(1)    Definition. In this section, “net school cost” is the sum of the net cost of the general fund and the net cost of the debt service fund for the previous school year, plus any aid received in the previous year under this section.

   (2)   Applicability of section. This section applies to transfers:

      (a)    Interdistrict.

         1.    By minority group pupils who reside in an attendance area in a school district where minority group pupils constitute 30 percent or more of the number of pupils enrolled in the school serving that attendance area and which the pupil would normally attend, from that district to a school in a school district where minority group pupils constitute less than 30 percent of the number of pupils enrolled in that school, as of May 1 of the prior year.

         2.    By nonminority group pupils who have reached the age of 4 on or before September 1 of the year they enter school and who reside in an attendance area in a school district where minority group pupils constitute less than 30 percent of the number of pupils enrolled in the school serving that attendance area and which the pupil would normally attend in the district, from that district to a school in a school district where minority group pupils constitute 30 percent or more of the number of pupils enrolled in that school, as of May 1 of the prior year.

      (b)    Intradistrict.

         1.    By minority group pupils who reside in an attendance area where minority group pupils constitute 30 percent or more of the number of pupils enrolled in the school serving that attendance area and which the pupil normally would attend, from that school to another school within the district where minority group pupils constitute less than 30 percent of the number of pupils enrolled in that school or to a school serving the entire district.

         2.    By nonminority group pupils who have reached the age of 4 on or before September 1 of the year they enter school and who reside in an attendance area where minority group pupils constitute less than 30 percent of the number of pupils enrolled in the school serving that attendance area and which the pupil normally would attend, from that school to another school within the district where minority group pupils constitute 30 percent or more of the number of pupils enrolled in that school or to a school serving the entire district.

   (3)   Transfer agreements. In accordance with sub. (2) and with the approval of the parents or guardian of the pupil:

      (a)    Interdistrict.

         1.    Subject to subd. 2., the school board of the district of residence and the school board of the district of attendance may enter into annual written agreements to permit a pupil to attend a public school outside the school district of residence.

         2.   

            a.    Except as provided in subd. 2. b., c., and d., beginning on July 14, 2015, no school board may enter into a written agreement with another school board under subd. 1.

            b.    A school board may continue to enter into an annual written agreement with another school board under subd. 1. on behalf of a pupil that attended a public school under a written agreement under subd. 1. in the 2015-16 school year.

            c.    A school board may enter into a written agreement with another school board under subd. 1., and may continue to enter into that written agreement, on behalf of a pupil that will attend a public school under that agreement in the 2015-16 school year.

            d.    The school board of a school district operating grades kindergarten through 8 and a school board operating a unified high school district may enter into an annual written agreement under subd. 1. on behalf of a pupil that attended a public school in the school district operating grades kindergarten through 8 in the 2015-16 school year.

      (b)    Intradistrict.

         1.    Except as provided in subd. 2., the school board of a district may not permit a pupil to attend a public school under this section that is within the district but that is outside the pupil’s attendance area.

         2.    The school board of a school district may permit a pupil to attend a public school under this section that is within the pupil’s district of residence but that is outside the pupil’s attendance area if the pupil attended a public school under this section that is within the pupil’s district of residence but that is outside the pupil’s attendance area in the 2015-16 school year.

   (4)   Other plans to reduce racial imbalance.

      (b)    Any school board that, prior to May 4, 1976, established a plan to reduce racial imbalance in the school district is eligible for state aid under sub. (6) (a) if the state superintendent approves the plan, provided the transfer pupil attended a public school in an attendance area other than the pupil’s attendance area under the plan in the 2015-16 school year.

   (5)   Part-time transfers.

      (a)    Except as provided in par. (b), part-time transfers for curriculum offerings are not permitted under this section.

      (b)    A pupil who, in the 2015-16 school year, attended on a part-time basis under this section a public school that is in a school district other than the pupil’s district of residence, or that is located in an attendance area other than the pupil’s attendance area, for the purpose of receiving curriculum offerings at that school may continue to attend on a part-time basis under this section a public school that is in a school district other than the pupil’s district of residence, or that is located in an attendance area other than the pupil’s attendance area, for the purpose of receiving curriculum offerings at that school. The department shall establish procedures for aid computations in such cases.

   (6)   State aids.

      (a)    Intradistrict transfer. Except as provided under pars. (am), (ar), and (as), the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to an amount determined as follows:

         1.    Divide the state aid received in the current school year under s. 121.08 by the membership used to compute state aid to the school district for the current school year.

         2.    Multiply the number of transfer pupils, as counted for membership purposes under s. 121.004 (7), by 0.25.

         3.    Multiply the quotient under subd. 1. by the product under subd. 2.

      (am)    Reduction of intradistrict transfer aid. The school district operating under ch. 119 may not receive aid under par. (a) for the number of pupils calculated as follows, if the calculation results in a positive number:

         1.    In the 2000-01 school year:

            a.    Subtract from 75 percent the percentage of pupils whose parents or guardians have provided the board of school directors with written consent to a pupil transfer to another attendance area.

            b.    Multiply the result under subd. 1. a. by the total number of transfer pupils under par. (a) in the current school year.

         2.    In the 2001-02 school year:

            a.    Subtract from 80 percent the percentage of pupils whose parents or guardians have provided the board of school directors with written consent to a pupil transfer to another attendance area.

            b.    Multiply the result under subd. 2. a. by the total number of transfer pupils under par. (a) in the current school year.

         3.    In the 2002-03 school year:

            a.    Subtract from 90 percent the percentage of pupils whose parents or guardians have provided the board of school directors with written consent to a pupil transfer to another attendance area.

            b.    Multiply the result under subd. 3. a. by the total number of transfer pupils under par. (a) in the current school year.

         4.    In the 2003-04 school year:

            a.    Subtract from 95 percent the percentage of pupils whose parents or guardians have provided the board of school directors with written consent to a pupil transfer to another attendance area.

            b.    Multiply the result under subd. 4. a. by the total number of transfer pupils under par. (a) in the current school year.

         5.    In the 2004-05 school year, the number of pupils whose parents or guardians have not provided the board of school directors with written consent to a pupil transfer to another attendance area.

         6.    In the 2005-06 school year and in each school year thereafter:

            a.    Subtract from 95 percent the percentage of pupils whose parents or guardians have provided the board of school directors with written consent to a pupil transfer to another attendance area.

            b.    Multiply the result under subd. 6. a. by the total number of transfer pupils under par. (a) in the current school year.

      (ar)    Hold harmless.

         1.    In the 1999-2000 school year, the department shall pay to the school district operating under ch. 119 the greater of the following:

            a.    The amount of aid received in the 1998-99 school year under par. (a).

            b.    The amount of aid to which the school district is entitled under par. (a).

         2.    Except as provided in subd. 3., in the 2000-01 school year and in each school year thereafter, the department shall pay to the school district operating under ch. 119 the greater of the following:

            a.    The amount of aid received in the 1998-99 school year under par. (a), less the reduction under par. (am).

            b.    The amount of aid to which the school district is entitled under par. (a), less the reduction under par. (am).

            c.    The amount of aid to which the school district is entitled under par. (as), less the reduction under par. (am).

         3.   

            a.    If one or more bonds are issued under s. 66.1333 (5r), subd. 2. does not apply beginning in the first fiscal year following certification by the secretary of administration to the department that the last principal and interest payment on the bonds has been made.

            b.    If no bonds are issued under s. 66.1333 (5r) by the date specified in that section, subd. 2. does not apply beginning in the first fiscal year following that date.

      (as)    Intradistrict transfer aid hold harmless. Subject to par. (ar):

         1.    In the 2015-16 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.875.

         2.    In the 2016-17 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.75.

         3.    In the 2017-18 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.625.

         4.    In the 2018-19 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.50.

         5.    In the 2019-20 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.375.

         6.    In the 2020-21 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.25.

         7.    In the 2021-22 school year, the school district of attendance of pupils transferring from one attendance area to another under subs. (3) (b) and (4) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (a).

            b.    The amount of aid to which the school district was entitled under par. (a) in the 2014-15 school year multiplied by 0.125.

      (b)    Interdistrict transfer.

         2.    Subject to par. (bm), in each school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) shall receive an amount equal to that produced by multiplying the number of pupils transferred into the school district under sub. (3) (a) in the previous school year by the amount produced by dividing the school district’s net school cost by the sum of the membership, plus the number of pupils transferred into the school district of attendance in the previous school year under sub. (3) (a).

         3.    If, in the 1994-95 school year, the number of pupils transferring from one school district to another under sub. (3) (a) constitute 5 percent or more of the total membership of the school district of attendance, in the 1995-96 school year the school district of attendance shall receive an amount equal to 1.2 multiplied by the amount to which the district is entitled under subd. 2.

      (bm)    Interdistrict transfer aid hold harmless.

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.875.

         2.    In the 2016-17 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.75.

         3.    In the 2017-18 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.625.

         4.    In the 2018-19 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.50.

         5.    In the 2019-20 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.375.

         6.    In the 2020-21 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.25.

         7.    In the 2021-22 school year, the school district of attendance of pupils transferring from one school district to another under sub. (3) (a) is entitled to the greater of the following:

            a.    The amount of aid to which the school district is entitled under par. (b).

            b.    The amount of aid to which the school district was entitled under par. (b) in the 2014-15 school year multiplied by 0.125.

      (c)    Special applications. If a school district finds that it has incurred costs beyond aids received because of the number of pupils which it has accepted as transfers under this section, it may apply to the department for supplementary aids under this subsection. If the department finds that the school district has incurred costs for which reimbursement has not been made under par. (b) 2. or 3., it shall supplement the state aids paid to the district under this section in an amount equal to the unreimbursed cost.

      (d)    Aid in lieu of tuition. Aid payments under this section shall be in lieu of tuition payments required under subch. V. Aid payments under this section shall not be made for interdistrict transfers under sub. (6) (b), if tuition payments are made from funds received by the school district of residence under P.L. Public Law 73-167″>73-167 and P.L. 81-874, as amended, for pupils so transferring from such district of residence.

      (e)    Sources of aid payments. State aid under this section shall be paid from the appropriation under s. 20.255 (2) (ac).

      (g)    Minority census tracts.

         1.    In this paragraph:

            a.    “Base year enrollment” means the number of pupils enrolled in the nonspecialty public schools located in minority census tracts in the 1984-85 school year.

            b.    “Minority census tract” means a census tract that has a nonwhite population of 20 percent or more, according to the most recent federal decennial census, and that is located in a school district containing a 1st class city.

         2.    Each pupil attending a nonspecialty public school in a minority census tract who is in excess of the base year enrollment shall be counted as an additional 0.2 pupil in membership for general aid under subch. II.

      (h)    Sunset. Beginning on July 14, 2015, a school district may not receive state aid under this section unless all of the following conditions are satisfied:

         1.    A pupil is attending a public school in the school district under one of the following:

            a.    A transfer agreement under sub. (3).

            b.    A plan that has been deemed a transfer agreement under sub. (4) (a) or approved under sub. (4) (b).

            c.    A part-time transfer under sub. (5).

         2.    The attendance of the pupil in the public school pursuant to the transfer agreement, plan, or part-time transfer described in subd. 1. complies with sub. (2).

         3.    One of the following conditions is satisfied:

            a.    The pupil described in subd. 1. attended a public school in the school district under one of the following in the 2015-16 school year: a transfer agreement under sub. (3); a plan that has been deemed a transfer agreement under sub. (4) (a) or approved under sub. (4) (b); or a part-time transfer under sub. (5).

            b.    The school district is a unified high school district and the pupil described in subd. 1. is attending the high school in the unified high school district under a transfer agreement under sub. (3) (a) 2. d.

   (6m)   Use of aid for lease or loan payments. If the board of directors of the school district operating under ch. 119 leases buildings or sites from the redevelopment authority of the city or borrows money from the redevelopment authority of the city under s. 119.16 (3) (c), it may use intradistrict transfer aid under sub. (6) to make lease payments or repay the loan. If the board of school directors decides to use the aid to make lease payments or repay the loan, it may request the department to remit the intradistrict transfer aid under sub. (6) to the redevelopment authority of the city of Milwaukee in an annual amount agreed to by the board of school directors and the department, and the department shall ensure that the aid remittance does not affect the amount determined to be received by the board of school directors as state aid under s. 121.08 for any other purpose.

   (7)   Transportation. Transportation shall be provided to pupils transferring schools under this section if required under subch. IV. Transportation for a pupil attending a public school under sub. (3) (a) outside the pupil’s school district of residence shall be provided pursuant to agreement between the school district of residence and the school district of attendance. If either the school district of residence or the school district of attendance operates a program of intradistrict transfers under sub. (3) (b), that school district shall be responsible for the cost of transportation. The school district may meet this responsibility either by contracting directly for provision of transportation or by reimbursing another school district for the cost of such a contract. Transportation for a pupil attending a public school under sub. (3) (b) outside his or her attendance area of residence may be provided by his or her school district. A school district providing transportation under this subsection may not claim transportation aid under subch. IV for pupils so transported. A school district that transports a pupil who moves outside his or her attendance district during the school year to the school in the pupil’s former attendance district may use intradistrict transfer aid under sub. (6) to pay the costs of transporting the pupil.

   (8)   Transferred pupils. Pupils transferring schools under this section shall be subject to the same rules and regulations as resident pupils and shall have the responsibilities, privileges, and rights of resident pupils in the school district or attendance area. Subject to this subsection, a pupil transferring schools under either sub. (3) (a) or (b) has the right to complete his or her education at the elementary, middle, or high school to which he or she transfers so long as full funding therefor is available under s. 20.255 (2) (ac).

   (9)   Planning councils.

      (a)    Annually on or before October 1, the school board of each school district lying wholly or partially within a county having a population of 750,000 or more shall organize a planning council with the school board of the school district within such county containing a 1st class city. Each planning council shall consist of 10 members, 5 members from the school district containing a 1st class city and 5 members from the school district which does not contain a 1st class city. The representatives of the planning council from each school district shall include, for terms of membership determined by the school board, 3 school board members, the school district administrator and one public member who resides in the school district. In the case of school districts containing a 1st class city, the school board may appoint the same persons as representatives to more than one planning council, and the school district administrator may select a representative to serve in his or her place on any planning council. Within 180 days after its appointment, each planning council shall make a recommendation to its appointing school boards on a cooperative program designed to facilitate transfers under sub. (3) (a) for the ensuing school term to promote cultural and racial integration. The recommendations shall include achievement and other relevant factors for the school boards to consider in permitting pupils to transfer for the purpose of facilitating, so far as possible, a balanced representation of the pupils who might transfer under sub. (3) (a). Within 90 days after receiving the recommendation of the planning council, each school board shall determine the extent to which its district will participate in the cooperative program. Upon making its determination, each school board shall disseminate information concerning the cooperative program to pupils and parents and guardians of pupils in the school district. Information shall be disseminated regarding the availability of transfers, the nature of the transportation to be provided, the courses and programs to be available to transfer pupils and any other aspects which the school board determines to be appropriate.

      (b)    Within 90 days after determining that its district will participate in transfers under this section, the school board of a district not subject to par. (a) shall make appointments to, and shall organize with other participating school districts, a planning council to make recommendations to facilitate cooperative programs.

      (c)    The obligation under par. (a) to organize planning councils shall apply only with regard to school terms for which full pupil transfer aids are appropriated under s. 20.255 (2) (ac) and planning council assistance funds are appropriated under s. 20.255 (1) (a).