2025 - 2026 LEGISLATURE
LRB-1974/1
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2025 SENATE BILL 61
February 21, 2025 - Introduced by Senators BRADLEY and NASS, cosponsored by
Representatives ALLEN, MAXEY, BEHNKE, BRILL, DITTRICH, GUNDRUM,
KNODL, KREIBICH, O'CONNOR, PIWOWARCZYK, SORTWELL and WICHGERS.
Referred to Committee on Education.
AN ACT to amend 121.07 (6) (a) (intro.) and 121.07 (6) (am); to create 121.07
(6) (ap) of the statutes; relating to: excluding expenditures funded by
referenda from shared costs for the purpose of determining equalization aid for
school districts.
Analysis by the Legislative Reference Bureau
Under current law, a school district[s shared cost is one of the factors used to
calculate a school district[s equalization aid. Generally, under current law, a school
district[s shared cost is the sum of the school district[s expenditures from its general
fund and its debt service fund.
Under this bill, expenditures from either a school district[s general fund or
debt service fund that are authorized by 1) an operating referendum held after the
date on which this bill becomes law to exceed the school district[s revenue limit by
more than $50,000,000 or 2) a capital referendum held after the date on which this
bill becomes law to borrow more than $50,000,000 are excluded from the school
district[s shared cost, unless the school district was a negative tertiary school
district in the previous school year. A school district is a negative tertiary school
district if its equalized valuation exceeds the tertiary guaranteed valuation per
member.
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For further information see the 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:
SECTION 1. 121.07 (6) (a) (intro.) of the statutes is amended to read:
121.07 (6) (a) (intro.) XShared Subject to pars. (am) and (ap), Xshared costY is
the sum of the net cost of the general fund and the net cost of the debt service fund,
except that Xshared costY excludes any costs, including attorney fees, incurred by a
school district as a result of its participation in a lawsuit commenced against the
state, beginning with such costs incurred in the fiscal year in which the lawsuit is
commenced, excludes any expenditures from a capital improvement trust fund
created under s. 120.137, excludes any debt service costs associated with an
environmental remediation project under s. 67.05 (7) (er), and excludes the costs of
transporting those transfer pupils for whom the school district operating under ch.
119 does not receive intradistrict transfer aid under s. 121.85 (6) as a result of s.
121.85 (6) (am). In this paragraph:
SECTION 2. 121.07 (6) (am) of the statutes is amended to read:
121.07 (6) (am) In par. (a), for the purpose of calculating state aid paid to a
school district in the 2006-07 and 2007-08 school years, Xshared costY excludes any
the amount expended in the previous school year from the school district[s fund
balance to pay the school district[s unfunded pension liability under the Wisconsin
Retirement System or to pay debt service for debt issued to refinance the balance of
the unfunded pension liability if the result of excluding such expenditures is an
increase in state aid paid to the school district under s. 121.08 levied by a school
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SECTION 2
district or levied for school purposes in the previous school year that was approved
by a referendum held under s. 121.91 (3) after the effective date of this paragraph
.... [LRB inserts date], to exceed the limit under s. 121.91 (2m) by at least
$50,000,000, unless, in the previous school year, the school district[s equalized
valuation exceeded the tertiary guaranteed valuation per member.
SECTION 3. 121.07 (6) (ap) of the statutes is created to read:
121.07 (6) (ap) In par. (a), Xdebt serviceY excludes debt service on debt
authorized by a referendum held after the effective date of this paragraph .... [LRB
inserts date], to borrow at least $50,000,000, unless, in the previous school year, the
school district[s equalized valuation exceeded the tertiary guaranteed valuation per
member.
(END)
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