LRB-1276/1
FFK:cjs
2019 - 2020 LEGISLATURE
May 15, 2019 - Introduced by Senators Marklein, Feyen,
Nass and Olsen,
cosponsored by Representatives
Kitchens, Ballweg, Brandtjen, Horlacher,
Kulp, Kurtz, Tittl and VanderMeer. Referred to Committee on Education.
SB207,1,3
1An Act to amend 121.90 (2) (am) 1.; and
to create 20.255 (2) (bq) and 121.134
2of the statutes;
relating to: supplemental state aid for consolidated school
3districts and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a new aid program for certain consolidated school districts. To
be eligible for this aid, the consolidation that created the consolidated school district
must take effect on or after July 1, 2020, and the consolidated school district's
maximum allowable levy rate must be greater than the lowest levy rate of the school
districts that were consolidated to create the school district (underlying school
districts). In general, the levy rate of a school district is the total amount of property
taxes levied by the school district divided by the school district's equalized value.
If a consolidated school district satisfies the above-described criteria, in the
first school year following the consolidation, the consolidated school district is
entitled to aid in an amount equal to the consolidated school district's equalized value
multiplied by the difference between the maximum allowable levy rate of the
consolidated school district and the lowest levy rate of the underlying school districts
(base aid amount). In the second school year following the consolidation, the
consolidated school district is entitled to aid in an amount equal to 80 percent of the
base aid amount. In the third school year following the consolidation, the
consolidated school district is entitled to aid in an amount equal to 60 percent of the
base aid amount. The amount of the aid continues to be reduced by 20 percent each
school year so that in the sixth school year following the consolidation, the
consolidated school district no longer receives this aid.
Current law limits the total amount of revenue a school district may receive
from general state aids and property taxes in a school year. This limitation is known
as a school district's revenue limit. The new aid provided under the bill is a general
state aid for purposes of school district revenue limits. As a result, the new aid
reduces the amount of property taxes that the consolidated school district is allowed
to levy.
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:
SB207,1
1Section
1. 20.255 (2) (bq) of the statutes is created to read:
SB207,2,32
20.255
(2) (bq)
Supplemental state aid for consolidated school districts. A sum
3sufficient to pay state aid to eligible consolidated school districts under s. 121.134.
SB207,2
4Section
2. 121.134 of the statutes is created to read:
SB207,2,6
5121.134 Supplemental state aid; consolidated school districts. (1) In
6this section:
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(a) “Consolidated school district” means a school district created by a
8consolidation under s. 117.08 or 117.09 that takes effect on or after July 1, 2020.
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(b) “Levy rate” means the total amount of property taxes levied by a school
10district divided by the school district's equalized valuation.
SB207,2,1211
(c) “Underlying school district” means a school district that is consolidated to
12create a consolidated school district.
SB207,2,14
13(2) The department shall determine whether a consolidated school district is
14eligible for aid under this section as follows:
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(a) Calculate the levy rate for each underlying school district in the school year
16prior to the school year in which the consolidation takes effect.
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(b) Identify the lowest levy rate calculated under par. (a).
SB207,3,4
1(c) Calculate the levy rate for the consolidated school district for the school year
2in which the consolidation takes effect, assuming that the consolidated school
3district will levy the maximum amount allowable under s. 121.91 for that school year
4and will not receive aid under this section for that school year.
SB207,3,65
(d) If the levy rate under par. (c) is equal to or less than the levy rate under par.
6(b), the consolidated school district is not eligible for aid under this section.
SB207,3,87
(e) If the levy rate under par. (c) is more than the levy rate under par. (b), the
8consolidated school district is eligible for aid under this section.
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9(3) The department shall pay a consolidated school district that is determined
10to be eligible for aid under sub. (2) (e), the following amounts:
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(a) In the school year in which the consolidation takes effect, an amount
12calculated as follows:
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1. Subtract the levy rate identified under sub. (2) (b) from the levy rate
14determined under sub. (2) (c).
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2. Multiply the amount amount under subd. 1. by the consolidated school
16district's equalized valuation for the school year in which the consolidation takes
17effect.
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(b) In the school year following the school year in which the consolidation takes
19effect, 80 percent of the amount determined under par. (a)
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(c) In the 2nd school year following the school year in which the consolidation
21takes effect, 60 percent of the amount determined under par. (a).
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(d) In the 3rd school year following the school year in which the consolidation
23takes effect, 40 percent of the amount determined under par. (a).
SB207,3,2524
(e) In the 4th school year following the school year in which the consolidation
25takes effect, 20 percent of the amount determined under par. (a).
SB207,3
1Section
3. 121.90 (2) (am) 1. of the statutes is amended to read:
SB207,4,42
121.90
(2) (am) 1. Aid under ss. 121.08, 121.09, 121.105,
121.134, and 121.136
3and subch. VI, as calculated for the current school year on October 15 under s. 121.15
4(4) and including adjustments made under s. 121.15 (4).
