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WI AB81

WI AB81
Excluding expenditures funded by referenda from shared costs for the purpose of determining equalization aid for school districts. (FE)


summary

Introduced
02/28/2025
In Committee
02/28/2025
Crossed Over
Passed
Dead
03/23/2026

Introduced Session

2025-2026 Regular Session

Bill Summary

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. For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill modifies how school district shared costs are calculated for the purpose of determining equalization aid by excluding certain referendum-approved expenditures. Specifically, the bill exempts from shared cost calculations any expenditures from a school district's general fund or debt service fund that are authorized by an operating referendum exceeding the district's revenue limit by more than $50 million, or a capital referendum to borrow more than $50 million. However, this exclusion does not apply to school districts classified as "negative tertiary school districts" - those with an equalized valuation that exceeds the tertiary guaranteed valuation per member. The bill aims to provide financial flexibility for school districts by allowing certain large referendum-approved expenditures to be excluded from the shared cost calculation, which could potentially increase state aid for eligible districts. This change could help districts fund significant projects or operational needs without negatively impacting their state aid calculations, while maintaining a safeguard to prevent wealthy districts from receiving additional benefits.

Committee Categories

Education

Sponsors (13)

Last Action

Failed to pass pursuant to Senate Joint Resolution 1 (on 03/23/2026)

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