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2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 900
February 5, 2024 - Offered by Representatives Schutt, Kitchens and Maxey.
AB900-ASA1,1,8 1An Act to repeal 115.7915 (4m) (f), 118.40 (2r) (g), 118.40 (2x) (f), 118.60 (3) (d),
2118.60 (4d), 121.07 (2), 121.08 (4) (b) 1. and 3., 121.085, 121.845 (1m) and 121.91
3(4) (n); to consolidate, renumber and amend 121.08 (4) (b) (intro.) and 2.;
4to amend 115.7915 (4m) (title), 118.60 (4s), 121.137 (2), 121.15 (1) (c), 121.15
5(1g) (c), 121.90 (1) (g) and 121.91 (7); and to create 121.91 (4) (m) of the statutes;
6relating to: reductions to state aid paid to school districts for payments made
7under parental choice programs and the Special Needs Scholarship Program
8and to certain independent charter schools and school district revenue limits.
Analysis by the Legislative Reference Bureau
This bill repeals reductions to state aid paid to 1) school districts for per pupil
payments made under the Milwaukee Parental Choice Program, the Racine
Parental Choice Program, the Wisconsin Parental Choice Program, and the Special
Needs Scholarship Program; and 2) independent charter schools authorized by the
Office of Educational Opportunity in the UW System, the chancellor of an institution
in the UW System other than UW–Milwaukee or UW–Parkside, a technical college
district board other than the Milwaukee Area Technical College district board, the

county executive of Waukesha County, the College of Menominee Nation, or the Lac
Courte Oreilles Ojibwa Community College (new charter school authorizer). The bill
also provides a one-time recurring revenue limit adjustment for school districts that
is equal to 25 percent of the impact on a school district's levy that occurs due to the
changes in the bill, including removing parental choice pupils and independent
charter school pupils and shared costs associated with reductions for payments made
for those pupils from the general state formula.
The Racine and Wisconsin Parental Choice Programs and the Special Needs
Scholarship Program
Under current law, per pupil payments to private schools participating in the
RPCP, WPCP, and SNSP are paid from sum sufficient appropriations, ensuring that
full payments are made to private schools for pupils participating in each of the
programs. Current law also requires the Department of Public Instruction to reduce
each school district's equalization aid by an amount equal to the total per pupil
payments paid to private schools participating in the RPCP, WPCP, and SNSP that
are attributable to pupils residing in that school district. If a school district does not
receive equalization aid sufficient to cover the aid reduction, the balance is reduced
from other state aid received by the school district. These aid reductions are
deposited into the general fund. In general, these reductions reimburse the general
fund for per pupil payments made under the RPCP, WPCP, and SNSP. Under current
law, pupils who participated in the RPCP or WPCP before the 2015-16 school year
are not included for purposes of the equalization aid reduction.
The bill eliminates reductions to equalization aid for per pupil payments made
under the RPCP, WPCP, and SNSP beginning in the 2024-25 school year.
Under current law, a pupil participating in the RPCP, WPCP, or SNSP for whom
a per pupil payment was made in the previous school year is included in the pupil's
resident school district's membership for purposes of calculating general state aids.
A school district's membership in the previous school year is a factor used to calculate
equalization aid. Current law also allows a school district to increase its revenue
limit by the amount of the aid reduction described above.
The bill repeals both of these provisions. Under the bill, beginning in the
2024-25 school year, a pupil participating in the RPCP, WPCP, or SNSP is not
included in the pupil's resident school district membership and there is no longer a
school district revenue limit adjustment for the aid reduction described above.
The Milwaukee Parental Choice Program
Under current law, payments to private schools participating in the MPCP are
paid from a sum sufficient appropriation, ensuring that full payments are made to
private schools for all pupils participating in the MPCP. Current law also requires
DPI to reduce the general state aid for Milwaukee Public Schools by a percentage of
the amount paid to private schools participating in the MPCP and deposit the
reduction into the general fund. Under revenue limits, MPS may levy property taxes
to make up for the amount of general aid lost due to this reduction.
Current law describes the amount of the reduction in two parts. In the 2023-24
school year, the first part of the reduction to the general state aid for MPS is 3.2
percent of the total per pupil payments made to private schools participating in the

MPCP. Under current law, this part of the reduction is reduced by 3.2 percentage
points each school year until the 2024-25 school year, at which time there is no
reduction. The bill eliminates this aspect of the reduction to the general state aid for
MPS.
The second part of the MPS general state aid reduction under current law is
equal to 6.6 percent of the total per pupil payments made to private schools
participating in the MPCP. However, current law requires DPI to provide additional
state aid, known as first class city school levy aid, to the City of Milwaukee and
requires the City of Milwaukee to pay the amount received to the school board. In
other words, the school board receives the amount of the reduction through first class
city school levy aid. The bill does not eliminate this reduction or the first class city
school levy aid.
Independent charter schools
Under current law, per pupil payments to an independent charter school
authorized by a new charter school authorizer are paid from sum sufficient
appropriations, ensuring that full payments are made to independent charter
schools. Current law also requires DPI to reduce each school district's equalization
aid by an amount equal to the total per pupil payments paid to these independent
charter schools that are attributable to pupils residing in that school district. If a
school district does not receive equalization aid sufficient to cover the aid reduction,
the balance is reduced from other state aid received by the school district. These aid
reductions are deposited into the general fund. In general, these reductions
reimburse the general fund for per pupil payments made to independent charter
schools that are authorized by new charter school authorizers.
The bill eliminates reductions to equalization aid for per pupil payments made
to these independent charter schools beginning in the 2024-25 school year. The
2021-23 biennial budget eliminated reductions to equalization aid for payments
made to independent charter schools authorized by the City of Milwaukee, the
chancellor of UW–Milwaukee, the chancellor of UW–Parkside, or the Milwaukee
Area Technical College district board (legacy charter school authorizers).
Under current law, a pupil for whom a per pupil payment was made to an
independent charter school authorized by a new charter school authorizer in the
previous school year is included in the pupil's resident school district's membership
for purposes of calculating general state aids. A school district's membership in the
previous school year is a factor used to calculate equalization aid. Additionally,
under current law, pupils attending an independent charter school authorized by a
new charter school authorizer are included in their resident school district's pupil
count for purposes of calculating revenue limits.
The bill repeals both of these provisions. Under the bill, beginning in the
2024-25 school year, a pupil attending an independent charter school authorized by
a new charter school authorizer is not included in the pupil's resident school district
membership and is not counted as enrolled in the pupil's resident school district for
purposes of revenue limits.

School district revenue limit adjustment
The bill creates a school district revenue limit adjustment that increases a
school district's limit for the 2024-25 school year by an amount equal to 25 percent
of the levy impact of the changes discussed above for each school district. The
revenue limit adjustment is a recurring revenue limit adjustment, which means the
increase is included in the base for determining a school district's revenue limit for
the next school year.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB900-ASA1,1 1Section 1 . 115.7915 (4m) (title) of the statutes is amended to read:
AB900-ASA1,4,22 115.7915 (4m) (title) Scholarship payments; state aid reduction.
AB900-ASA1,2 3Section 2 . 115.7915 (4m) (f) of the statutes is repealed.
AB900-ASA1,3 4Section 3. 118.40 (2r) (g) of the statutes is repealed.
AB900-ASA1,4 5Section 4. 118.40 (2x) (f) of the statutes is repealed.
AB900-ASA1,5 6Section 5. 118.60 (3) (d) of the statutes is repealed.
AB900-ASA1,6 7Section 6 . 118.60 (4d) of the statutes is repealed.
AB900-ASA1,7 8Section 7 . 118.60 (4s) of the statutes is amended to read:
AB900-ASA1,4,129 118.60 (4s) Notwithstanding subs. (4), (4d), (4m), and (4r), a pupil attending
10a private school participating in the program under this section who is receiving a
11scholarship under s. 115.7915 shall not be counted as a pupil attending the private
12school under this section under sub. (4), (4d), (4m), or (4r).
AB900-ASA1,8 13Section 8 . 121.07 (2) of the statutes is repealed.
AB900-ASA1,9 14Section 9 . 121.08 (4) (b) (intro.) and 2. of the statutes are consolidated,
15renumbered 121.08 (4) (b) and amended to read:
AB900-ASA1,5,316 121.08 (4) (b) The amount of state aid that the school district operating under
17ch. 119 is eligible to be paid from the appropriation under s. 20.255 (2) (ac) shall be
18reduced by the amount calculated as follows: 2. Multiply by multiplying the amounts

1paid under s. 119.23 (4) and (4m) in the 2009-10 school year by 3.4 percent, and
2multiply by multiplying the amounts paid under s. 119.23 (4) and (4m) in the 2010-11
3school year and in each school year thereafter by 6.6 percent.
AB900-ASA1,10 4Section 10 . 121.08 (4) (b) 1. and 3. of the statutes are repealed.
AB900-ASA1,11 5Section 11. 121.085 of the statutes is repealed.
AB900-ASA1,12 6Section 12 . 121.137 (2) of the statutes is amended to read:
AB900-ASA1,5,97 121.137 (2) Annually, the department shall calculate the amount of the state
8aid reduction under s. 121.08 (4) (b) 2. in the current school year and shall notify the
9board, in writing, of the result.
AB900-ASA1,13 10Section 13 . 121.15 (1) (c) of the statutes is amended to read:
AB900-ASA1,5,1411 121.15 (1) (c) For the payments from December to June, the total aid
12entitlement for each district shall be computed on the basis of the school district's
13membership, as calculated under s. 121.07 (2)
budget and membership report under
14s. 121.05
.
AB900-ASA1,14 15Section 14 . 121.15 (1g) (c) of the statutes is amended to read:
AB900-ASA1,5,1816 121.15 (1g) (c) For the payments from November to June, the total aid
17entitlement shall be computed on the basis of the school district's membership, as
18calculated under s. 121.07 (2)
budget and membership report under s. 121.05.
AB900-ASA1,15 19Section 15 . 121.845 (1m) of the statutes is repealed.
AB900-ASA1,16 20Section 16. 121.90 (1) (g) of the statutes is amended to read:
AB900-ASA1,6,221 121.90 (1) (g) In Beginning in the 2017-18 school year and in each ending in
22the 2023-24
school year thereafter, the “number of pupils enrolled" shall include the
23total number of pupils residing in the school district who on the 3rd Friday of
24September of each appropriate school year attend a charter school established under

1a contract with an entity under s. 118.40 (2r) (b) 1. e. to h. or a charter school
2established under a contract with the director under s. 118.40 (2x).
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