Nov. 19, 2002 e-newsletter

Fiscal Woes are International

The response to fiscal emergency has varied around the world,  according to "The Crisis in Funding Local Governments and Schools" conference Nov. 12 in Madison. In some countries, increased cooperation has helped deal with the problem, while in others wholesale consolidation of local governments has occurred.

In Sweden, there are one-tenth the number of municipalities as there used to be, and 95% of the disparity that remains between local governments is made up through equalization, Per Molander, research director of the Center for Business and Policy Studies, Stockholm, told the conference.

Stefano Piperno, of the Instituto di Ricerche Economico-Socialidei Piedmonte, Turin, said Italy has not been able to promote more cooperation among its 8,100 local governments, but uses a value added tax for equalization.

In Canada, local government mergers have occurred in Nova Scotia, New Brunswick, Ontario and Quebec, economist Harry Kitchen of Trent University, Peterborough, Ont., said. In some places, taxes have fallen and in others they have not been reduced, he said.

Across the United States, state governments are in the midst of a full-blown fiscal crisis, Howard Chernick of City University of New York, told the conference.

UW-Madison Prof. Andrew Reschovsky underscored the magnitude of Wisconsin's fiscal crisis with a Power Point presentation at the conference that included these numbers:

Metro Shells Explained

How can we recognize the importance of regional economies to Wisconsin and begin to plot a cooperative course for economic development, governmental services and taxpayer equity?  Surely, that's a question that can't be answered all at once, and whose answers will vary across Wisconsin. 

To provide the flexibility local government needs to serve our citizens on an areawide basis as the need arises  — and to plan on an areawide basis   — the Wisconsin Alliance of Cities is proposing creation of 14 "shells" that would enable Wisconsin's  metropolitan areas to coordinate data collection and  assess the strengths and weaknesses of our economic regions. If citizens chose to begin receiving some services on a regional basis, the shells could provide a tailor-made mechanism to provide those services, without infringing on local control of local issues.

In Portland, Ore., for example, Portland Metro provides transportation and land-use planning and oversees regional garbage disposal and recycling  programs; manages regional parks, greenspace and the Oregon Zoo; and oversees operation of the Oregon Convention Center, the Portland Center for the Performing Arts and the Expo Center. In keeping with our conviction that all levels of government need to operate democratically, we seek a structure for Wisconsin that, like Portland Metro, is based on the principle of one person, one vote.

To see our entire agenda for 2003-04 click here. To see our metropolitan shell proposal, click here. And join us in helping build strong communities and strong economies across Wisconsin.

Metro counties that would comprise a "shell" Region Counties 2002 Popl. Total Shrd. Rev. Superior-Duluth Douglas 43,606 $ 13,313,406 Twin Cities East Pierce, St. Croix 103,559 11,892,006 Chippewa Valley Eau Claire, Chippewa 150,930 28,939,001 La Crosse La Crosse 108,331 21,935,215 Central Wis. Marathon, Portage, Wood 272,191 50,210,355 Green Bay Brown 231,432 34,566,587 Appleton-Oshkosh Calumet, Outagamie, Winnebago 365,215 59,481,183 Fond du Lac Fond du Lac 98,476 15,794,405 Sheboygan Sheboygan 114,027 21,048,200 Southeast Milwaukee, Waukesha, Ozaukee, Washington 1,510,427 375,393,990 Racine Racine 190,593 40,342,651 Kenosha Kenosha 152,624 24,102,429 Madison Dane 436,899 32,903,097 Beloit-Janesville Rock 154,100 34,971,845 Total 23 counties 3,932,410 764,894,370 % of state total 31.9% 69.5% 74.3%

Where the 2002-03 State Tax Dollar Goes _____________________________________________ Data: Leg. Fiscal Bureau                                      Chart: Wis. Alliance of Cities By popular demand, here's an updated version of the chart we've distributed over the last several years. When Gov. Scott McCallum last Jan. 22 proposed eliminating state shared revenue, he said 60% of state revenue now goes back to the local level, but he didn't say where exactly it goes. The chart at left shows where. If you would like an Excel spreadsheet of the pie chart, e-mail Rich Eggleston at rich@wiscities.org.   Sheehy Task Force Seeks Public Input The governor's task force on state and local government, chaired by Milwaukee business leader Tim Sheehy, has identified what major state and local issues are most pressing. Those issues are shared revenue; local and regional cooperation; barriers to efficient, quality service; local and regional economic growth; inventorying state property; and civic entrepreneurship. See the draft recommendations here. The task force is looking for comment on them, and a comment form is available here. Comprehensive Planning Grants Popular The state Office of Land Information Services has received $4.6 million in applications for the $3 million available for comprehensive planning grants for 2003. The applications  include 25 from multiple jurisdictions, and overall include 10 counties, 32 cities, 56 villages and 221 towns. The entire list of applicants can be obtained (in Adobe Acrobat format) here.

News Briefs West Bend's  Common Council Nov. 3 voted 6-2 against adopting a smoking ban in restaurants supported by the Washington County Initiative for Smoke-Free Environments. It was the first time a community in the state defeated an anti-smoking ordinance. See the Milwaukree Journal Sentinel story here. But in neighboring Ozaukee County, a community health survey found  that 70% of that county's residents want the government to ban smoking in restaurants. See that story here. Gov.-elect Jim Doyle has questions about a planned 240-mile power transmission line across northern Wisconsin, whose anticipated cost has more than doubled to $395 million.  "I know that the line is needed, but exactly how it's going to be done and what the cost will be are real open questions again," Doyle said after an hour-long meeting with Gov. Scott McCallum in the governor's office.See the AP story here. A new fight over suburban sprawl may loom in Wisconsin due to Comm 83, which allows private sewer systems to be built even where the soil is only 6 to 24 inches deep. Most of the rule has taken effect, but counties like Racine County chose to opt out of certain provisions until this Jan. 1. See the story in the Racine Journal Times here. The Wisconsin Supreme Court in September upheld the rule, the Daily Reporter says. See that story here. Menomonee Falls Village President Joe Greco says he is on a GOP "hit list" because he vocally challenged Gov. Scott McCallum's plan to eliminate state shared revenues, the Milwaukee Journal Sentinel reported Nov. 14. See the story here. In the late 1800s, city workers in Milwaukee buried more than 500 miles of ductwork under the streets to carry telegraph wires. Now, the city is adding equipment  to create a privately run network that will be used for everything from E-government initiatives to transmitting mug shots and public-health information in an emergency. Milwaukee's  Common Council approved a resolution supporting plans for a coal-fired plant expansion in Oak Creek. But the City of Oak Creek came out against the coal-fired plant expansion. See the story here.

THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881