AB677: Bill Text

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:

AB677,6,12 79.14 School levy tax credit. The appropriation under s. 20.835 (3) (b), for the payments under s. 79.10 (4), is $319,305,000 in 1994, 1995, and 1996; $469,305,000 beginning in 1997 and ending in 2006; $593,050,000 in 2007; $672,400,000 in 2008; $747,400,000 in 2009; and $732,550,000 in 2010 and in each year thereafter, 2011, and 2012.

AB677, s. 9 Section 9. 79.15 of the statutes is amended to read:

AB677,6,17 79.15 Improvements credit. The total amount paid each year to municipalities from the appropriation account under s. 20.835 (3) (b) for the payments under s. 79.10 (5m) is $75,000,000 in 2009, $145,000,000 in 2010, and $150,000,000 in 2011 and in each year thereafter 2012.

AB677, s. 10 Section 10. 117.40 (5) of the statutes is created to read:

AB677,6,20 117.40 (5) The department shall promulgate rules to implement and administer this section.

AB677, s. 11 Section 11. 118.30 (1s) (a) (intro.) of the statutes is amended to read:

AB677,6,24 118.30 (1s) (a) (intro.) Except as provided in par. (b), annually Annually, the governing body of each private school participating in the program under s. 119.23 shall do all of the following:

AB677, s. 12 Section 12. 118.30 (1s) (b) of the statutes is repealed.

AB677, s. 13 Section 13. 118.60 (4) (b) 2. of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB677,7,12 118.60 (4) (b) 2. The amount paid per pupil under this subsection in the previous school year multiplied by the sum of 1.0 plus an amount determined by multiplying the percentage change from the previous school year to the current school year in the total amount appropriated under s. 20.255 (2) (ac) expressed as a decimal, but not less than zero increase in the average total personal income in this state between the 5 years beginning with the 7th previous calendar year and the 5 years beginning with the 6th previous calendar year by the secondary cost ceiling per member used to distribute state aid in the current school year. In this subdivision, "average total personal income" means the average total personal income as reported by the U.S. Bureau of Economic Analysis.

AB677, s. 14 Section 14. 118.60 (4r) (a) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB677,7,17 118.60 (4r) (a) Multiply In the 2011-12 school year, multiply the amount determined under sub. (4) (b) or (bg) by 0.616; and in each school year thereafter, multiply the amount determined under sub. (4) (b) or (bg) by 0.70.

AB677, s. 15 Section 15. 119.23 (4) (b) 2. of the statutes is amended to read:

AB677,8,3 119.23 (4) (b) 2. The amount paid per pupil under this subsection in the previous school year multiplied by the sum of 1.0 plus an amount determined by multiplying the percentage change from the previous school year to the current school year in the total amount appropriated under s. 20.255 (2) (ac) expressed as a decimal, but not less than zero increase in the average total personal income in this state between the 5 years beginning with the 7th previous calendar year and the 5 years beginning with the 6th previous calendar year by the secondary cost ceiling per member used to distribute state aid in the current school year. In this subdivision, "average total personal income" means the average total personal income as reported by the U.S. Bureau of Economic Analysis.

AB677, s. 16 Section 16. 119.23 (4r) (a) 2. of the statutes is amended to read:

AB677,8,6 119.23 (4r) (a) 2. In the 2010-11 and 2011-12 school year and in any school year thereafter years, multiply the amount determined under sub. (4) (b) or (bg) by 0.616.

AB677, s. 17 Section 17. 119.23 (4r) (a) 3. of the statutes is created to read:

AB677,8,9 119.23 (4r) (a) 3. In the 2012-13 school year and in any school year thereafter, multiply the amount determined under sub. (4) (b) or (bg) by 0.70.

AB677, s. 18 Section 18. 119.46 (1) of the statutes, as affected by 2011 Wisconsin Act 17, is amended to read:

AB677,9,6 119.46 (1) As part of the budget transmitted annually to the common council under s. 119.16 (8) (b), the board shall report the amount of money required for the ensuing school year to operate all public schools in the city under this chapter, to repair and keep in order school buildings and equipment, to make material improvements to school property, and to purchase necessary additions to school sites. The report shall specify the amount of net proceeds from the sale or lease of city-owned property used for school purposes deposited in the immediately preceding school year into the school operations fund as specified under s. 119.60 (2m) (c). The amount included in the report for the purpose of supporting the Milwaukee Parental Choice Program under s. 119.23 shall be reduced by the amount of aid received by the board under s. 121.136 and by the amount specified in the notice received by the board under s. 121.137 (2). The common council shall levy and collect a tax upon all the property subject to taxation in the city, which shall be equal to the amount of money required by the board for the purposes set forth in this subsection, at the same time and in the same manner as other taxes are levied and collected. Such taxes shall be in addition to all other taxes which the city is authorized to levy. The taxes so levied and collected, any other funds provided by law and placed at the disposal of the city for the same purposes, and the moneys deposited in the school operations fund under s. 119.60 (1), (2m) (c), and (5), shall constitute the school operations fund.

AB677, s. 19 Section 19. 121.004 (7) (a) of the statutes is amended to read:

AB677,9,12 121.004 (7) (a) "Pupils enrolled" is the total number of pupils, as expressed by official enrollments, in all schools of the school district, except as provided in pars. (b) to (f) (g). If such total contains a fraction, it shall be expressed as the nearest whole number. The same method shall be used in computing the number of pupils enrolled for resident pupils, nonresident pupils or both.

AB677, s. 20 Section 20. 121.004 (7) (g) of the statutes is created to read:

AB677,9,16 121.004 (7) (g) A pupil who is eligible for a free or reduced-price lunch under 42 USC 1758 (b) shall be counted as the number specified in this subsection for the pupil plus an additional 20 percent of that number.

AB677, s. 21 Section 21. 121.07 (6) (d) of the statutes is amended to read:

AB677,9,21 121.07 (6) (d) The "secondary ceiling cost per member" in the 2001-02 2012-13 school year and in each school year thereafter is an amount determined by dividing the state total shared cost in the previous school year by the state total membership in the previous school year and multiplying the result by 0.90.

AB677, s. 22 Section 22. 121.08 (4) (b) of the statutes is repealed and recreated to read:

AB677,9,24 121.08 (4) (b) The amount of state aid that the school district operating under ch. 119 is eligible to be paid from the appropriation under s. 20.255 (2) (ac) shall also be reduced by the amount determined by multiplying the sum of the amounts paid under s. 119.23 (4) and (4m) in the current school year by 30 percent.

AB677, s. 23 Section 23. 121.08 (4) (br) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB677,10,10 121.08 (4) (br) The amount of state aid that an eligible school district is eligible to be paid from the appropriation under s. 20.255 (2) (ac) shall also be reduced by the amount calculated by multiplying the amounts paid under s. 118.60 (4) and (4m) in the first school year that begins after a school district is identified as an eligible school district under s. 118.60 (1m) or 2011 Wisconsin Act 32, section 9137 (3u), and in each school year thereafter by 38.4 30 percent.

AB677, s. 24 Section 24. 121.10 of the statutes is created to read:

AB677,10,13 121.10 Hold harmless aid. (1) In this section, "state aid" means the sum of the following:

AB677,10,15 (a) The payments made to a school district under ss. 121.08 and 121.105 and subch. VI.

AB677,10,17 (b) The payments that would be made to a school district under s. 121.136 if s. 121.136 were still applicable.

AB677,10,19 (c) The amount that would be received by a school district under s. 79.10 (4) and (5m) if s. 79.10 (4) and (5m) was still applicable.

AB677,10,24 (2) (a) Except as provided in par. (b), beginning in the 2012-13 school year, if a school district would receive less in equalization aid under s. 121.08 in the current school year before any adjustment is made under s. 121.15 (4) (b) than it would have received in state aid in the current school year, the department shall pay to the school district the amount equal to the difference.

AB677,11,6 (b) If a school district from which territory was detached to create a new school district under s. 117.105 would receive in equalization aid under s. 121.08 in the school year beginning on the first July 1 following the effective date of the reorganization less than the amount determined as follows, the department shall pay to the school district the difference between the former amount and the amount determined as follows:

AB677,11,8 1. Divide the school district's membership in the preceding school year by the school district's membership in the 2nd preceding school year.

AB677,11,11 2. Multiply the amount of state aid that would have been received by the school district in the preceding school year, as adjusted under s. 121.15 (4) (b) in the current school year, by the quotient under subd. 1.

AB677,11,17 (3) In the school year in which a school district consolidation takes effect under s. 117.08 or 117.09 and in each of the subsequent 4 school years, if the consolidated school district's equalization aid is less than the aggregate state aid to which the consolidating school districts would have been eligible in the school year prior to the school year in which the consolidation takes effect, the department shall pay the difference to the consolidated school district.

AB677,11,19 (4) Additional aid under this section shall be paid from the appropriation under s. 20.255 (2) (bf).

AB677, s. 25 Section 25. 121.105 (2) (am) 1. of the statutes is amended to read:

AB677,12,2 121.105 (2) (am) 1. Except as provided in subd. 2., if a school district would receive less in state aid in the current school year before any adjustment is made under s. 121.15 (4) (b) than an amount equal to 85% 90 percent of the amount of state aid that it received in the previous school year, as adjusted under s. 121.15 (4) (b) in the current school year, its state aid for the current school year shall be increased to an amount equal to 85% 90 percent of the state aid received in the previous school year.

AB677, s. 26 Section 26. 121.105 (2) (am) 2. (intro.) of the statutes is amended to read:

AB677,12,10 121.105 (2) (am) 2. (intro.) If a school district from which territory was detached to create a new school district under s. 117.105 would receive in state aid in the school year beginning on the first July 1 following the effective date of the reorganization less than 85 90 percent of the amount determined as follows, its state aid in the school year beginning on the first July 1 following the effective date of the reorganization shall be increased to an amount equal to 85 90 percent of the amount determined as follows:

AB677, s. 27 Section 27. 121.105 (4) of the statutes is created to read:

AB677,12,13 121.105 (4) A school district's state aid in any school year may not be less than an amount equal to $3,000 multiplied by the school district's membership.