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March 5, 2003 e-newsletter

In this issue:

State budget highlights our Mar. 20-21 meeting

Kenosha County Tax Subsidies

Greco Is Honorary Mayor

Lobbying Report

News Briefs

Upcoming Events

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Budget Realities
Cities' Position Precarious in Delicate Budget

By Rich Eggleston

Gov. Jim Doyle's precariously balanced state budget bill cuts shared revenue to municipalities $70 million, on top of a previously scheduled $20 million cut. How to weather those cuts without raising property taxes is a challenge being faced in city halls across Wisconsin.

But to cut local aid no more than $70 million in light of a $3.2 billion budget deficit, the governor relied on a series of controversial moves, which have earned Doyle some new opposition both inside and outside the Capitol.

State Budget on
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March 20-21
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Many of the critics are expounding budget theory and pushing their own agendas as though (a) there were no $3.2 billion state budget deficit with which to cope or (b) the rest of the state budget is where cuts should occur that the programs in their own back yards should not be touched.

Among the funding mechanisms to which critics are applying these principles:

blkball.gif (916 bytes) $500 million from the transportation fund for school aids and shared revenues.
blkball.gif (916 bytes) $200 million  from a medical malpractice fund for Medicaid.
blkball.gif (916 bytes) $434 million in retroactive Medicaid payments from the feds.
blkball.gif (916 bytes) $237 million in new revenue from Indian gaming compacts.

The response to the governor's use of those monies to balance the state budget has been unenthusiastic on the part of the transportation, physicians' and tavern lobbies, and federal bureaucrats. And Republican lawmakers don't like the gaming compacts.

But if a single one of those budget-balancing devices falls through, state government has a major problem. Might lawmakers seek the same easy way out that former Gov. Scott McCallum chose last year? Stay tuned.

For the text of Doyle's budget address, look here. For a budget summary and other budget documents (in Adobe Acrobat format), look here.

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Double Whammy in Kenosha County
City, Village Subsidize Neighbors, Study Finds

The City of Kenosha is providing a net subsidy of nearly $795,000 a year to other communities in Kenosha County and the Village of Pleasant Prairie is subsidizing its neighbors to the tune of $3.5 million a year, a study has found.

That's their contribution to the cost of sheriff's patrols, sheriff's investigations, drug enforcement activities, highway maintenance, emergency dispatch and planning and zoning, over and above the benefits they receive, Phase I of a Virchow, Krause & Co. tax equity study concluded.

The biggest beneficiaries were residents of the town of Somers, who received $1.2 million more in services than the county taxes they paid, In the town of Bristol, residents received more than $700,000 worth of services paid for by folks in other communities.

Residents of the contributing communities in many cases contribute toward a county service like law enforcement or zoning but also pay separately for the same service at the municipal level. The Alliance of Cities calls that phenomenon double whammy taxation. In other cases, city residents just benefit from a county service proportionately less   or, in some cases, more than residents of neighboring communities.

Sheriff's patrols were the area where taxes paid vs. benefits received were most out of whack. City of Kenosha residents contributed $1.9 million in tax revenue to subsidized sheriff's patrols in the towns of Brighton, Bristol, Paris, Randall, Salem and Somers, and the Village of Paddock Lake, the study found. It found that city residents pay more than $900,000 a year to subsidize county road maintenance that benefits others.

It also found some subsidization that benefits city residents: city dwellers receive a $1 million subsidy toward jail operations, and a subsidy of more than $1.7 million a year for juvenile services.

Phase II of Virchow Krause's study, which will explore regional/local service and structural issues, and the feasibility of sharing or consolidating services in the urbanized area of Kenosha County, is expected in April or May. Phase I of the study was financed by the City of Kenosha, the Village of Pleasant Prairie and Kenosha County. Phase II is being financed by those governmental units plus the Kenosha Area Business Alliance.

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Joe Greco named 'Honorary Mayor'
Menomonee Falls Village President Joe Greco was named an honorary mayor Feb. 17 for being an unfailingly passionate, and often eloquent, spokesman for the communities of Wisconsin.

Menomonee Falls (population 33,000 plus) is the largest village in Wisconsin. It is more populous than half the members of the Alliance of Cities. Thanks both to its size and its location in fast-growing Waukesha County, it shares much of the promise and many of the problems of Alliance members.

Greco brings to that challenge an understanding of  how Menomonee Falls' fate is inextricably tied to the economy of southeastern Wisconsin — that as goes Milwaukee, so goes Menomonee Falls.

As the plaque declaring Greco an honorary mayor notes, "Joe Greco and city leaders of the Wisconsin Alliance of Cities share an urban/suburban ethic and have in common shared values, shared ideals, and — yes — shared revenues."

greco.jpg (21146 bytes)
Joe Greco

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News Briefs
                                                      (Clicking on underlined text takes you to news stories cited.)

Top Madison area developers want a bigger voice in city and county politics so what else? they're  forming a lobbying group and planning to become involved in election campaigns. The group, called Smart Growth Madison, plans to push for voluntary inclusionary zoning laws and affordable housing. But not everyone welcomes the injection of more big money into local and county politics. See the Wisconsin State Journal story here.

Smart growth, it seems, is different things to different people. In central Wisconsin, it's being described as everything from a bureaucratic nightmare to a United Nations plot. See the Marshfield News-Herald story here. In Price County, the county's Smart Growth Committee asked the County Board to a seek legislation to repeal the smart growth law. Get the buzz from the Phillips Bee here.

freeway.jpg (10281 bytes)
Why Widen?

The Milwaukee County Board joined the Milwaukee and Glendale common councils Feb. 20 in urging rejection of plans to widen I-94 and I-43 to eight lanes as part of a $6.25 billion freeway reconstruction package. Opponents say the proposal would destroy too many homes and businesses, increase air pollution and encourage sprawl. For Larry Sandler's Milwaukee Journal Sentinel story on the vote, look here. An increasing number of newspaper editors and television news directors across the state agree with Milwaukee and Glendale that transportation officials have drafted too grandiose and too expensive a set of blueprints for the Marquette interchange project. See the Wausau Daily Herald's reasoning here.

Waukesha residents could be socked with $67 million to $70 million in costs to rid its municipal water system of naturally occurring radium, as a result of a U.S. Circuit Court of Appeals decision from Washington, D.C. Nearly 600 communities across the country are in a similar bind, including a number in southeastern Wisconsin, the Milwaukee Journal Sentinel reported. See the story here.

The almost brand-new Marathon County Village of Kronnenwetter, carved out of its surrounding town just four months ago, has voted to swallow the town lock, stock and barrel by annexation, the Wausau Daily Herald reports. That comes over objections by the state Department of Administration that the action misuses municipal consolidation law and is contrary to the public interest. See the Daily Herald story here.

Racine is hoping to land a proposed high-speed ferry port away from Waukegan, Ill., setting up possible competition with a line proposed for Milwaukee and existing ferry service in Manitowoc, the Milwaukee Journal Sentinel reports. Discussions involve a route from St. Joseph, Mich. to Racine, then to Chicago and back to St. Joseph, with a passenger-only catamaran making three or four trips a day during peak periods. For the Journal Sentinel story, look here.

The Legislative Council’s Special Committee on Broadband released its report at a public hearing on Feb 19. The study committee recommended only one item for legislative action. The soon-to-be-drafted bill calls for an interactive database to be developed and maintained for the purposes of providing information about high-speed broadband availability in Wisconsin.

Milwaukee's Business Improvement District #21 has launched its own website, http://www.MilwaukeeDowntown.com/ The web site is aimed at downtown property owners and business people, but anyone can use it to find out what is going on in downtown Milwaukee.

How to handle a potential $3.5 million shared revenue cut is one of the bones of contention in the Madison mayor's race. The candidates are land-use activist Dave Cieslewicz and former mayor Paul Soglin. See the Wisconsin State Journal story on their response to the potential cut here.

911.gif (2771 bytes) A bill that would saddle property taxpayers with much of the cost of forwarding the location of 911 callers using cellular telephones to the dispatchers who need that information was approved, 10-1, by the Assembly Energy & Utilities Committee March 4. The committee responded to several of our concerns, but rejected an amendment that would have eased the burden on property taxpayers to accommodate the new technology. See our news release on the bill here.

Officials of Algoma and Kewaunee County are talking consolidation. Officials are asking if it would be feasible and cost-effective to consolidate county and municipal law enforcement, among other activities. See the Algoma Record-Herald story here.

A group of local governments in western Wisconsin have jointly contracted with the Public Strategies Group, St. Paul to look at the opportunities and obstacles to jointly providing local services. The group includes City of Eau Claire, Eau Claire County, Chippewa Falls, Chippewa County, the town of Washington, and the Eau Claire School District. The initial focus will be on sharing risk management, group purchasing, and procurement services. The study will also look at forming an ongoing intergovernmental partnership to seek other opportunities for sharing services or consolidation.

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Upcoming Events

(click on underlined text for more)
March 12 Assembly for Local Arts - Arts Day Madison
March 17 Wis. Environmental Policy Forum Madison
March 20-21 Alliance meeting Madison
March 24 Jt. Finance budget hrg. Rhinelander
March 25 Jt. Finance budget hrg. Menasha
March 26 Partners in Local Govt. Madison
March 31 Jt. Finance budget hrg. Milwaukee
April 1 Election Day
April 3 Jt. Finance budget hrg. River Falls
April 3-4 Wis. Community Leadership Summit Wis. Rapids
April 8 Jt. Finance budget hrg. Platteville
April 9 Jt. Finance budget hrg. Madison
April 9 MEUW Legislative Rally Madison
May 14-16 Amer. Publ. Wks. Assn. - WI Chapter Madison
May 21 Transit Day at the Capitol Madison
May 22-23 Alliance meeting
June 26-27 Local Telecom Regulation Conference UW-Madison
Sept. 18-19 Alliance meeting Green Bay
Oct. 29-31 League of Wis. Municipalities annual  mtg. Milwaukee
Nov. 6-7 Alliance meeting Wauwatosa
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THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881