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ORDER OF THE
STATE SUPERINTENDENT OF PUBLIC INSTRUCTION
ADOPTING PERMANENT RULES
The scope statement for this rule, SS 036-18, was published in Register No. 748A1, on April 2, 2018, and approved by State Superintendent Tony Evers on April 27, 2018.
The State Superintendent of Public Instruction hereby adopts an order to repeal s. PI 35.02 (2), (14), (22), and (24), 35.03 (4), (5) (a) 1., 2., (b) 1., 2., and (7) (c) to (e), 35.04 (1) (d), 35.06 (6) (b) 2. a., b., 35.07 (1) (c), (3) (e), (h), (4) (b) 1., and 2., 35.08 (3) (b), (4) (a), (b), and (5) (Note), 35.10 (1) (e) 4., 35.13 (10), and 35.14 (2); to renumber s. PI 35.08 (3) (a) 1. and 3., and 35.14 (1) (a) to (c); to renumber and amend s. PI 35.03 (5) (a) (intro.), (5) (b) (intro.) and (7) (b), 35.06 (6) (b) 2. (intro.) and 4., 35.07 (4) (b) (intro.), 35.08 (3) (a) (intro.), 2., and (4) (intro.), 35.10 (1) (b), (3) (a) 3., and (5), 35.13 (4) (c), 35.14 (1) (intro.); to amend s. PI 35.02 (10), (12) (a), (b) (intro.), and (15), 35.03 (3) (intro.), (a) 2., (d), (5) (b) (Note), (6) (intro.), (a) (intro.) 3., 4., (b), (c), and (7) (a), 35.04 (1) (c), (e), (2), and (3), 35.05 (1) (a), (4) (a), (b) 2., and (8) (c) (intro.), 35.06 (1) (a), (3), (6) (b) 1., (7) (intro.), (b), and (8) (intro.), 35.07 (1) (intro.), (a), (b), (2), (3) (d) 2., (f), (g), (k), (L), (n), and (4) (a), 35.08 (1), (2), and (5), 35.10 (1) (e) 1., (2), (3) (a) 1., 2., 4., (b) 1., (c) 1., (3) (d) 1., (4), and (6), 35.11 (6), 35.12 (5), 35.13 (2) (title), (intro.), (b) (intro.), (4) (a), and (14) (b), 35.15 (1) (intro.), (a), (b), (f), (g), (h), (6) (b) (intro.), (c), (d) 4., 5., 6., and (e), 35.17 (1) and (2), 35.18 (intro.) and 35.19 (1) to (4); to repeal and recreate s. PI 35.09 (1); and to create s. PI 35.02 (14m), (21m), and (23m), 35.03 (3) (bm), (7) (b) 1. to 3., (f), (9) and (Note), 35.04 (1) (f) 6m. and (2) (bm), 35.06 (6) (b) 2m., 4. a., b., and (8) (a) 4., 35.07 (3) (r), 35.08 (6), 35.09 (3) to (5), 35.10 (1) (b) 1., 2., (e) 4m., (3) (a) 3. a., b., (c) 4., (5) (a) 1. to 3., and (b), 35.13 (2) (a) 7., (4) (c) 1. to 3., and (10m), 35.14 (1g), (3) (intro.), (a) 6m., and (4) to (11), and 35.15 (5), relating to changes to rules governing the Milwaukee Parental Choice Program as a result of 2017 Wisconsin Acts 36 and 59 and other changes.
ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Statute interpreted: s. 119.23, Stats.
Statutory authority: s. 119.23 (11) (a), Stats.
Explanation of agency authority:
The Department must promulgate rules to implement and administer the Milwaukee Parental Choice Program, pursuant to s. 119.23 (11) (a), Stats.
Related statute or rule: ss. 115.7915 and 118.60, Stats., and ch. PI 48 and 49
Plain language analysis:
The proposed rule will amend Chapter PI 35 of the Wisconsin Administrative Code in order to conform Department rules governing the Milwaukee parental choice program to changes in statute as a result of 2017 Wisconsin Acts 36 and 59. The proposed rule will also make other various changes to conform the rule to best practices and efficiencies in program administration. Key aspects of the rule include the following:
Specifies the requirements for the modified financial audit and the standard financial audit.
Specifies the background check requirements, including how the background check must be completed.
Modifies certain due dates so the dates will not fall on a weekend.
Specifies that the budgets required for the program must include the anticipated beginning and ending reserve balance.
Clarifies that the financial audit used to ensure schools meet choice program financial requirements includes the financial audit under s. 115.7915, Stats. Also specifies the non financial viability indicators include the school having a net loss or negative change in net assets in the financial audit or the budget and cash flow.
Modifies the full time equivalent determination so that it is based on the required number of hours for first grade pupils in the private school rather than first grade pupils in the public school district.
Removes the requirement to use original classroom records when completing the procedures for choice program pupils for the enrollment audit. The procedures ensure the submitted pupil counts are accurate by comparing the school submitted pupil count reports to the official attendance records.
Specifies that the identification of choice program pupils may be in a different report than the official attendance records.
Removes summer school provisions already included in statute and modifies course eligibility provisions for summer school.
Clarifies the requirements for including fixed assets in the financial audit.
Specifies that leased right of use assets, which will be required in financial audits due to a change in generally accepted accounting principles, are not included in the required cash and investment balance calculation.
Specifies how net eligible education expenses are calculated if the school is not eligible for all choice program payments.
Specifies what is considered a management letter.
Clarifies the school’s responsibility for the financial requirements.
Specifies the impact of the statement of actual cost on the reserve balance schedule calculations.
Modifies the hours of instruction requirement for continuing schools.
Removes continuing eligibility requirements since they were removed from s. 119.23, Stats.
Clarifies which schools are new private schools.
Modifies the disclosure of information requirement based on changes in s. 119.23, Stats.
Specifies the requirements for a school to indicate it would like an all student accountability report card.
Modifies the auditor fee payment to allow for the amount to be paid using another guaranteed manner permitted by the department.
Modifies the continuing pupil definition and who can complete a department of revenue income determination so that the requirements are consistent with changes in s. 119.23, Stats.
Specifies that the pupil count reports must include the waiting list pupils for the Milwaukee parental choice program.
Specifies that the Choice waiting lists and waiting list applications must be audited by the independent auditor as part of the enrollment audit.
Clarifies that the preliminary enrollment report may not include a pupil that has withdrawn from the school.
Clarifies the employee compensation documentation requirements, including specifying the requirements when schools notify employees of changes in compensation.
Removes the requirement for the risk management and insurance evaluation. All schools participating in the program are required to have a minimum amount of insurance unless a different amount is recommended by a risk or insurance consultant.
Specifies the surety bond requirements for schools that are new to the program.
Specifies that schools new to the program must provide evidence that the school has the required insurance and fidelity bond.
Summary of, and comparison with, existing or proposed federal regulations: N/A
Summary of any public comments and feedback on the statement of scope for the proposed rule that the agency received at a preliminary public hearing and comment period held and a description of how and to what extent the agency took those comments into account and drafting the proposed rule:
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