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 percent each subsequent year until it is phased out entirely by 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 list of state aids referenced in section 121.90 (2) (am) 1. The existing state aid for consolidated school districts, which provides $150 per pupil for the first five years post-consolidation, remains unchanged. The bill does not allocate specific funding for the new aid program, and if the appropriated funds are insufficient in any fiscal year, the payments will be prorated among eligible districts.

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