Assembly Bill 495 proposes significant changes to the funding structure for Wisconsin school districts, 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 funding 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 creation of new provisions for supplemental hold harmless aid and adjustments to the general equalization aids. Notably, it repeals the previous guarantee of a fixed per pupil adjustment and replaces it with a formula that accounts for inflation. The changes aim to provide a more equitable distribution of state aid to school districts while ensuring that no district receives less funding than in the previous year. The bill is set to take effect the day after publication, with specific provisions becoming effective 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