SB 355

Current law provides several mechanisms for a school district to borrow money

and raise revenue.

Loans and Bond Issues

Currently, before a school district may borrow money or issue bonds, the school

board must adopt an initial resolution stating the purposes for and the maximum

amount of the proposed loan or bond issuance. Once an initial resolution has been

adopted, the school board must call a special meeting at which the electors of the

school district will consider the resolution. The school board may either schedule a

special election at which the resolution is submitted by referendum to the electors

of the school district or hold a hearing at which the electors are informed about the

proposed loan or bond issue. If the school board schedules a hearing rather than a

special election and the amount of money to be raised by the bond issue will cause

the aggregate amount of outstanding indebtedness incurred by the school district

without a referendum to exceed the lesser of $1,000,000 or 1.5 percent of the

statewide average equalized valuation per member multiplied by the school district's

membership, a special election may still be required if a sufficient number of school

district electors petition the school district to hold a referendum.

Revenue Limit Adjustments

Although current law generally limits the total amount of revenue that a school

district may receive from general school aids and property taxes to the amount of

revenue increase allowed per pupil in the previous school year, a school board may

increase the school district's revenue limit by a specified amount if the school board

adopts a resolution to that effect and the district's electors approve the increase at

a referendum.

Under current law, the school board must call a special referendum at which the

electors vote to approve or reject the resolution. Current law also permits the school

board to schedule the referendum to be held concurrently with any primary election

or election that falls no sooner than 70 days after the date on which the board files

the resolution.

Loans from the State Trust Funds

Current law permits a school board to apply to the Board of Commissioners of

Public Lands for a loan to the school district from the state trust funds (the common

school fund, the normal school fund, the university fund, and the agricultural college

fund). With certain exceptions, in order for the school board of a unified school

district to obtain a state trust fund loan, the application must be approved by a

majority of the electors of the school district who vote on the application by

referendum at a special election. With certain exceptions, in order for the school

board of a first class city school district (the Milwaukee Public School District, or

MPS) or of a common or union high school district to obtain a state trust fund loan,

a majority of the legal voters of the school district who vote on the question must