Joint Legislative Council prefatory note: This draft was prepared for the Joint Legislative Council’s Study Committee on Shared School District Services.
Under current law, when two or more school districts consolidate, or when a union high school district consolidates with its included elementary school districts, the newly consolidated school district is eligible for consolidation aid. A school district that was consolidated on or after July 1, 2019, receives $150 per student in the first five years following consolidation. In the 6th year after consolidation, the newly consolidated school district receives consolidation aid in an amount equal to 50 percent of what it received in the 5th year, and in the 7th year it receives aid equal to 25 percent of what it received in the 5th year. Current law provides a sum sufficient appropriation for this aid.
The bill changes the formula for consolidation aid so a consolidated school district receives 9 percent of the statewide average base revenue limit under s. 121.91 (2m) (i) 1., Stats., per pupil in the first 5 years following consolidation. In the 6th year after consolidation, the consolidated school district receives aid in an amount equal to 50 percent of what it received in the 5th year, and in the 7th year it receives aid equal to 25 percent of what it received in the 5th year. Like current law, under the bill, a consolidated school district may be 2 or more school districts that have consolidated, or a union high school district that has consolidated with its included elementary school districts.
The bill provides a sum certain appropriation of $1,500,000 beginning in the 2024-25 fiscal year. If the appropriation is insufficient to pay the full amount of aid each school district is entitled to, the Department of Public Instruction (DPI) must prorate each school district’s payment.
The bill takes effect on the day after publication, or the 2nd day after publication of the 2023 biennial budget act, whichever is later. Finally, the bill requires DPI to submit, in the 2030-31 school year, a report to each appropriate standing committee of the legislature listing the school districts that received consolidation aid under the bill.
AB194,15Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: AB194,26Section 2. 20.255 (2) (br) of the statutes is amended to read: AB194,,7720.255 (2) (br) School district consolidation aid. A sum sufficient The amounts in the schedule to provide aid to school districts under ss. 117.08 (6) and 117.09 (6). AB194,38Section 3. 117.08 (6) (intro.) of the statutes is amended to read: AB194,,99117.08 (6) State aid. (intro.) From the appropriation under s. 20.255 (2) (br) and subject to sub. (7), the department shall pay to a school district created by a consolidation under this section that takes effect on or after July 1, 2019, the following amounts: AB194,410Section 4. 117.08 (6) (a) of the statutes is renumbered 117.08 (6) (a) (intro.) and amended to read: AB194,,1111117.08 (6) (a) (intro.) In the school year in which the consolidation takes effect and in each of the subsequent 4 school years, $150 multiplied the amount calculated as follows: AB194,,12123. Multiply the product under subd. 2. by the number of pupils enrolled, as defined in s. 115.437 (1), in the school district in that school year. AB194,513Section 5. 117.08 (6) (a) 1. of the statutes is created to read: AB194,,1414117.08 (6) (a) 1. Determine the statewide average base revenue limit under s. 121.91 (2m) (i) 1. for that school year. AB194,615Section 6. 117.08 (6) (a) 2. of the statutes is created to read: AB194,,1616117.08 (6) (a) 2. Multiple the amount under subd. 1. by .09. AB194,717Section 7. 117.08 (7) of the statutes is created to read: AB194,,1818117.08 (7) State aid; proration. If the appropriation under s. 20.255 (2) (br) in any fiscal year is insufficient to pay the full amount of aid under sub. (6) and s. 117.09 (6), the department shall prorate state aid payments among the school districts entitled to aid under sub. (6) and s. 117.09 (6). AB194,819Section 8. 117.08 (8) of the statutes is created to read: AB194,,2020117.08 (8) Report. In the 2030-31 school year, the department shall submit to the appropriate standing committees of the legislature under s. 13.172 (3) a report that lists the school districts that received aid under sub. (6) and s. 117.09 (6) and the amount of aid each school district has received. AB194,921Section 9. 117.09 (6) (intro.) of the statutes is amended to read: AB194,,2222117.09 (6) State aid. (intro.) From the appropriation under s. 20.255 (2) (br) and subject to sub. (7), the department shall pay to a school district created by a consolidation under this section that takes effect on or after July 1, 2019, the following amounts: AB194,1023Section 10. 117.09 (6) (a) of the statutes is renumbered 117.09 (6) (a) (intro.) and amended to read: AB194,,2424117.09 (6) (a) (intro.) In the school year in which the consolidation takes effect and in each of the subsequent 4 school years, $150 multiplied the amount calculated as follows: AB194,,25253. Multiply the product under subd. 2. by the number of pupils enrolled, as defined in s. 115.437 (1), in the school district in that school year. AB194,1126Section 11. 117.09 (6) (a) 1. of the statutes is created to read: AB194,,2727117.09 (6) (a) 1. Determine the statewide average base revenue limit under s. 121.91 (2m) (i) 1. for that school year. AB194,1228Section 12. 117.09 (6) (a) 2. of the statutes is created to read: AB194,,2929117.09 (6) (a) 2. Multiple the amount under subd. 1. by .09. AB194,1330Section 13. 117.09 (7) of the statutes is created to read: AB194,,3131117.09 (7) State aid; proration. If the appropriation under s. 20.255 (2) (br) in any fiscal year is insufficient to pay the full amount of aid under sub. (6) and s. 117.08 (6), the department shall prorate state aid payments among the school districts entitled to aid under sub. (6) and s. 117.08 (6). AB194,,3333(1) This act takes effect on the day after publication, or on the 2nd day after publication of the 2023 biennial budget act, whichever is later.
