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May 15, 2003 e-newsletter

In this issue:

Alliance Meets on Budget, Freeze, More

Freeze Robs Locals of Growth

Springsted Symposium

Message from Paul Jadin

'Clean Sweep' Grants Available

News Briefs Upcoming Events

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Gov. Doyle joins League, Alliance
State Budget, Freeze on the Agenda

Gov. Jim Doyle will join city leaders and legislators May 22 at the second annual joint League-Alliance Legislative Luncheon, the governor's office announced today.

City leaders from across Wisconsin are gathering in Madison May 22-23 to discuss the state budget, a proposed property tax freeze and a wide variety of bills, some that could help cities and some that could harm them.

The Alliance meetings could coincide with final committee action on the state budget bill. At press time, the subject of the governor's brief remarks was unclear. Top Republican lawmakers also were invited to briefly address the luncheon.

For the agenda, look here. To RSVP, click here.

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Double Standard Suggested
No Freeze Sought for State Tax Revenue

By Rich Eggleston

Four state legislators propose freezing local property taxes as a cure for property tax increases that haven't occurred, but aren't proposing the same powerful medicine for state government, the Milwaukee Journal Sentinel reported.

"On the state level, the equivalent of a property tax levy freeze would be lowering the sales and income tax rates annually so they raised no more in one year than in the last. No one in Madison is suggesting the state do that,"  Journal Sentinel business columnist Avrum D. Lank wrote May 11.

"Why, then," he asked, "should municipalities be asked to do so?" See his column here.

The four  legislators — Sens. Robert Welch (R-Redgranite) and David Zien (R-Eau Claire) and Reps. Luther Olsen (R-Berlin) and Scott Suder (R-Abbotsford)   — are not asking that the state treasury forego the following growth:

increase 2003-05

% increase

Indiv. Inc. Tax

$ 390,000,000

7.2%

Sales Tax

$ 191,800,000

4.9%

Misc.

$ 12,200,000

1.1%

totals

$ 594,000,000

5.7%

(Source: Legislative Fiscal Bureau)

We estimate that, statewide, potential lost revenue from a property tax freeze (assuming the same rate of increase in property values as in the past year and statewide average mill rates for cities, villages and towns) totals $134.7 million in the coming year.

While a property tax freeze is potentially death to economic development (see Ed Huck's letter to the Wisconsin Realtors Association here), it does have political sex appeal, and its passage would put Gov. Jim Doyle in a tough position, John Dipko wrote in his Green Bay Press Gazette column. See the column here.

Chilling Effects of Levy Freeze:

City

Potential Lost Revenue

Appleton

$ 2,150,733

Ashland

$ 144,639

Baraboo

$ 438,616

Beaver Dam

$ (34,456)

Beloit

$ 459,591

Cudahy

$ 412,391

De Pere

$ 416,904

Eau Claire

$ 1,768,924

Fond du Lac

$ 812,277

Green Bay

$ 2,352,502

Greenfield

$ 949,155

Kaukauna

$ 386,978

Kenosha

$ 4,208,511

La Crosse

$ 1,845,598

Madison

$ 13,522,810

Manitowoc

$ 590,576

Marinette

$ 34,696

Marshfield

$ 616,983

Menasha

$ 535,385

Merrill

$ 54,910

Milwaukee

$ 8,190,293

Monroe

$ 203,484

Neenah

$ 612,456

Oak Creek

$ 1,332,831

Oshkosh

$ 1,642,164

Racine

$ 1,911,085

Sheboygan

$ 977,247

Stevens Pt

$ 518,222

Superior

$ 917,131

Two Rivers

$ 84,185

Watertown

$ 456,447

Waukesha

$ 3,010,830

Wausau

$ 768,970

Wauwatosa

$ 3,016,712

West Allis

$ 2,249,665

West Bend

$ 834,006

Whitewater

$ 205,886

Wis. Rapids

$ 81,959

Total

$ 58,681,298

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Springsted mini-Symposium in Madison
Budget Crunch Symposium May 22

William D. Petasnick, president and CEO of Froedtert Hospital and Community Health System, and State Sen. Cathy Stepp (R-Racine) are featured speakers next Thursday at the Springsted mini-symposium on how to  manage successfully in the age of budget crunches.

Petasnick's presentation is titled, "Sticker Shock Are Health Care Costs Controllable?" Health insurance costs also are   a topic on the agenda of the Alliance's general membership meeting Friday, May 23. Sen. Stepp is talking on proposed changes to the tax incremental financing law, which is (funny how great minds think alike) on the agenda of the Alliance finance directors' meeting earlier that Thursday.

Attendance at the Springsted mini-symposium requires a $25 check made out to Springsted, and further information is available along with registration materials on their web site, here. The agenda also is on our web site, here.

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Mayor: Farewell. Chamber Exec: Hello.

jadin.jpg (2757 bytes)
Paul Jadin

Dear Colleagues,

It has been a pleasure working with all of you over the past 8 years. I leave office knowing that the jobs you hold are the most responsible, challenging and rewarding positions anyone can have.

As Chamber President I'll continue to work on community development and other urban policy issues. In fact, we're announcing a coalition of chambers (Fond du Lac, Fox Cities, G.B. and Oshkosh) on May 19th and, hopefully we'll be able to move toward regional economic development. I have also shared the Metropatterns study with our Board and will be exporting the concept as far as I can.

Thanks so much for your friendship and for making me a better leader. Special thanks to Mayors Miller, Lambie, Seider, Glowacki and Hannah for coming to my farewell bash. Your presence added tremendously to an already overwhelming and humbling evening. I look forward to seeing all of you in the future and to working with you to improve the Wisconsin economy.

Best wishes,

Paul Jadin

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Clean Sweep Grants Offered

Wisconsin municipalities will a be able to apply for grants of up to $15,000 each  to help set up and operate "Clean Sweep" programs to collect and dispose of household hazardous waste, the Department of Natural Resources says.

There's a narrow window for applying for the grants between July 2 and July 31 and first-time applicants will receive preference. For more information, look here.

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News Briefs

Madison is the fifth best place in the country for business and careers, says Forbes magazine. The magazine's annual survey of the best places to live and work looked at income and job growth, the cost of doing business (including the cost of labor, energy, taxes and office space), the labor pool, crime, housing costs and net migration. "The civic fathers and mothers of (smaller, high-ranking metro areas like Madison) should all feel very proud that each of their towns can offer its citizenry so much for so little," Forbes said. For its annual survey, look here. Wisconsin Manufacturers & Commerce and the Wisconsin Realtors Association, are you listening?

Wisconsin doctors consistently saw the smallest increases in the country in their medical malpractice insurance premiums between 1998 and 2002, according to an analysis by the American Medical Association. As a result, the AMA reports, physicians like orthopedic surgeon Shawn P. Hennigan are moving from Pennsylvania, where premiums have more than tripled, to Wisconsin. See the amednews.com story here.

The Legislature should transfer money from the transportation fund and even raise the cigarette tax if necessary to avoid cuts in shared revenues, says Waukesha Mayor Carol Lombardi. The mayor told the Waukesha Freeman that additional cuts in shared revenue — Waukesha has seen declining aids for years as state support for the program stagnated — would be devastating. See Dennis Shook's story here.

Condos and apartment buildings could replace coal piles along the Fox River in Green Bay under newly elected Mayor Jim Schmitt's vision of downtown redevelopment. See the Green Bay Press Gazette story here.

freeway.jpg (10281 bytes)
More lanes?

A Southeastern Wisconsin Regional Planning Commission committee voted for a plan to add 127 miles of new freeway lanes to the region's freeways, rejecting a plan that would spare homes and businesses in Milwaukee from demolition. See the Daily Reporter story here. The newspaper also reports that the Department of Transportation expanded the scope of the Marquette Interchange project without public input, and Mayor John Norquist wants to know why. See that story here.

Hopes of establishing high-speed Lake Michigan ferry service between Racine and St. Joseph, Mich., are fading. Michigan-based LEF Corp. is short of capital and expertise, and has pushed back the startup date until 2004, the Milwaukee Journal Sentinel reported. See its story here. Meanwhile, the S.S. Badger is celebrating 50 years of service on the lake. The boat plies from Ludington, Mich. to Manitowoc. See the anniversary story here.

 

Rep. Glenn Grothman (R-West Bend) is proposing a one-time 3% cut in transit aids to Madison and Milwaukee, along with a cap on state and federal aids to other transit systems in the state.  The cuts would be disastrous for low-income people in cities like Appleton, the Appleton Post-Crescent reported. See the story here.

What La Crosse Mayor John Medinger described as a hostile legislative committee endorsed two destructive bills earlier this month. The Assembly Rural Affairs Committee endorsed AB 136, the so-called charter towns bill, on a 6-3 vote. See some of the bill's potential impact here. See our follow-ups here and here. See the Beloit Daily News story on the committee action here. The committee also endorsed AB 85, which would allow incorporation of the contentious town of Campbell (next door to La Crosse) without the town having to meet the requirements of state law.

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Upcoming Events

(click on underlined text for more)
May 21 Transit Day at the Capitol Madison
May 22 Springsted symposium for all local govts. Madison
May 22-23 Alliance meeting Madison
May 22-23 Regional Alliances for Economic Success Wausau
June 5 Customers First Energy Conference 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