AB677: Bill Text

LRB-2439/5

PG/TKK/JK:kjf&jld:jf

2011 - 2012 LEGISLATURE

2011 Assembly BILL 677

March 8, 2012 - Introduced by Representatives Pope-Roberts and Clark, cosponsored by Senator Holperin. Referred to Committee on Education.

AB677,2,7 An Act to repeal 20.255 (2) (ap), 118.30 (1s) (b), 121.137 and 121.90 (2) (am) 4.; to renumber 121.58 (6); to amend 20.255 (2) (ac), 20.255 (2) (bs), 79.10 (4), 79.10 (5m), 79.14, 79.15, 118.30 (1s) (a) (intro.), 118.60 (4) (b) 2., 118.60 (4r) (a), 119.23 (4) (b) 2., 119.23 (4r) (a) 2., 119.46 (1), 121.004 (7) (a), 121.07 (6) (d), 121.08 (4) (br), 121.105 (2) (am) 1., 121.105 (2) (am) 2. (intro.), 121.15 (1m) (a) 3., 121.54 (2) (b) 4., 121.55 (3) (b), 121.58 (6) (title), 121.90 (1) (intro.), 121.905 (3) (c) 4., 121.905 (3) (c) 5., 121.91 (2m) (h) 3., 121.91 (2m) (i) 2., 121.91 (2m) (r) 1. b. and 121.91 (2m) (s) 1. b.; to repeal and recreate 121.08 (4) (b); to create 20.255 (2) (bf), 117.40 (5), 119.23 (4r) (a) 3., 121.004 (7) (g), 121.10, 121.105 (4), 121.136 (3), 121.15 (3m), 121.58 (6) (b) and 121.91 (2m) (i) 1g. and 1r. of the statutes; and to affect 2007 Wisconsin Act 20, section 9137 (3k) and 2011 Wisconsin Act 32, section 9137 (3r); relating to: counting low-income pupils for state school aid purposes; calculating the amount to be appropriated for state general school aid; aid to school districts in which parental choice programs have been established; school aid factors; special adjustment aids; hold harmless aid; school district revenue limits; payments to independent charter schools and to private schools participating in a parental choice program; grants to school districts for efficiency and consolidation feasibility studies; transportation aid to school districts; transportation of private school pupils; the first dollar and school levy property tax credits; granting rule-making authority; and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, the state supports the costs of kindergarten to 12th grade education through three different methods: unrestricted general school aid, also known as equalization aid; grants and categorical aids, which partially fund specific program costs; and the state school levy tax credit and the first dollar credit. The amount of equalization aid available to be distributed statewide each year is established in a sum certain appropriation, and equalization aid is distributed amongst school districts on the basis of the relative fiscal capacity of each school district as measured by the district's per pupil value of taxable property.

Beginning in May 2013, and annually thereafter, this bill directs the Department of Public Instruction (DPI), the Department of Administration, and the Legislative Fiscal Bureau jointly to certify to the Joint Committee on Finance the amount necessary to appropriate as general school aids in the following fiscal year to pay for the following portion of public school costs:

1. For the 2013-14 school year, 65.28 percent.

2. For the 2014-15 school year, 65.56 percent.

3. For the 2015-16 school year, 65.84 percent.

4. For the 2016-17 school year, 66.12 percent.

5. For the 2017-18 school year, 66.40 percent.

6. For the 2018-19 school year and each school year thereafter, two-thirds.

The bill directs the Joint Committee on Finance to determine the amount appropriated as general school aids for the 2014-15 fiscal year and biennially thereafter.

This bill also eliminates the first dollar and school levy property tax credits.

This bill specifies that a pupil who is eligible for a free or reduced-price lunch under the federal School Lunch Act is counted an additional 20 percent of what he or she would otherwise be counted for state aid purposes.

This bill modifies the secondary ceiling cost factor in the school aid formula. Currently, it is the amount determined by dividing the state total shared cost by the state total enrollment and multiplying the result by .90. This bill removes the 10 percent reduction.

Current law guarantees a school district at least 85 percent of the state aid it received in the previous school year. This bill increases the guarantee to 90 percent. This bill also provides that no school district may receive less in general state aid than $3,000 per pupil.

Current law reduces the state aid of the school districts in which parental choice programs have been established (currently only Milwaukee Public Schools (MPS) and Racine Unified School District) by 38.4 percent of the amount paid to the private schools participating in the parental choice programs. This bill reduces the reduction to 30 percent.

This bill eliminates categorical state aid for high-poverty school districts.

Current law annually delays the payment of $75,000,000 in school aid until July of the following fiscal year. This bill increases that amount to $972,400,000.

Under current law, the per pupil revenue limit increase is $50 in the 2012-13 school year. This bill raises that amount to $200. Under current law, in succeeding years, the increase is zero. This bill provides an increase in succeeding years equal to the five-year rolling average increase in average total personal income in this state multiplied by the secondary cost ceiling per pupil used to distribute state school aid.

Under current law, a school district that levies the maximum amount allowed under revenue limits in the district's November 2012 certification of the district's levy is eligible to receive a per pupil adjustment of up to $50 in the 2012-13 school year. This bill eliminates this per pupil adjustment and transfers the $42,500,000 appropriated for the per pupil adjustment to the general state school aids appropriation for the 2012-13 fiscal year.

Beginning in the 2012-13 school year, this bill provides additional state aid to school districts to ensure that they receive at least the amount of general equalization aid that they received in the previous school year.

Under current law, beginning in the 2013-14 school year, the state pays to each private school participating in a parental choice program, for each pupil attending the private school under the program, the lessor of the school's educational cost per pupil or the amount paid in the previous school year increased by the percentage change in the total amount appropriated as general school aid.

Beginning in the 2013-14 school year, this bill provides for the payment to be the lessor of the school's educational cost per pupil or the amount paid in the previous school year plus the amount determined by multiplying the percentage increase in a five-year rolling average of this state's average total personal income by the secondary cost ceiling per pupil used to distribute state school aid.

This bill requires DPI to reduce payments to independent charter schools and to private schools participating in the parental choice programs in the 2012-13 fiscal year by 3.5 percent.

This bill authorizes DPI to award grants of up to $10,000 to consortia of two or more school districts to study ways of improving efficiency and reducing costs by working cooperatively or to study the feasibility of consolidating the school districts. A consortium awarded a grant to study ways of improving efficiency must provide an amount equal to 20 percent of the amount of the grant. The bill prohibits DPI from awarding more than one grant to the same consortium in the same school year.

Current law requires DPI to prorate state aid payments to school districts for transportation costs if the amount appropriated is insufficient to cover all eligible costs. Under this bill, beginning in the 2011-12 fiscal year, if there is a balance in the appropriation after DPI pays all approved claims, DPI must distribute the balance to school districts on a prorated basis.

Current law, with some exceptions, requires a school district to provide transportation to and from school for a pupil attending a private school that is located at least two miles from the pupil's residence. If the estimated cost of transporting a pupil to a private school is more than 1.5 times the school district's average cost per pupil for bus transportation, the school board may fulfill its obligation to transport the pupil by contracting with the pupil's parent or guardian. Except as provided below, the contract must provide for an annual payment for each pupil of at least $5 times the number of miles between the pupil's residence and the private school, or the school district's average cost per pupil for bus transportation, whichever is greater.

In a first class city school district (currently, only MPS), if two or more pupils reside in the same household and attend the same private school, the contract may, at the discretion of the school board, provide for a total annual payment of the amount described above for all of the pupils instead of for each of the pupils. This bill extends this provision to all school districts.

Currently, annually by May 15 each private school must notify each school board of the names, grade levels, and locations of all pupils eligible to be transported by the school board during the succeeding school term. This bill changes the notification date to July 1.

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:

AB677, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB677, s. 2 Section 2. 20.255 (2) (ac) of the statutes is amended to read:

AB677,5,8 20.255 (2) (ac) General equalization aids. The amounts in the schedule A sum sufficient for the payment of educational aids under ss. 121.08, 121.09, 121.095, 121.105, 121.137 and subch. VI of ch. 121 equal to $4,261,954,000 in the 2011-12 fiscal year, equal to $4,685,888,000 in the 2012-13 fiscal year, equal to the amount determined by the joint committee on finance under s. 121.15 (3m) (c) in the 2014-15 fiscal year and biennially thereafter, and equal to the amount determined by law in the 2013-14 fiscal year and biennially thereafter.

AB677, s. 3 Section 3. 20.255 (2) (ap) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB677, s. 4 Section 4. 20.255 (2) (bf) of the statutes is created to read:

AB677,5,13 20.255 (2) (bf) Hold harmless aid. The amounts in the schedule for hold harmless aid to school districts under s. 121.10.

AB677, s. 5 Section 5. 20.255 (2) (bs) of the statutes is amended to read:

AB677,5,18 20.255 (2) (bs) School district efficiency and consolidation grants. The amounts in the schedule for grants for school district efficiency and consolidation feasibility studies under 2007 Wisconsin Act 20, section 9137 (3k). No funds may be encumbered from this appropriation after June 30, 2009 s. 117.40.

AB677, s. 6 Section 6. 79.10 (4) of the statutes is amended to read:

AB677,5,24 79.10 (4) School levy tax credit. Except as provided in sub. (5m), the amounts appropriated under s. 20.835 (3) (b) and (qb) shall be distributed to municipalities in proportion to their share of the sum of average school tax levies for all municipalities. No municipality shall receive a payment under this subsection after 2012.

AB677, s. 7 Section 7. 79.10 (5m) of the statutes is amended to read:

AB677,6,6 79.10 (5m) First dollar credit. Each municipality shall receive, from the appropriation under s. 20.835 (3) (b), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub. (11) (d), of every parcel of real property with improvements that is located in the municipality. No municipality shall receive a payment under this subsection after 2012.

AB677, s. 8 Section 8. 79.14 of the statutes is amended to read: