Assembly Bill 648 introduces a new supplemental state aid program specifically for consolidated school districts in Wisconsin. To qualify for this aid, the consolidation must take effect on or after July 1, 2026, and the maximum allowable levy rate of the new consolidated school district must exceed the lowest levy rate of the underlying school districts that were merged. The aid is structured to provide financial support over a six-year period, starting with a full base aid amount in the first year, which decreases by 20% each subsequent year until it is phased out entirely in the sixth year. The bill also clarifies that this new aid will count as general state aid for the purposes of school district revenue limits, effectively reducing the property tax levies that the consolidated districts can impose.

Additionally, the bill amends current law to include the new aid program under the existing framework of state aid calculations. Specifically, it adds the new section 121.134 to the statutes, which outlines the eligibility criteria and calculation methods for determining the aid amounts for consolidated school districts. The bill does not alter the existing state aid of $150 per pupil that consolidated districts currently receive for the first five years post-consolidation. Overall, while the bill establishes a new funding mechanism for consolidated districts, it does not provide additional funding for the program itself.

Statutes affected:
Bill Text: 121.90(2)(am)1, 121.90