2005 wisconsin act 25
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2005 Wisconsin Act 25 PowerPoint PPT Presentation


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2005 Wisconsin Act 25. Equalization Aid Shared Cost Modification. Shared Cost Modification. Wisconsin Act 25 potentially modifies: 2005-06 Shared Cost for Aid Paid in 2006-07 2006-07 Shared Cost for Aid Paid in 2007-08. Shared Cost Modification. When is Shared Cost Modified?

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2005 Wisconsin Act 25

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2005 Wisconsin Act 25

Equalization Aid Shared Cost Modification


Shared Cost Modification

  • Wisconsin Act 25 potentially modifies:

    • 2005-06 Shared Cost for Aid Paid in 2006-07

    • 2006-07 Shared Cost for Aid Paid in 2007-08


Shared Cost Modification

  • When is Shared Cost Modified?

    • when the school district uses fund balance to pay the school district’s unfunded pension liability under the Wisconsin Retirement System

      AND

    • the result of excluding such expenditures from shared cost is an increase in state aid paid to the school district under State Statute 121.08


Shared Cost Modification

  • What payments may be excluded from shared cost?

    • Any payments made from fund balance that reduce the unfunded pension liability under the Wisconsin Retirement System including:

      • Payments made directly to WRS

      • Debt payments as a result of the district borrowing money to pay off the unfunded liability


Shared Cost Modification

  • Which districts will likely benefit from this law change?

    • Districts that are considered “negatively aided” on the second or third tiers of the equalization aid formula

      (For negatively aided districts, a decrease in shared cost typically results in an increase in equalization aid.)


Shared Cost Modification

  • What are the school district responsibilities?

    • Maintain minutes of a school board meeting in 2005-06 and/or 2006-07 that reflect action taken by the Board that the district is using fund balance to pay the school district’s unfunded pension liability under the Wisconsin Retirement System.


Shared Cost Modification

  • Report on the 2005-06 and/or 2006-07 PI 1505AC report, the total expenditures made either directly to WRS or for debt paying off the unfunded liability for the year.

  • Check the box on the PI 1505AC that indicates the district used fund balance to make these payments


Shared Cost Modification

  • What are the school district auditor responsibilities?

    • Request from the district, documentation that the board has taken action and the reported payments have been made.

    • Attest to this information on the PI 1506AC.


Shared Cost Modification

  • What are the school financial services team responsibilities?

    • Subtract eligible expenses from shared cost only to the point that it increases district aid eligibility when calculating equalization aid.

      • Positively aided districts will want to continue having all eligible expenses included.

      • Negatively aided districts will want eligible expenses excluded to the point aid eligibility is increased.


Shared Cost Modification

  • Update the current PI 1505 AC to include:

    • A line to report the district’s total expenditures made to reduce the district’s unfunded pension liability under the Wisconsin Retirement System;

    • A checkbox to for districts to check if fund balance was used to make these payments;

    • New language on the certification page to reflect the district’s attestation that the district incurred unfunded liability payment expenditures and used fund balance to do so.


Shared Cost Modification

  • Please contact any one of the following individuals with questions.

    Lori Ames 608-266-3464 [email protected]

    Brad Adams 608-267-2752 [email protected]

    Karen Kucharz 608-267-9707 [email protected]


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