Senate Bill 668 introduces a new supplemental state aid program specifically for consolidated school districts in Wisconsin, which will take effect for consolidations occurring on or after July 1, 2026. To qualify for this aid, the maximum allowable levy rate of the newly formed consolidated school district must exceed the lowest levy rate of the underlying school districts that were merged. The bill outlines a tiered aid structure where eligible districts will receive aid based on their equalized value and the difference in levy rates over a six-year period, starting with full aid in the first year and decreasing by 20% each subsequent year until the aid is phased out.

Additionally, the bill amends current law to include the new aid program under the existing revenue limit framework for school districts, meaning it will reduce the amount of property taxes that these districts can levy. The bill does not alter the existing state aid of $150 per pupil for the first five years following a consolidation, nor does it provide additional funding for the new aid program. The legal language of the bill includes the insertion of section 121.134, which details the eligibility criteria and calculation methods for the new aid, and the amendment of section 121.90 to incorporate this new aid into the existing framework of state aids.

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