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July 24, 2003 e-newsletter

Bulletin: Surrounded by children, Gov. Jim Doyle today signed the state budget, and vetoed a proposed property tax freeze.  See the bill signing ceremony on the governor's web site, here. Find the text of the budget speech, veto message and news release on Dick Wheeler's web site here.
Also in this issue...

City Leaders Applaud Freeze Veto

Local Pleas Heard

'Big Spender' Falsehood Resurfaces

CUB Hits Anti-Muni Bill

Madison Seeks Diverse Housing

Power Plant Incentives Signed

Polar Bear Endorses Freeze

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Freeze Veto Pro-Growth
Governor's Veto Preserves Local Options

By Rich Eggleston

Gov. Jim Doyle’s veto of a so-called property tax freeze from the state budget bill is a victory for local government, a victory for Wisconsin’s economy — and a victory for the property taxpayer, city leaders across Wisconsin said Thursday.

The veto will preserve local governments' bond ratings and enable our cities to help with developments that bring jobs to our communities and new tax revenue to local government and schools, city leaders said.

"I'm pleased that the governor has faith in local elected officials," said Mayor Mike Miller of West Bend, Alliance president. "Now it's up to us to ensure that his faith was well placed."

The property tax freeze was a political strategy devised by Republicans with the help of the Wisconsin Realtors Association.

"A tax freeze is a sound bite," said Mayor Ray Glowacki of  Cudahy. "But how can you capture the ramifications in a sound bite?"

Those ramifications include city job openings going unfilled and — at worst — layoffs of city workers. Mayor Miller said jobs going unfilled and positions eliminated will be a widespread phenomenon, but he urged local leaders to bite the bullet.

"I strongly encourage all of our member cities to hold the line on taxes," Mayor Miller said.

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Iceport project in Cudahy

Iceport, a $50 million recreational ice-skating complex proposed in Cudahy, is just one of the projects that was threatened by the proposed property tax freeze in the state budget bill.

The freeze would have seriously reduced cash flow to pay off bonds needed to get the project underway, Ehlers & Associates Inc. told Gov. Jim Doyle in a letter.

 

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Local Officials' Pleas Heard

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Mayor Wehrle

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County Exec. Falk

Elected officials from cities, villages, towns and counties across Wisconsin joined hands last month to urge Gov. Jim Doyle to veto the "property tax freeze" that Republican legislators had inserted in the state budget bill.

Mayor Jerry Wehrle of  Lancaster joked that if state legislators are so intent on managing local government, they should be mailed copies of meeting agendas.

"We don't believe we have to be instructed by Madison to actually take care of our finances," he said.

"A tax freeze on top of (shared revenue cuts) means no citizen in my county has any choice to decide whether to continue the level of services that they want and that they are willing to pay for," Dane County Executive Kathleen Falk said.

Legislators “are trying to tell us they are doing this for the people, and yet as far as townspeople are concerned, they are taking their rights away from them,” town of Kaukauna Chairman Marvin Fox said.

The elected officials spoke at news conferences in Wausau, Appleton, West Allis and Madison. In all, more than 300 county and local officials signed a letter to the governor asking him to veto the property tax freeze.

 

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We Are to Blame, Group Claims

Just when we thought we had shaken the label "big spenders," Wisconsin Property Taxpayers Inc. issued a report claiming that local governments outspend the state, which is contrary to what the U.S. Census Bureau finds in its Census of Governments.

According to the Census Bureau, in 1991-92, state government spent $500 million more than all of Wisconsin’s local governments combined. By 1999-2000, state government was outspending all local governments in Wisconsin by more than $3 billion.

The Census Bureau’s figures show that local governments in Wisconsin did increase their spending by 51% between 1991-92 and 1999-2000. During the same period, the data indicate that state government increased its spending by 68%.

Adjusted for inflation, the state's spending increase was 38%, while local governments' was  22% over the period.

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Wisconsin Property Taxpayers Inc.
analyzes what caused state budget crisis


The Wisconsin Taxpayers Alliance looked more closely at some of the same census data, and concluded that almost a third of Wisconsin's higher state and local tax burden is due to K-12 education spending, almost 13% is due to higher education spending, and 28% is due to higher spending on highways.

Smaller non-tax revenues and less federal aid than in most states account for the remainder of the disparity in state and local tax burden between Wisconsin and other states, the Taxpayers Alliance found.

"The Wisconsin Taxpayers Alliance says we're not the problem. None of the spending numbers suggest that local governments are the problem," said Edward J. Huck, executive director of the 38-member Alliance of Cities.

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CUB blasts anti-muni cable bill
cublogo2.gif (4372 bytes) The Citizens Utility Board on July 16 announced strong support for the expansion of municipal cable TV and high-speed Internet systems, saying that efforts in the Legislature to restrict these systems would harm cable consumers, especially in smaller communities.

"Cable TV rates have risen significantly faster than the rate of inflation, and complaints about service quality are far too frequent," said Steve Hiniker, executive director of CUB. "The cable TV industry wants to protect and expand its monopoly control by blocking one of the last hopes for competition and consumer satisfaction," Hiniker said.

Hiniker was objecting specifically to Senate Bill 54, sponsored by Sen. Scott Fitzgerald (R-Juneau) and Rep. Scott Jensen (R-Waukesha), which would place undue restrictions and reporting requirements on a local government that chooses to provide cable television choice to residents and businesses. See Manitowoc Mayor Kevin Crawford's opinion-page piece in opposition to the bill here.

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Governor Signs Bill
Power Plant Siting Incentives Increase

Gov. Jim Doyle on July 15 signed into law a bill that provides financial incentives to communities that site power plants.

Oak Creek would receive an estimated $1.5 million per year in state utility aid payments  —  double the amount it would receive under the old law  — if three coal-fired plants plants sought by We Energies are built.

The governor vetoed from the bill a proposal to provide money for the neighboring town of Caledonia  — but not similarly situated communities.

See the governor's press release on the bill here.

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Current Oak Creek Power Plant

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Madison Seeks Inclusionary Zoning

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Mayor Cieslewicz

Madison Mayor Dave Cieslewicz on July 17 called for a mandatory exclusionary zoning ordinance covering all residential developments of five units or more in the city.

Under the proposal, developers would have to include low-cost/affordable housing in their developments in order to get a project approved.

Speaking at a 60-unit, mixed-income apartment complex, Mayor Cieslewisz said Madison faces  an "affordable housing crisis."

"Obviously, there'll be stiff resistance from the development community," he said. "We need to respond with facts, good arguments and grass-roots organizing."

In Maryland, Montgomery County became one of the nation's more racially and economically integrated communities as a result of inclusionary zoning.  Ensuring housing for a diversified labor force also was key to successfully diversifying the county's employment base. See more on Montgomery County's experience here.

Ed is attending an inclusionary zoning conference in Bethesda, Md., October 8-10 to learn more about the issue..

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News Briefs


Rich Eggleston of the Alliance staff returned recently from Churchill, Manitoba, where he interviewed a momma polar bear about her views of a property tax freeze. The results were surprisingly similar to what the Wisconsin Realtors Association found in a poll. "I'm in favor of any kind of a freeze," the bear replied. "But I think it would be fairer if the state froze its own tax revenue before it froze another level of government." To see Rich's vacation pictures, look here.

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Bear is pro-Freeze
photo © Rich Eggleston

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Upcoming Events

(click on underlined text for more)
Sept. 18-19 Alliance meeting Green Bay
Oct. 8-10 Inclusionary Zoning Conference Bethesda, Md.
Oct. 23-24 Upper Midwest Planning Conference Milwaukee
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