Under current law, the Department of Administration (DOA) administers a
program that provides low-income energy assistance to eligible households,
including households with incomes of less than 60 percent of the statewide median
household income and households composed entirely of individuals receiving Aid to
Families with Dependent Children or Supplemental Security Income. This bill
provides that for purposes of determining eligibility for low-income energy
assistance, the income of a household that includes a married couple is reduced by
$10,000. This bill also makes ineligible for low-income energy assistance a
household with assets that exceed $2,000 in cash equity value or with a vehicle

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having an equity value of $10,000 or greater, unless a member of the household is
disabled or aged 62 or older. Finally, under the bill, DOA may not notify a household
of the household's eligibility for low-income energy assistance more than twice in a
12-month period.

Under current law, DOA may make grants or loans, directly or through agents
designated by DOA, to persons or families of low and moderate income to defray
housing costs, including utility costs, and may make grants to community-based
organizations, organizations operated for profit, or housing authorities to improve
the ability of these entities to provide housing opportunities for persons or families
of low and moderate income.

This bill requires DOA to impose limits on eligibility and housing for families
and persons of low and moderate income seeking housing assistance directly or
indirectly through DOA, unless the person is, or the family includes, a person who
is disabled or aged 62 or older. Under the requirement, persons or families of low and
moderate income who receive assistance with housing, housing costs, utility-related
costs, or grants or loans from any project or program administered by DOA as
described above, are subject to the following limitations:

1. A person or family of low or moderate income is restricted to housing in which
the square footage is less than 50 percent of the average square footage for a rental
unit of average rental value in the county in which the person or family resides. In
order to satisfy this requirement, DOA may require that more than two unrelated
persons or families of low or moderate income be housed in one housing unit.

2. With two exceptions, persons or families of low or moderate income with
assets that exceed $2,000 in cash equity value or with a vehicle having an equity
value of $10,000 or greater may not receive housing or assistance with housing costs
or utility-related costs from DOA.

3. For purposes of determining eligibility for low-income housing assistance,
the income of any individual who is not related to the applicant and who is living in
the applicant's home at the time of the application must be included in the applicant's
income.

If DOA determines that it may not implement the limitations and prohibitions
established under the bill without a waiver of federal law from the federal
Department of Housing and Urban Development (HUD) and that a waiver of federal
law is available, DOA must apply for and obtain a waiver from HUD before it may
implement the limitations.

Under current law, the Wisconsin Housing and Economic Development
Authority (WHEDA) administers several programs that provide assistance to
persons and families of low and moderate income in obtaining housing. Eligibility
for the programs is determined under the Wisconsin statutes and under federal law,
including the Housing Choice Voucher Program administered by HUD. Funding for
these programs is provided from a number of sources, including bonds issued by
WHEDA under its statutory authority and from the federal government.

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This bill requires WHEDA to impose the following limits on eligibility for
families and persons of low and moderate income seeking housing assistance directly
or indirectly through WHEDA:

1. No person may receive housing assistance from HUD through WHEDA
unless the person is disabled or aged 62 or older. The bill defines "disabled" to mean
blind as established under federal law or disabled as established under federal law.

2. Persons or families of low and moderate income who receive housing or
housing assistance directly or indirectly from WHEDA are subject to the following
limitations, unless the person is, or the family includes, a person who is disabled or
aged 62 or older:

a. A person or family of low or moderate income must be restricted to housing
in which the square footage is less than 50 percent of the average square footage for
a rental unit of average rental value in the county in which the person or family
resides. In order to satisfy this requirement, WHEDA may require that more than
two unrelated persons or families of low or moderate income be housed in one
housing unit.

b. With two exceptions, persons or families of low or moderate income with
assets that exceed $2,000 in cash equity value or with a vehicle having an equity
value of $10,000 or greater may not receive housing or housing assistance from
WHEDA.

c. For purposes of determining eligibility for housing or housing assistance
from WHEDA, the income of any individual who is not related to the applicant and
who is living in the applicant's home at the time of the application must be included
in the applicant's income.

If WHEDA determines that it may not implement the limitations and
prohibitions established under the bill without a waiver of federal law from HUD and
that a waiver of federal law is available, WHEDA must apply for and obtain a waiver
from HUD before it may implement the limitations.

Under federal law, the earned income tax credit (EITC) is a refundable tax
credit for low-income workers. If the amount of the claim exceeds the worker's tax
liability, the claimant receives a check for the excess amount from the Internal
Revenue Service. The amount of the credit for which a claimant is eligible is based,
in part, on whether the claimant has no qualifying children, one qualifying child, or
more than one qualifying child.

Under current law, the refundable Wisconsin EITC may be claimed in an
amount equal to a certain percentage of the federal basic EITC. To be eligible for the
Wisconsin EITC, an individual must have one or more qualifying children. The
Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one
qualifying child, 11 percent of the federal credit if the claimant has two qualifying
children, and 34 percent of the federal credit if the claimant has three or more
qualifying children.

Under this bill, no new claims under the Wisconsin EITC may be filed for a
taxable year that begins after December 31, 2014.

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Under current law, the homestead tax credit may be claimed by an individual
who is at least 18 years of age and who is not, in general, claimed as a dependent for
federal income tax purposes in the year to which the claim relates. Under this bill,
for claims filed for taxable years that begin after December 31, 2014, a claimant must
be at least 55 years old to claim the homestead tax credit.

Generally under current law, a local housing authority may acquire, lease, and
operate approved housing projects, and may provide for the construction,
reconstruction, improvement, alteration, or repair of any housing project. Under
this bill, after the effective date of the bill, a local housing authority may not provide
for the construction of low-income housing unless it is for individuals age 55 and
above. In addition, the bill prohibits a local housing authority from requesting more
money for low-income housing.

Under the parental choice programs, a pupil who is a member of a family that
has a total family income that does not exceed 3.0 times the poverty level may attend
a private school at state expense under certain conditions. When verifying a family's
income, the Department of Revenue must first deduct $7,000. This bill increases the
deduction to $30,000.

This bill prohibits a school board from providing to a pupil's parent or guardian
more than two notices describing eligibility criteria for the school lunch program in
any school year.

Under current law, the Higher Educational Aids Board (HEAB) awards certain
grants based on financial need. Those grants include Wisconsin higher education
grants for students enrolled in public institutions of higher education or tribal
colleges in this state (WHEG grants), tuition grants for students enrolled in private
institutions of higher education in this state (tuition grants), Indian student
assistance grants to assist Indian students who are residents of this state (Indian
student assistance grants), and minority undergraduate retention grants to assist
minority students enrolled in private institutions of higher education or technical
colleges in this state (minority undergraduate retention grants).

This bill eliminates WHEG grants, tuition grants, Indian student assistance
grants, and minority undergraduate retention grants, transfers the unencumbered
balances in the appropriations for those grants to the Board of Regents of the
University of Wisconsin (UW) System (Board of Regents), and directs the Board of
Regents to use the amount so transferred to reduce the tuition charged to enroll in
educational programs in the UW System.

The bill also prohibits HEAB from awarding any state financial assistance, and
the Board of Regents from awarding any scholarship, that is based on financial need
to a student under 22 years of age who is a dependent of his or her parents unless
the calculation of the student's financial need includes consideration of the income
and assets of both of the student's parents. In addition, the bill requires state

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financial assistance awarded by HEAB and scholarship moneys awarded by the
Board of Regents to be used only for tuition, fees, books, and educational supplies.