2005 wisconsin act 25
This presentation is the property of its rightful owner.
Sponsored Links
1 / 11

2005 Wisconsin Act 25 PowerPoint PPT Presentation


  • 80 Views
  • Uploaded on
  • Presentation posted in: General

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?

Download Presentation

2005 Wisconsin Act 25

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


2005 wisconsin act 25

2005 Wisconsin Act 25

Equalization Aid Shared Cost Modification


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 modification1

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 modification2

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 modification3

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 modification4

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 modification5

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 modification6

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 modification7

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 modification8

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 modification9

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]


  • Login