AB 835

School district revenue limits

Current law generally limits the total amount of revenue per pupil that a school district may receive from general school aids and property taxes in a school year to the amount of revenue allowed per pupil in the previous school year plus a per pupil adjustment, if any, as provided by law. Until 2425, current law provides a $325 per pupil adjustment in each school year. Under the bill, beginning in the 2026-27 school year, the per pupil adjustment is the per pupil increase for the previous school year as adjusted for any increase in the consumer price index.

Reimbursement for special education costs

The bill also changes the rate at which the state reimburses school boards, operators of independent charter schools, cooperative educational service agencies (CESAs), and county children with disabilities education boards (CCDEBs) for costs incurred to provide special education and related services to children with disabilities and for school age parents programs (eligible costs). Under current law, the state reimburses the full cost of special education for children in hospitals and convalescent homes for orthopedically disabled children. After those costs are paid, the state reimburses remaining eligible costs from the amount remaining in the appropriation account at a rate that distributes the full amount appropriated. The Legislative Fiscal Bureau estimates that the reimbursement rate will be 42 percent in the 2025-26 school year and 45 percent in the 2026-27 school year.

The bill changes the appropriation to a sum sufficient and provides that, beginning in the 2025-26 school year, after full payment of hospital and convalescent home costs, the remaining costs are reimbursed at 90 percent of eligible costs.

Currently, the Department of Public Instruction provides 1) special education aid to school districts, independent charter schools, CESAs, and CCDEBs; 2) aid to school districts, CESAs, and CCDEBs for providing physical or mental health treatment services to private school and tribal school pupils; and 3) aid for school age parents programs to school districts only.

Teacher preparatory program grant program

Finally, the bill creates a grant program administered by the Higher Educational Aids Board under which HEAB awards grants to students enrolled in the teacher preparatory program of an institution of higher education. Grant moneys may be used to pay 1) the student’s tuition and fees and 2) any expense incurred in connection with obtaining a license to teach issued by the Department of Public Instruction, including any examination or licensing fee. However, the grant amount for the payment of tuition and fees is limited to the amount of tuition and segregated fees charged to a resident undergraduate student at the University of Wisconsin-Madison for an equivalent program. HEAB also may not award a grant to a student unless the student enters into a written agreement to work in this state as a teacher in an elementary or secondary school for at least four years after receiving a bachelor’s degree.