AB6: Bill Text

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:

AB6,1 Section 1. 118.24 (1) of the statutes is amended to read:

AB6,3,2 118.24 (1) A school board may employ a school district administrator, a business manager, and school principals and assistants to such persons. The term of each employment contract may not exceed 2 years. A contract for a term of 2 years may provide for one or more extensions of one year each. In an employment contract under this subsection, a school board may not provide a school district administrator, business manager, or school principal, or an assistant to such a person, an annual percentage increase in total compensation that is greater than the average annual percentage increase in total compensation provided to teachers in the school district.

AB6,2 Section 2. 119.44 (2) (c) of the statutes is amended to read:

AB6,3,4 119.44 (2) (c) The information specified under s. 120.18 (1) (gm), (h), and (i).

AB6,3 Section 3. 120.18 (1) (h) of the statutes is created to read:

AB6,3,8 120.18 (1) (h) The percentage of the school district’s total operating expenditures that were spent during the school year on direct classroom expenditures, as defined in s. 121.10 (1) (a).

AB6,4 Section 4. 121.085 (1) of the statutes is amended to read:

AB6,3,12 121.085 (1) The department shall make state aid adjustments under s. ss. 118.51 (16) and (17) and 121.10 before making a reduction under s. 115.7915 (4m) (f), 118.40 (2r) (g) or (2x) (f), or 118.60 (4d) (b).

AB6,5 Section 5. 121.10 of the statutes is created to read:

AB6,3,14 121.10 Classroom expenditures. (1) Definitions. In this section:

AB6,3,17 (a) “Direct classroom expenditures” means expenditures for salaries and benefits of teachers and teacher aides, instructional supplies, tuition, athletic programs, and cocurricular activities.

AB6,3,19 (b) “Excess expenditures” means the amount determined as follows, if a positive number:

AB6,3,20 1. Multiply the school district’s total operating expenditures by 0.7.

AB6,3,22 2. Subtract from the product under subd. 1. the amount spent by the school district for direct classroom expenditures.

AB6,4,2 (2) Classroom expenditures; minimum amount. (a) Annually, the school board shall spend at least 70 percent of a school district’s total operating expenditures on direct classroom expenditures.

AB6,4,7 (b) If in any school year a school board spends less than 70 percent of the school district’s total operating expenditures on direct classroom expenditures, the school board shall increase the percentage spent on direct classroom expenditures by at least 2 percent each succeeding school year until the 70 percent level is attained.

AB6,4,9 (3) State aid reduction. The state superintendent shall do all of the following:

AB6,4,13 (a) Deduct from the state aid payment to a school district under s. 121.08 in the school year following any school year in which the school district violated sub. (2) (a) an amount equal to the excess expenditures for the school district or the amount of those aids, whichever is less.

AB6,4,18 (b) If the amount of the deduction under par. (a) is insufficient to cover the excess expenditures, deduct from the other state aid payments to the school district in the school year following the school year in which the school district violated sub. (2) (a) an amount equal to the remaining excess expenditures or the amount of those payments, whichever is less.

AB6,5,3 (c) If the amount of the deductions under pars. (a) and (b) is insufficient to cover the excess expenditures, order the school board to reduce the property tax obligations of its taxpayers by an amount that represents the remainder of the excess expenditures. The school district’s refunds to taxpayers who have already paid their taxes shall be increased by interest at the rate of 0.5 percent per month. If the school board violates the order, any resident of the school district may seek injunctive relief. This paragraph does not apply to property taxes levied for the purpose of paying the principal and interest on valid bonds or notes issued by the school board.

AB6,5,6 (d) Ensure that the amount of the aid deductions under this subsection does not affect the amount determined to be received by a school district as state aid under s. 121.08 for any other purpose.

AB6,6 Section 6. Initial applicability.

AB6,5,9 (1) The treatment of s. 118.24 (1) first applies to a contract that is entered into, renewed, or modified on the effective date of this subsection.

AB6,7 Section 7. Effective dates. This act takes effect on July 1, 2026, except as follows:

AB6,5,13 (1) The treatment of s. 118.24 (1) and Section 6 (1) take effect on the day after publication.

AB6,5,14 (end)