LRB-3781/5
PG:kjf:pg
2005 - 2006 LEGISLATURE
December 21, 2005 - Introduced by Senators Olsen, Darling, Harsdorf,
Grothman, Schultz, Zien
and Roessler, cosponsored by Representatives
Towns, Hines, Kestell, Davis, Nass, Hahn, Ott, Petrowski, Albers,
Pridemore, Lehman
and Wood. Referred to Committee on Education.
SB482,1,6 1An Act to renumber and amend 121.105 (2) (am); to amend 121.905 (3) (a) 1.,
2121.905 (3) (b) 1., 121.91 (2m) (r) 2. b., 121.91 (4) (f) 1. and 121.91 (4) (f) 2.; and
3to create 121.105 (2) (am) 2., 121.905 (3) (a) 3., 121.905 (3) (b) 3., 121.91 (2m)
4(s) and 121.91 (4) (f) 1m. of the statutes; relating to: the calculation of a school
5district's special adjustment aid and revenue limit when territory is detached
6from one or more school districts to create a new school district.
Analysis by the Legislative Reference Bureau
Under current law, a school district is guaranteed to receive in each school year
at least 85 percent of the amount of state aid that it received in the previous school
year. The additional aid is called special adjustment aid. For a school district from
which territory is detached to create a new school district, this bill revises the method
for calculating special adjustment aid in the second and third school years after the
reorganization takes effect using the ratio of retained pupils.
Current law increases a school district's revenue limit, if the average
enrollment of the school district in the current and two preceding school years is less
than the average enrollment in the three previous school years, by the additional
amount that would have been calculated had the decline in enrollment been 25
percent of what it was. This bill also revises the method for calculating the revenue
limit of a school district affected by a reorganization described above for the three
years immediately following the effective date of the reorganization.

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:
SB482, s. 1 1Section 1. 121.105 (2) (am) of the statutes is renumbered 121.105 (2) (am) 1.
2and amended to read:
SB482,2,93 121.105 (2) (am) 1. If Except as provided in subd. 2., if a school district would
4receive less in state aid in the current school year before any adjustment is made
5under s. 121.15 (4) (b) than an amount equal to 85% of the sum amount of the state
6aid that it received in the previous school year and the adjustment, if any, made, as
7adjusted
under s. 121.15 (4) (b) in the current school year, its state aid for the current
8school year shall be increased to an amount equal to 85% of the state aid received in
9the previous school year.
SB482, s. 2 10Section 2. 121.105 (2) (am) 2. of the statutes is created to read:
SB482,2,1711 121.105 (2) (am) 2. If a school district from which territory was detached to
12create a new school district under s. 117.105 would receive in state aid in the school
13year beginning on the first July 1 following the effective date of the reorganization
14less than 85 percent of the amount determined as follows, its state aid in the school
15year beginning on the first July 1 following the effective date of the reorganization
16shall be increased to an amount equal to 85 percent of the amount determined as
17follows:
SB482,2,1918 a. Divide the school district's membership in the preceding school year by the
19school district's membership in the 2nd preceding school year.
SB482,3,3
1b. Multiply the amount of state aid received by the school district in the
2preceding school year, as adjusted under s. 121.15 (4) (b) in the current school year,
3by the quotient under subd. 2. a.
SB482, s. 3 4Section 3. 121.905 (3) (a) 1. of the statutes is amended to read:
SB482,3,125 121.905 (3) (a) 1. Except as provided under subd. subds. 2. and 3., calculate the
6sum of the amount of state aid received in the previous school year and property taxes
7levied for the previous school year, excluding property taxes levied for the purpose
8of s. 120.13 (19) and excluding funds described under s. 121.91 (4) (c), and the costs
9of the county children with disabilities education board program, as defined in s.
10121.135 (2) (a) 2., for pupils who were school district residents and solely enrolled in
11a special education program provided by a county children with disabilities
12education board in the previous school year.
SB482, s. 4 13Section 4. 121.905 (3) (a) 3. of the statutes is created to read:
SB482,3,1614 121.905 (3) (a) 3. For a school district from which territory was detached to
15create a new school district under s. 117.105, for the school year beginning with the
16effective date of the reorganization, perform the following calculations:
SB482,3,1817 a. Calculate the sum under subd. 1. for each of the school districts from which
18territory was detached to create the new school district.
SB482,3,2019 b. For each of those school districts, divide the result in subd. 3. a. by the
20number of pupils enrolled in that school district in the previous school year.
SB482,3,2321 c. For each of those school districts, multiply the result in subd. 3. b. by the
22number of pupils enrolled in that school district in the previous school year who did
23not reside in territory that was detached to create the new school district.
SB482, s. 5 24Section 5. 121.905 (3) (b) 1. of the statutes is amended to read:
SB482,4,5
1121.905 (3) (b) 1. Except as provided under subd. subds. 2. and 3., divide the
2result in par. (a) 1. by the sum of the average of the number of pupils enrolled in the
33 previous school years and the number of pupils enrolled who were school district
4residents and solely enrolled in a special education program provided by a county
5children with disabilities education board program in the previous school year.
SB482, s. 6 6Section 6. 121.905 (3) (b) 3. of the statutes is created to read:
SB482,4,167 121.905 (3) (b) 3. For a school district from which territory was detached to
8create a new school district under s. 117.105, for the school year beginning with the
9effective date of the reorganization, divide the result in par. (a) 3. by the number of
10pupils who in the previous school year were enrolled in the school district and who
11did not reside in territory that was detached to create the new school district; for the
12school year beginning on the first July 1 following the effective date of the
13reorganization, divide the result in par. (a) 3. by the number of pupils enrolled in the
14previous school year; and for the school year beginning on the 2nd July 1 following
15the effective date of the reorganization, divide the result in par. (a) 3. by the average
16of the number of pupils enrolled in the 2 previous school years.
SB482, s. 7 17Section 7. 121.91 (2m) (r) 2. b. of the statutes is amended to read:
SB482,4,2218 121.91 (2m) (r) 2. b. For the school year beginning on the first July 1 following
19the effective date of the reorganization the average of the number of pupils in the
20current and the previous school years shall be used under pars. (c) 4., (d) 4. and par.
21(e) 3. 4. instead of the average of the number of pupils in the current and the 2
22preceding school years.
SB482, s. 8 23Section 8. 121.91 (2m) (s) of the statutes is created to read:
SB482,5,324 121.91 (2m) (s) 1. Notwithstanding par. (e), if territory is detached from a
25school district to create a new school district under s. 117.105, the revenue limit

1under this section of the school district from which territory is detached for the school
2year beginning with the effective date of the reorganization shall be determined as
3follows except as provided in subs. (3) and (4):
SB482,5,64 a. Divide the result under s. 121.905 (3) (a) 3. by the number of pupils who in
5the previous school year were enrolled in the school district and who did not reside
6in territory that was detached to create the new school district.
SB482,5,107 b. Add an amount equal to the amount of revenue increase per pupil allowed
8under this subsection for the previous school year multiplied by the sum of 1.0 plus
9the allowable rate of increase under s. 73.0305 expressed as a decimal to the result
10under subd. 1. a.
SB482,5,1411 c. Multiply the result under subd. 1. b. by the number of pupils who in the
12previous school year were enrolled in the school district and who did not reside in the
13detached territory, or by the number of pupils enrolled in the school district in the
14current school year, whichever is greater.
SB482,5,1815 2. If territory is detached from a school district to create a new school district
16under s. 117.105, the following adjustments to the calculations under par. (e) apply
17to the school district from which territory is detached for the 2 school years beginning
18on the July 1 following the effective date of the reorganization:
SB482,5,2519 a. For the school year beginning on the first July 1 following the effective date
20of the reorganization, the number of pupils in the previous school year shall be used
21under par. (e) 1. instead of the average of the number of pupils in the 3 previous school
22years; and for the school year beginning on the 2nd July 1 following the effective date
23of the reorganization, the average of the number of pupils in the 2 previous school
24years shall be used under par. (e) 1. instead of the average of the number of pupils
25in the 3 previous school years.
SB482,6,4
1b. For the school year beginning on the first July 1 following the effective date
2of the reorganization the average of the number of pupils in the current and the
3previous school year shall be used under par. (e) 4. instead of the average of the
4number of pupils in the current and the 2 preceding school years.
SB482, s. 9 5Section 9. 121.91 (4) (f) 1. of the statutes is amended to read:
SB482,6,116 121.91 (4) (f) 1. For Except as provided in subd. 1m., for the 1999-2000 school
7year or any school year thereafter, if the average of the number of pupils enrolled in
8the current and the 2 preceding school years is less than the average of the number
9of pupils enrolled in the 3 previous school years, the limit otherwise applicable under
10sub. (2m) (e) is increased by the additional amount that would have been calculated
11had the decline in average enrollment been 25% of what it was.
SB482, s. 10 12Section 10. 121.91 (4) (f) 1m. of the statutes is created to read:
SB482,6,1513 121.91 (4) (f) 1m. If territory is detached from a school district to create a new
14school district under s. 117.105, all of the following apply to the school district from
15which territory was detached and to the new school district:
SB482,6,1716 a. In the school year in which the school district reorganization takes effect,
17subd. 1. does not apply.
SB482,6,2318 b. For the school year beginning on the first July 1 following the effective date
19of the school district reorganization, if the number of pupils enrolled in that school
20year is less than the number of pupils enrolled in the previous school year, the limit
21otherwise applicable under sub. (2m) (e) is increased by the additional amount that
22would have been calculated had the decline in enrollment been 25 percent of what
23it was.
SB482,7,424 c. For the school year beginning on the 2nd July 1 following the effective date
25of the school district reorganization, if the average of the number of pupils enrolled

1in that school year and the previous school year is less than the average of the
2number of pupils enrolled in the 2 previous school years, the limit otherwise
3applicable under sub. (2m) (e) is increased by the additional amount that would have
4been calculated had the decline in average enrollment been 25 percent of what it was.
SB482, s. 11 5Section 11. 121.91 (4) (f) 2. of the statutes is amended to read:
SB482,7,86 121.91 (4) (f) 2. Any additional revenue received by a school district as a result
7of subd. subds. 1. and 1m. shall not be included in the base for determining the school
8district's limit under sub. (2m) (e) for the following school year.
SB482, s. 12 9Section 12. Initial applicability.
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