Senate Bill 491 proposes significant changes to the funding structure for school districts in Wisconsin, particularly regarding general equalization aids and per pupil revenue limits. The bill repeals certain provisions of existing law and introduces new language to adjust the per pupil revenue limit based on the previous year's increase adjusted for the consumer price index, rather than a fixed annual increase of $325. Additionally, it increases state aid distributed to school districts through the equalization formula by $493.8 million for the 2025-26 school year and $699.9 million for the 2026-27 school year. The bill also ensures that each school district receives at least the same amount of total state aid in the 2025-26 school year as it did in the 2024-25 school year, providing an additional $31 million for this purpose.

The bill includes several amendments and deletions to existing statutes, such as the repeal of sections related to supplemental hold harmless aid and adjustments to the revenue limits for school districts. Notably, it creates new provisions for supplemental hold harmless aid and modifies the calculation of revenue increases per pupil to reflect changes in the allowable rate of increase. The fiscal implications of these changes are significant, with a substantial increase in funding aimed at supporting school districts and ensuring equitable distribution of state aid. The act is set to take effect the day after publication, with specific provisions taking effect on July 1, 2026.

Statutes affected:
Bill Text: 20.255(2)(ac), 20.255, 121.905(3)(c)6, 121.905, 121.905(3)(c)9, 121.91(2m)(j)2, 121.91, 121.91(2m)(j)3, 121.91(2m)(r)1.b, 121.91(2m)(s)1.b