Contact: Sen. André Jacque, (608) 266-351
Jacque Bill to Save Schools Money, Eliminate Unnecessary Costs
MADISON, WI…Bi-partisan legislation authored by State Senator André Jacque (New Franken) and Representative Nate Gustafson (Omro) to reform the way school payments are made unanimously passed the Assembly Committee on State Affairs today on a vote of 10-0.
School districts currently receive equalized state aid in four installments: The first installment of 15% in September, a second and third payment of 25% in December and March, and the final 35% in June. This funding calendar has caused problems for school districts at the beginning of the school year. Frequently, school districts will take out a loan to meet expenses.
“By backloading the distribution of aid payments, many school districts are put in the position of having to engage in creative accounting to ensure expenses are met, such as taking out short term loans,” said Jacque. “While such loans can be quickly repaid when the next installment arrives, school districts must incur additional costs because of loan interest.”
Assembly Bill 354 will change each equalization aid payment amount to 25%. This allows school districts to better construct budgets and avoid or reduce the need for short-term borrowing and unnecessary interest payments.
“This bill effectively puts more money into Wisconsin classrooms by reducing the need for short term borrowing,” said Jacque. “This is a common-sense adjustment to how we fund our schools that has broad support on both sides of the political aisle.”
This bill has the backing of a large number of statewide educational groups, including the Wisconsin Education Association Council, the Wisconsin Association of School Boards and the Wisconsin Association of School Administrators. AB 354 now moves on to the full Assembly for a vote, and must pass both legislative chambers before being sent to the governor’s desk for final consideration.
