SB 838

This bill ends reductions to state aid paid to school districts for per pupil

payments made under the Racine Parental Choice Program, the Wisconsin Parental

Choice Program, and the Special Needs Scholarship Program beginning with

payments made for pupils who begin in these programs in the 2024-25 school year.

Under the bill, current law applies to payments made under the RPCP, WPCP, and

SNSP for pupils who began participating in these programs before July 1, 2024

(legacy pupils).

The Racine and Wisconsin Parental Choice Programs and the Special Needs

Scholarship Program

Under current law, per pupil payments to private schools participating in the

RPCP, WPCP, and SNSP are paid from sum sufficient appropriations, ensuring that

full payments are made to private schools for pupils participating in each of the

programs. Current law also requires the Department of Public Instruction to reduce

each school district's equalization aid by an amount equal to the total per pupil

payments paid to private schools participating in the RPCP, WPCP, and SNSP that

are attributable to pupils residing in that school district. If a school district does not

receive equalization aid sufficient to cover the aid reduction, the balance is reduced

from other state aid received by the school district. These aid reductions are

deposited in the general fund. In general, these reductions reimburse the general

fund for per pupil payments made under the RPCP, WPCP, and SNSP. Under current

law, pupils who participated in the RPCP or WPCP before the 2015-16 school year

are not included for purposes of the equalization aid reduction.

The bill eliminates reductions to equalization aid for per pupil payments made

under the RPCP, WPCP, and SNSP for pupils who begin participating in the RPCP,

WPCP, or SNSP in the 2024-25 school year.

Under current law, a pupil participating in the RPCP, WPCP, or SNSP for whom

a per pupil payment was made in the previous year is included in the pupil's resident

school district's membership for purposes of calculating general state aids. A school

district's membership in the previous school year is a factor used to calculate

equalization aid. Current law also allows a school district to increase its revenue

limit for a school year by the amount of the aid reduction described above for that

school year. Under the bill, only legacy pupils for whom a per pupil payment is made

in the previous year are counted for purposes of calculating state aid.

The Milwaukee Parental Choice Program

Under current law, payments to private schools participating in the MPCP are

paid from a sum sufficient appropriation, ensuring that full payments are made to

private schools for all pupils participating in the MPCP. Current law also requires

DPI to reduce the general state aid for Milwaukee Public Schools by a percentage of

the amount paid to private schools participating in the MPCP and deposit the

reduction in the general fund. Under revenue limits, MPS may levy property taxes