Formula
changes would affect Alliance?
Doyle pledges to hold local aid lineGov. Jim
Doyles pledge to avoid cuts in the state shared revenue program is critical to
holding the line on property taxes in the state, the Wisconsin Alliance of Cities said in
its official reaction to the governor's state-of-the-state speech.
Doyle cited full funding of shared revenues as the first
element of his determination to live up to the states commitment to local
government. The real beneficiary of that commitment will be the property taxpayer, said
Ed. Huck, Alliance executive director.
"Wisconsin will never be able to slay the
property-tax dragon without a predictable source of revenue to take the place of property
taxes," Huck said. "We now know what our foundation of non-property-tax dollars
is for the future."
The governor said state government will work in
partnership with Wisconsin communities to hold down property taxes. Huck said the
Alliances city leaders will work in partnership with the state to bring new jobs to
Wisconsin and make all levels of government as productive and cost-effective as they can
be.
An Alliance plan to channel future shared revenue growth
into a regional revenue sharing program will open wide the throttle on Wisconsin's
economy, Huck said. Even though it would start as a modest program and leave in place the
state's equitable and proven shared revenue program, it would start people thinking about
the regional economies that together form Wisconsin's overall state economy, and jumpstart
them to work together to build our regional economies.
"We have a smorgasbord of proposals to reduce
property taxes, reform government, reduce the cost of government and revitalize
Wisconsins economy," Huck said. "Our plate is loaded with issues that will
enhance Wisconsins quality of life and make government work better for the people.
"But we cant devote our full energies to those
tasks without a stable, predictable source of state funding, and that makes the
governors commitment paramount," Huck said.
ERP replacement described
Gov. Jim Doyle hinted in his state-of-the-state speech at
a major makeover of Wisconsin's expenditure restraint program (ERP), a $57.5 million pot
of money on which Alliance members rely heavily.
Under the administration's plans, ERP's would be replaced
by a new program, nicknamed LRIP, for Levy Reduction Incentive Program. However, the
new program's name is expected to change because the Department of Transportation already
uses that acronym. The new program would:
- Be linked to levy instead of operating budget increases.
- Include TIF growth in a valuation factor that would replace
the net new construction provision of the ERP formula.
- As under current law, provide that communities that levy
less than 5 mills could not participate.
- Provide that the growth that determined allowable levy
increases under the new program would be regional growth.
- Establish regions for calculating areawide growth based on
regional planning commission boundaries, with recalcitrant counties surrounding Madison
that do not belong to a regional planning commission lumped together.in the above.
- Create an LRIP program for counties with an undetermined
amount of money scraped up from somewhere.
- Provide a bonus payment for communities that levy
significantly less than their LRIP limit.
- Adjust payments to avoid penalizing communities that
consolidate or combine services.
- If shared revenues were reduced in the future, adjust
payments to also avoid penalizing affected communities.
"We are still working on the details," Jason
Helgerson, executive assistant to Revenue Secretary Mike Morgan, told the briefing. |
Multiple
Choice Quiz
Q: Which apartment complex is tax-exempt?

Sauk Gardens Apartments, 8501 Old Sauk Rd., Madison
or

Attic Angels Apartments, 8301 Old Sauk Rd., Madison
A: Both
complexes are aimed at senior citizens. Both are high-end developments and feature
many amenities. Sauk
Gardens Apartments was assessed at $5.8 million last year, and paid $131,688.30 in
property taxes. Units at Sauk Gardens rent for between $850 a month and $1,450
per month. Attic Angels apartments, located immediately across a side
street, boast many of the same amenities. That development paid no property taxes
because it is owned by a "benevolent" association.
Courts have ruled that "benevolent"
doesn't mean "charitable," and to qualify for a tax exemption for retirement
homes, property owned by a "benevolent association" need provide housing to only
one person aged 55 or older. (Friendship Village Milwaukee v. Milwaukee, 181 Wis. 2d
287, 511 N.W. 2d, 345 (Ct. App. 1993).

Mayor Tom Barrett
|
There's a Legislative Council study committee examining the situation, and
advocates of reforming the tax-exemption system held a news conference at the Capitol Jan.
10 to highlight the disparities the current law allows to exist. "Milwaukee Mayor Tom Barrett warned...that attorneys and
accountants will not hesitate to create tax-exempt facilities to shelter the wealth of the
wealthy," Anita Weier of The Capital Times wrote in a story here.
"The schools and police and fire services will be paid for by a smaller number of
individuals," Mayor Barrett said. "It is inequitable."
The people who move into such places have enough money to pay for medical services, he
said, while a low-income person with an $80,000 home would be on Medicaid.
"This property tax exemption is now being used to shift the property tax
burden," said Lodi Mayor Paul Fisk, stating that he tried but did not succeed in
negotiating a payment in lieu of taxes by a residential housing complex in his community.
Mayor Mike Miller of West Bend said the elegant Cedar Ridge Apartments in his community
pays no property taxes while a poor woman who lives across from City Hall struggles to pay
hers.
"Cedar Ridge does nothing for the community," Mayor Miller said. "It is
there for the people who live there." |
"Groups that don't pay taxes just love
it," attorney Fred Mohs, a former UW regent who serves on the Legislative Council
committee, said. "The public like a deer in the headlights
just gets run over."
|

|
 |
Letters
from Colorado
TABOR is no panacea"Here
in Colorado, where I now make my home, I can state unequivocally and from personal
experience that TABOR has decimated many of the most basic services that citizens demand
and expect of their government," former Madison resident Todd Van Fossen of Denver
wrote in a letter to the editor in The Capital Times.
"School funding in Colorado, for example, is now among the lowest in the nation, and
there is serious debate about whether public funding will continue to be available for the
state university system. ... The arts, as they exist here, are entirely
reliant upon the generosity of philanthropists. And transportation improvements, such as
the rapid transit program recently passed in metro Denver, are dependent on local
referendums to approve additional sales tax levies.
"TABOR is promoted as a panacea -- a way to control
taxation and reduce the size of government without 'penalty.' In fact, the opposite is
true. Because politicians must run for re-election, and therefore cannot entirely gut
basic services without backlash at the polls, TABOR becomes the ultimate in tax shifting
and shell games. The result: blatantly regressive taxation and the erosion or elimination
of the most basic services."
Letter is here.
TABOR: Bad for your car
"I moved to Colorado from Wauwatosa in
July 2000 due to a job transfer," Tim Heimerl of Westminster, Colo., wrote in a
letter to the Wisconsin State Journal.
"...I dearly wish I had read more about
the so-called 'Taxpayer Bill of Rights' (TABOR) that had passed in Colorado in the early
1990s and is now being discussed in Wisconsin. ...The first thing we noticed after moving
was the state of Colorado's school system. It lags Wisconsin's in too many ways to count.
"Then there are the roads in Colorado.
Like the idea of having your wheels aligned two times a year due to terribly rutted
highways? ...Snow removal is a joke. Your old car will cost you hundreds of collars to
register annually. You start to notice your car is under constant repair due to excessive
wear and tear, all for modestly lower taxes..."
Letter here. |
|

|
 |

|
Solving a problem identified in
1973
Does SE Wisconsin have the guts to work together?The history of Southeastern Wisconsin offers little encouragement
to efforts to cooperate regionally and reduce the cost of government, the Milwaukee-based
Public Policy Forum says in its latest Regional Report.
"The fact that our strongest examples of regional
agreements (SEWRPC and MMSD) are also the most controversial says much about the region's
ability to forge multi-jurisdictional agreements that are perceived as being fair by all
stakeholders," the Forum said in its December report.
We're not sure about the use of the word
"agreement," but intentionally or
unintentionally the Forum omitted the 1990s' most stunning example of a regional
approach to solving a perceived problem, and the one that goes far to make its point:
creation of the Southeast Wisconsin Professional Baseball Park District, the agency that
built the 43,000-seat stadium with a leaky, broken roof and a cellar for its most
prominent tenant. |
| The report is here. |
|

|
|
| News Briefs Gov. Jim Doyle praised Milwaukee Mayor Tom Barrett during
his state-of-the-state speech Jan. 12. "While the Legislature has wasted time
arguing over a complicated and unworkable constitutional amendment that would gut
education and stifle job growth, Mayor Barrett has actually accomplished something,"
Doyle said. "He cut spending. Under his budget, the city increased its levy
by just 2 percent -- less than inflation."
Stevens Point and Milwaukee
are both considering joining Madison with a minimum-wage ordinance in the wake of the
Legislature's efforts to block Gov. Jim Doyle's attempt to raise the
minimum wage statewide. In Stevens Point, Mayor Gary Wescott said he'll
ask the Common Council to implement the recommendations of a bipartisan task force
if the Republican-controlled Legislature doesn't raise the wage by June. Story here. In
Milwaukee, Ald. Tony Zielinski introduced an ordinance, expected to
win Common Council approval in February, to raise the minimum wage to $6.50 an hour by
2006. Story here. In Madison,
a minimum wage of $5.70 an hour took effect Jan. 1.
|
|

|
|
|