AB 6 — Relating to: requiring a school board to spend at least 70 percent of its operating expenditures on direct classroom expenditures and annual pay increases for school administrators. (FE)

- 2026 LEGISLATURE LRBa0017/2LRB-1727/1 FFK:skw&cdcFFK:emw ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 6 February 19,4, 2025 - OfferedIntroduced by RepresentatRANKLIN.Representatives F RANKLIN , VOS, STEFFEN, BEHNKE , WICHGERS and ALLEN, cosponsored by SenatorOMCZYK .

AtReferred theto locationsCommittee indicated,on amendEducation. the bill as follows:

A N A CT to amend 118.24 (1), 119.44 (2) (c) and 121.085 (1);

to create 120.18 (1) (h) and 121.10 of the statutes;

relating to:

requiring a school board to spend at least 70 percent of its operating expenditures on direct classroom expenditures and annual pay increases for school administrators.

Analysis by the Legislative Reference Bureau This bill requires school boards to spend a minimum amount of operating expenditures on direct classroom expenditures and limits annual compensation increases for school administrators.

R EQUIREMENT TO SPEND 70PERCENT OF OPERATING EXPENDITURES ON DIRECT CLASSROOM COSTS The bill requires each school board to spend at least 70 percent of its operating expenditures in each school year on direct classroom expenditures.

Under the bill, “direct classroom expenditures” are expenditures for salaries and benefits of teachers and teacher aides, instructional supplies, tuition, athletic programs, and cocurricular activities.

Under the bill, if a school board fails to meet the 70 percent threshold in any school year, the school board must increase the amount spent on direct classroom expenditures by at least 2 percent in each succeeding school year until the 70 percent level is reached.

In addition, in the school year following a school year in which a school board fails to meet the 70 percent threshold, the bill directs the - 2026 Legislature - 2 - LRB-1727/1 FFK:emw ASSEMBLY BILL 6 SECTION 1 Department of Public Instruction to reduce the school district’s state aid payments by the difference between what the school board spent on direct classroom expenditures and the minimum that it should have spent on direct classroom expenditures and prohibits the school board from levying additional property taxes to compensate for the reduction.

Finally, if the total reduction in state aid and other state payments does not cover a school board’s excess expenditures, DPI must order the school board to reduce the property tax obligations of its taxpayers, including providing refunds to taxpayers who have already paid their annual taxes, by an amount that represents the amount of excess expenditures that have not been recovered through the state aid reductions.

L IMITATION ON ANNUAL COMPENSATION INCREASES FOR SCHOOL ADMINISTRATORS The bill limits the amount a school board may increase the total compensation paid to a school district administrator, business manager, or school principal, or an assistant to any of those positions (collectively, school administrators), to the average annual percentage increase in total compensation that the school board provided to teachers in the school district.

Under current law, the term of a school administrator contract is limited to no more than two years but may provide for additional one year extensions.

The pay increase limitation created in the bill first applies to contracts entered into, renewed, or modified on the date the bill becomes law.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SECTION 1.

118.24 (1) of the statutes is amended to read:

118.24 (1) A school board may employ a school district administrator, a business manager, and school principals and assistants to such persons.

The term of each employment contract may not exceed 2 years.

A contract for a term of 2 years may provide for one or more extensions of one year each.

In an employment contract under this subsection, a school board may not provide a school district administrator, business manager, or school principal, or an assistant to such a person, an annual percentage increase in total compensation that is greater than - 2026 Legislature - 3 - LRB-1727/1 FFK:emw ASSEMBLY BILL 6 SECTION 1 the average annual percentage increase in total compensation provided to teachers in the school district.

S ECTION 2.

119.44 (2) (c) of the statutes is amended to read:

119.44 (2) (c) The information specified under s.

120.18 (1) (gm), (h), and (i).

S ECTION 3.

120.18 (1) (h) of the statutes is created to read:

120.18 (1) (h) The percentage of the school district’s total operating expenditures that were spent during the school year on direct classroom expenditures, as defined in s.

121.10 (1) (a).

S ECTION 4.

121.085 (1) of the statutes is amended to read:

121.085 (1) The department shall make state aid adjustments under s.

ss.

118.51 (16) and (17) and 121.10 before making a reduction under s.

115.7915 (4m) (f), 118.40 (2r) (g) or (2x) (f), or 118.60 (4d) (b).

S ECTION 5.

121.10 of the statutes is created to read:

121.10 Classroom expenditures.