5under chapter 119 of the statutes shall submit a report to the joint committee on
6finance for its approval under paragraph (b ). The report shall include all of the
7following:
SB231,21,9 81. A strategy for achieving the percentages specified under section 121.85 (6)
9(am) of the statutes, as created by this act.
SB231,21,11 102. A facility plan specifying the neighborhood schools that are needed, the
11location of specialty schools and the estimated cost of the facility plan.
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