LEGAL COMMENT
This comment Is published as a matter of q e n e r a l tntonnation to all W.A.$.B. members. Individual members w h e n conlronled, with a matter of the nature dIscussed in this comment l h o u l d contult local, school. district counsel. SCHOOL DISTRICT BORROWING Part I
I. I N T R O D U C T I O N .\. Apt,licabilit )' of Comment This comment, which will be written in three parts, applies specifically to common, unicm high school and unified school districts operating under the district system. In general, a school district operating under the city school system is subicct m fiscal control of the city council or other" special fiscal cmmol ~)dv as provided by la~" and is precluded, in general, from borrowing directh' as a sch~ol district under the statutes herein discussed. }3. General Li.titatio.s o . School District Borrou,i.g School districts, as in the case of other Wisconsin munich palities, have no tmwer to borrow except as such F,ower is expressly given bv statute or as may. be necessarily inferred [mm a statute cord:erring such prover. It is therefore imperative that all b,or,-owing by ~'hool districts should strictly comply with the statuto,y provisimas pursuant to which the l~orrowing is being tmdertaken. Under the provisions o[ Article XI Section 3. of the Wisconsin Constituti~m and statutes enacted pursuant thereto, no Wisconsin school district can at any time hea~mc indebted in excess ~f the folh~wing amounts f~,r p,esent ~n future obligati, ms: 1. For schoM districts which ~ffcr na less than grades 1 to ]2 and which at the time ~d' incurring the debt are eligible fi)r the highest level t,f state aids, 10~ of the valuation of taxable lmq~crty in the district as equalized for state purposes. 2. I:-r all other schonl districts, 5~ , f such equalized valtuation of the district. As a general pmlmsiti~m current and unpaid expenses of a .sch~,)l district are not considered as an indebtedness to be included in determining a district's total borrmving power if such current expenses are offset by m~mies and assets actualh' in the treasury c~r by current revenues (taxes) in process ~,t' "actual collectio~. C. Sml.tes AFl,lic.bie to School District I}orrou'i.g School district b(:rr,.3wing statutes max. for ¢~tt, purp(~ses. bc divided into two general classes: 1. Those providing for temporary or short term borrmving t~* meet the immediate expenses ~f maintaining and operating the district selma)Is. Sections 67.12(8) and 67.12(8a) Statutes. aIld 2. Those prm'iding for hmg term or more permanent b,,rr,)wiugs: Sections 67.01 to 67.11 (general obligation bonds)
November
1963
LEGAL COMMENT--
Section 67.12(12) (l(mg-tcrm lar(,missory n(,tes) and Chapter 25 (state trust fund hlans). 1I. T E M P O R A R Y B O I ~ R O W I N G I. Secti(m 67.08(8) Statutes l.lnder this section (,f tile statutes sch.,~l district Lx~ards may horr(~w re'racy to meet the immediate CXl~Cnscs of mainraining the sch(.ll" f(ir the current sch(.ll year. Loans made under this statute may not extend bey(rod S'cptcmhcr 1 of thc foll()win~ vcar and c~lnnt~t exceed in am(Junt .he-half (,{ th csti.nated rcccipts .t" the district F.r .,q~cration and rmiintcnancc of tile sch(.~ls filr the sch(x~l xc~lr in which tile loan is ma(tc The cstimllted .ccci{~ts must be ccrtified by tile State Supcrin ten(lent (if Public Instruction and the sch(.ll district clerk "Flat' loan may hc inllde ~lt any time after the tax f-r operation and nlaintcnancc t'(~l the current sch(J.'ll term has been voted t . hc c.llcctcd cm the ncxt tax roll. T h e loan should not cxceed the ~lin(~tlnt (~f direct taxes levied but unc(lllected by the sch.