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April 5, 2005 e-newsletter

Don't  forget to vote!

Alliance, League talk turkey over lasagna

Annexations create jobs

GOP drafts smoking pre-emption bill

State deficit: $1.9 billion

News Briefs

'TABOR causes downward spiral'

Upcoming events

Alliance, League Sponsor Legislative Luncheon
Time to talk turkey with state legislators


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Inn on the Park

Lasagna is on the menu, but the discussion will be frank as city and village leaders from around the state talk turkey with their state legislators at the biennial legislative luncheon  sponsored by the League of Wisconsin Municipalities and the Wisconsin Alliance of Cities.

The luncheon is from 12:30 to 1:30 p.m., Thursday, May 19,  at the Inn on the Park, 22 S Carroll Street, Madison. The League and the Alliance have a knack for scheduling this event for the time when the budget debate is getting hottest and heaviest before the Legislature's Joint Finance Committee, and this year the committee is likely to be down to the nitty-gritty issues by mid-May.

Later on the afternoon of May 19, Alliance finance directors and the board of dirsectors will meet at the hotel, but other city leaders will be free to make appointments with their legislators before the luncheon or during the finance directors' and board meetings.

RSVP to  Mary Malone at the League ( 608-267-2380) for the $12 per person luncheon — you should have received an invitation —  and to the Alliance for the rest of the meetings. We'll send out an RSVP form and more details of the meeting. For hotel reservation information, look here. And don't forget to invite your legislators!

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Annexation Creates Jobs
Every acre of land annexed into a Wisconsin city or village creates, on average, 11 jobs, according to a study by the Wisconsin Economic Development Institute.(WEDI) Although the state doesn't keep figures on all annexations, the institute estimated that 10,300 jobs per year are created in annexed areas.

That's a third of all the jobs created in the state last year. During development of the annexed land, there are nearly 29,000 people at work creating the infrastructure necessary to accommodate the development or supporting the infrastructure creation off-site, the study estimated. 

"This number seems to be inordinately large on an annual annexation basis," the study said. "However, for just one firm, MLG, according to its chairman, J. Michael Mooney, 'a conservative estimate is $644 million in current tax base producing $16 million annually in property taxes and 22,000 jobs producing $900 million annually in payfolls has been created so far in land annexed and developed as business parks by our organization... Upon completition of existing MLG projects, those numbers will nearly triple.'"

MLG has developed eleven business parks, including ones in Beaver Dam, Beloit and Waukesha. The company's business parks typically rely on Tax Incremental Financing (TIF) to provide infrastructure for development.

TIFs throughout the state grew 11.6% in value last year, and almost 4% of the total value of cities and villages was value created through TIF financing, according to the Legislative Fiscal Bureau.

The WEDI report is available here.

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Potentially unconstitutional
GOP drafts pro-smoking bill

By Rich Eggleston

Unfortunately, it wasn't an April Fool's joke.

The Wisconsin State Journal reported April 1 that Republican lawmakers are floating a proposal to regulate smoking in restaurants statewide, let bars decide whether to go smoke-free and prevent local governments entirely from having a voice in a crucial local public health issue.

The Alliance of Cities thinks the bill is unconsitutional because smoking in any particular bar just isn't a matter of statewide concern. If enacted and somehow ruled constitutional,  the regulations would override Madison's ordinance to ban smoking in bars, due to take effect in July, the State Journal said. Other ordinances across the state could also be affected, public health groups added.

"This legislation sets a dangerous precedent and would allow for the establishment of a weak public health standard that will be difficult, if not impossible to strengthen," the American Cancer Society, the American Heart Association, the American Lung Association and Smokefree Wisconsin said in a memo to legislators here. For Smokefree Wisconsin executive director Maureen Busalacchi's take on the issue, look here.

The bill is fundamentally political, and the tobacco industry wants to kill local control to make its lobbying efforts easier, local-control advocates say.

"They can much more easily buy off the Legislature and work at the state level than they can at the local level," said Madison Ald. Steve Holtzman, the primary force behind the Madison ordinance. "They know that smoke-free legislation is popular, and they can't possibly stem the tide at the local level."

At the local level, the tide is definitely rising. A proposed ordinance in Stevens Point is the talk of the town there, former newspaper editor Bill Berry wrote in his Capital Times column here.

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Alliance honors Mayor Miller

He gave us some of the best years of his life, and he didn't even get a gold watch.

But Alliance President Tim Seider of Greenfield did present former Alliance President Mike Miller with a plaque recognizing his service to the city of West Bend, local governments in general and the Wisconsin Alliance of Cities in particular.

Mayor Miller, who did not seek re-election in West Bend Tuesday, also has been president of the Mid-Moraine Municipal Association and the League of Wisconsin Municipalities, as well as serving on the steeing committee of Southeastern Municipal Executives and on the board of directors of the West Bend Area Chamber of Commerce.

He was first elected mayor of West Bend in 1987, and was re-elected in 1990, 1993, 1996, 1999 and 2002.

Mayor Miller has been an outspoken critic of state shared revenue policies that resulted in a reduction in shared revenue payments from $3.3 million in 1987 when he became mayor to $1.5 million today, as he leaves office.

And those numbers aren't adjusted for inflation! The loss has been offset somewhat by payments under the Expenditure Restraint Program, which Gov. Jim Doyle has proposed eliminating as part of his plan to impose levy limits on local governments.

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Alliance President Tim Seider presents plaque
to Mayor Mike Miller

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A couple more pairs to draw to

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Dave Clarenbach & Ed Huck

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Mayor Glowacki & Mayor Oitzinger

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News Briefs

Waukesha County to Overtake Milwaukee County: If trends continue, the equalized value of Waukesha County will surpass that of Milwaukee County in 2014, according to the latest regional report by the Public Policy Forum. The forum found that the seven counties of southeastern Wisconsin grew $145.4 billion in property value from 2003 to 2004, an 8.9% increase. Kenosha County grew the fastest, 10.3%, but among municipalities, the village of Merton in Waukesha County grew 29.7% in value. See the full report here.

Getting clubbed with an olive branch: Brookfield Mayor Jeff Speaker said he didn't ask the town of Brookfield if it was interested in consolidating with the city before commissioning a study on a possible merger. "I'm just a little sick of extending the olive branch and having it taken away from me and hit over the head with it," Speaker told the Milwaukee Journal Sentinel, Predictably, town officials threw cold water on the idea, Speaker said he was interested in any cooperation that saves residents money and improves services. Story here.

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Residential share
of total property taxes

"There are so many different layers of local, county and state government in Wisconsin it takes a map, a notebook and a piece of duct tape to figure out which one you are in," Mike Nichols responded in his Journal Sentinel column. "The duct tape is to keep you from screaming." Column here.

Speaking of mergers, CEOs Edward Whitacre Jr. of SBC and Ivan Seidenberg of Verizon refused to promise Sen. Herb Kohl that they'd stop lobbying state legislatures to bar local governments from entering the municipal broadband business if Congress approves mergers of their companies, SBC with AT&T, and Verizon with MCI. "We're certainly going to lobby against that," Whitacre told Sen. Kohl at a March 15 Senate Judiciary Committee hearing. The C-SPAN video, with Sen. Kohl's exchange with Whitacre and Seidenberg about 45 minutes through the hearing, is here.

Over the past year, Appleton has sold more than $75,000 in surplus equipment on the Internet trading site eBay, with some items selling for nearly triple the amount the city used to net during its annual auction, the Appleton Post-Crescent reports. The results have been so rewarding that the city has canceled its annual auction, and some neighboring communities are looking to follow suit.   Items sold so far include a  riding lawn mower, a cargo van, a Jeep and three Valley Transit buses. Story here.

Green Bay Mayor Jim Schmitt says he has just begun the task of revitalizing his city's downtown. There are three major downtown construction and redevelopment projects underway: The Nicolet National Bank Building, Baylake Bank City Center and a new parking ramp. “The momentum is on our side as we have just scratched the surface with these projects,” Mayor Schmitt said in his state-of-the-city speech. “There is more to come.” Story here.

Conspiracy theory: There "seems to be an orchestrated effort" to badmouth business for avoiding property taxes, former State Revenue Secretary Rick Chandler says in an Op-Ed piece in the Wisconsin State Journal. Chandler suggests that some folks may think there is "a sinister plot by business interests to shift their property tax responsibilities to residential homeowners." Chandler asserts that, "While it may serve some political purpose to make this claim, it's not true." Chandler in turn claims market forces dictate the shifting share of property taxes, but he offers no facts to back up his claim. If anyone has any facts, would you please let us know? Chandler's column is here.

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We don't need it, economist says
TABOR causes downward spiral

De Pere An expert from Colorado told a forum at St. Norbert College last month that TABOR has resulted in "systematic disinvestment in public institutions" in her state.

Higher education spending has fallen nearly 1.5% annually, and public health spending has fallen 1.4% a year under TABOR, a constitutional amendment that was advertised to the public as reducing the increase in government, not shrinking it, said Carol Hedges of the Colorado Fiscal Policy Institute.

Under TABOR, by 2001, Colorado ranked 48th nationally in Medicaid spending, with the fifth most stringent eligibility requirements in the country, she added.

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Carol Hedges

Lasee to Senate:
'Act or Lazich is recalled'

Rep. Frank Lasee predicted at a recent forum in De Pere that TABOR advocates in the Assembly are awaiting action on the proposed constitutional amendment in the Senate.

"We're going to sit back and wait and see what they (senators) do," he said. "If they don't act, Mary Lazich will get recalled."

And TABOR  has forced cuts in the wrong places in Medicaid and other budget areas, Hedges added.

More than 60% of Colorado's Medicaid budget goes to long-term care, but the state doesn't provide any money to local public health departments, she said..

The notion that Colorado adds to public involvement in government through voter participation in budget referendums is a joke, Hedges added.

"The pollsters rule," she said. "Political consultants decide, not voters."

She had one observation related to  Wisconsin: "Democracy seems alive and well in Wisconsin. You don't need (TABOR). It would put Wisconsin on a downward spiral."

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Upcoming Events    (click on underlined text for more)

April 10 Tax Freeze: Hype or Hypothermia? Plymouth
April 12 Telecom and Technology Conference Marquette Univ.
April 13 Waterfront Revitalization Conference Sheboygan
April 21 Election Reform forum UW-Oshkosh
May 3 Fighting Reactionary Politics Oshkosh
May 10 Mayor Mike Miller retirement party West Bend
May 11-13 State APWA spring conference Lake Delton
May 18-19 WAPA 2005 Planning Conference Sheboygan
May 19-20 Legislative Luncheon, Alliance meetings Madison
June 9 New Cities Project Chicago
July 21-22 Alliance meetings Racine
Sept. 15-16 Alliance meetings Whitewater
Nov. 10-11 Alliance meetings Neenah

(details of the latter Alliance meetings TBA)


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