December 18, 2001 e-newsletter
December 18, 2001 e-newsletter
Our Proactive Position
Differs
Morris Andrews Plan Revealed
By Rich Eggleston
With Gov. Scott McCallum now projecting the state's budget deficit at $1.3 billion or more, the Morris Andrews Plan to replace shared revenues with a county sales tax takes on increased significance. Yet the Andrews Plan remains officially secret. Here is what we've gleaned from Dennis Chaptman of the Milwaukee Journal Sentinel and folks both inside and outside the Alliance who have received visits from Andrews. Much of this has already been in print. Some has not been. The Andrews Plan may be in flux; his presentations certainly vary from community to community. (Also, Milwaukee County's Intergovernmental Cooperation Council yesterday passed a resolution opposing the plan. To see it, click here.)
The Basic Plan :
eliminate $1.02 billion worth of shared revenues to help reduce the state government's budget deficit. This could be made up statewide with a 1.6 percent sales tax increase. But Andrews is adamant that Gov. Scott McCallum will not raise state taxes. However, the plan would ...
...allow counties to impose a sales tax of up to 1.6 cents to make up for lost county and local shared revenue, with replacement money going to cities, villages, towns and the county in the same proportion as current shared revenue.
also allow counties that choose to increase the sales tax more than is required to make up for lost shared revenue to keep half the money, with the remainder to be distributed to local governments on a per-capita basis.
provide a permanently frozen hold harmless payment to counties that can't make up the loss in shared revenue through a 1.6 cent sales tax. My projections indicate this would cost $235 million in 2002. The state is projecting a higher amount, but it is using 2000 data.
Provide a $100 million increase in school
aids, all or most of which would be directed at special education, low income or
English-as-a-second-language kids.
Variations on the Package:
Use across-the-board cuts to solve the state's budget problem, with agencies exempt from the cuts increasing everyone else's cut. This has been described as an option in several visits.
Bond for money to replace shared revenues the first year the plan is in effect.
Concerns with the 1.6-cent sales tax:
It would result in a sales tax increase of .47% in Dane County, but 1.5% in Polk County, for example. The impact could be especially troubling for retailers in counties along the Illinois, Iowa, Minnesota and Michigan borders. But if county officials along our borders chose not to impose the sales tax, the result would be an $8.98 per $1,000 tax increase in Superior, a $15.95 increase in Beloit, an $11.30 increase in Marinette, and a $5.46 increase in La Crosse.
In Waukesha County, a .35% sales tax increase would make up for lost shared revenue; in Milwaukee County, without a hold harmless, the required increase would be 2.9%. If counties in southeastern Wisconsin levied the maximum 1.6 cent sales tax, the average property tax rate would remain unchanged in Milwaukee (with the help of a $156.5 million hold harmless) while the average tax rate in Waukesha County would decline $1.32 per $1,000; in Ozaukee County it would decline 91 cents and in Washington County it would decline 90 cents.
The plan would freeze or -- as the above bullet demonstrates -- worsen existing property tax rate disparities among neighboring communities throughout the state.
County officials may be just as skittish about raising taxes as state officials, leaving cities and villages with no place to turn other than the property tax.
A county sales tax would not produce enough revenue in 2002 to make up for lost shared revenue.
Courts have ruled that a local government cannot be required to use its tax sources to support the state government or another local government. Owen v. Donald (160 Wis 21 [1915]), Buse v. Smith (74 Wis 2d 550[1976]).
Hold-harmless provisions don't have great longevity
at the Capitol. History indicates that "forever" can last only 10 years,
as was the case in the 1970s for make-up shared revenue to compensate for loss of
the machinery and equipment tax base. A plan that is property tax neutral today could
represent a tremendous shift of the cost of government onto the property tax tomorrow.
The silver lining:
Legislative leaders of both political parties have pronounced the Morris Andrews Plan dead on arrival in the Legislature.
A county that does not want to be mandated to pass tax revenue to cities, villages and towns could very well sue to block the plan.
The Alliance Alternative:
The Alliance of Cities responded to the Andrews Plan with suggestions that emphasize regional solutions to both state and local budget problems.
In a letter to Gov. Scott McCallum, Green Bay Mayor Paul F. Jadin, the Alliance's president, said potential tools to avoid putting undue burden on urban property taxpayers include:
Trashing the Recycling Law
Recycling Fee Challenged
A hearing is set for Thursday in U.S. District Court in Madison on the National Solid Wastes Management Association's crusade to keep Wisconsin a super-cheap place for other states to dump their garbage.
The group filed suite Nov. 30 challenging a $2.70increase in the state "tipping fee" on garbage disposal -- aimed at financing recycling programs --as unconstitutional. The hearing before U.S. District Judge John Shabaz is on the trash companies' request for an injunction on the increased fee, which is to take effect Jan. 1.
The garbage haulers say they're in favor of recycling but feel duty-bound to uphold the principle that garbage is as important a commodity in interstate commerce as food, automobiles and holiday fruit baskets. Anybody know another state where we can recycle their press release? For the Journal Sentinel story on the brouhaha, look here.
Water System Innovation
Please Contact DNR Board on ASR
In a resolution adopted Nov. 30, the
ASR involves the storage of treated drinking water underground during low-demand periods. When demand on a water supply is high, the water can be pumped out, eliminating the need for costly water plant expansions. The process has worked for two years in Oak Creek, and Green Bay wants to try it too. But the DNR wants to study the process more, which could trigger unnecessary water plant expansion.
To learn more about ASR, look
|
Metric Road Signs Banned in DOT Draft Rules "Traffic Control Devices with metric messages shall not be used on any streets or highways," says the DOT's new draft of the manual governing road signs and stop lights. Other things DOT doesn't like:
Please forward this item to someone who understands what this is all about. Maybe your public works department. Thanks. For a copy of the draft rules, go here. For more information, contact matt.rauch@dot.state.wi.us. The DOT would appreciate comments by Jan. 12. |
Auditors Cruise the Web
Wisconsin’s Legislative Audit Bureau cruised the Internet to see how local governments are doing with their web pages, e-government offerings, etc.
The audit found that among 71 local governments serving populations over25,000, 69 have launched Internet sites, as have 54 of 77 local governments serving populations between 10,000 and 25,000
But fewer offer bill-paying options on line, and
open-record offerings online also are spotty, the Audit Bureau found. For the report, go
Gail and Ed's Activities Report
November
December
Bills To Watch
To help you keep informed, the bill number on the list below is a link to the bill history, which in turn includes a link to the text of the measure. The bill sponsor's name is an e-mail link which allows you to express your opinion or seek further information. Click on either. And of course, you can ask us for information on any of these measures any time. We'll try to keep you informed of pending action on bills and other Alliance issues in the "Upcoming Events" section at the bottom of this and future newsletters.
Bills we'll be watching -- and in many cases lobbying-- include:
SB 185,
SB 248, a
telephone industry bill introduced Sept. 20 by
SB 267, by the Joint Committee for Review of Administrative Rules, limiting local flexibility in providing emergency medical services.
SB 350, by Sen. Roger Breske (D-Eland), giving all towns village powers.
AJR 10, by Rep. Mark Pettis (R-Hertel), a constitutional amendment to limit property tax increases by cities, villages, towns and counties for individual parcels of property.
AJR 50, by Rep. Glenn Grothman (R-West Bend), a constitutional amendment to restrict the state's ability to impose regional or geographically selective taxes.
AB 35, by Rep. Jeff Stone (R-Greenfield),changing the bonding requirements for city, village and county officers.
AB 113, by Rep. Scott Gunderson(R-Union Grove), prohibiting local residency requirements.
AB 399,
by Rep. Donald Friske(R-Merrill), would
exempt cities, towns, villages and counties from paying the state gastax. It was amended
and endorsed as amended by the Assembly Transportation Committee Sept.20. Repeal of the
state gas tax for other levels of government is one of the Alliance of Cities' pro-active
issues. For more, look
AB 490, by Rep. Jeff Stone (R-Greenfield)would phase in, over a 10-year period, the transfer to the state transportation fund of all sales tax revenue from the sale of automobiles and auto parts.
AB 494, by Rep. Scott Gunderson (R-Union Grove), prohibiting cities and villages from approving annexations of land in another county.
AB 501,
this session's urban towns bill, is again sponsored by
AB 510. The compromise TIF legislation passed the Assembly 93-3 Oct. 23. It was produced as a result of negotiations led by the Wisconsin Economic Development Association. It eliminates some of the damaging provisions of the legislation that came out of former Gov. Tommy Thompson's TIF working group. The compromise is sponsored by Rep. Michael "Mickey" Lehman (R-Hartford).
AB 518,
introduced by Rep. Neal Kudzu
(R-Elkhorn), is the companion bill to
AB 524, by the Joint Committee for Review of Administrative Rules, limiting local flexibility in providing emergency medical services.
AB 558, by the Assembly Veterans Affairs Committee, benefits for those called to active duty, amended in committee to allow local governments to make up the difference between military pay and civilian pay, Signed into law.
AB 584, by Rep. Tim Hoven (R-Port Washington), on utility shared revenue payments. Adopted 96-2 in the Assembly Nov. 6.
AB 601, by Rep. Greg Huber,regional park districts.
AB 612, by Rep. Julie Lassa (D-Plover), to allow local governments to provide health insurance benefits to retired officers.
Upcoming
Events
Jan.
8 Leg. Cncl Navigable
Waters Cmte.
Jan.10 Partners in Local
Govt., City Cnty Bldg,Madison, 10:30 a.m.
Jan.
11 Centl.
Wis. Muni. Execs Candidate Interviews, UW Marshfield.
Feb.7-8 Alliance mtg, Wis. Metropatterns
Conference. Marquette University.
June 13-14 Alliance meeting, Madison, in conjunction
with the...
June 14-18 U.S. Conference of Mayors, Madison
THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881
