| Alliance Urges
Regional Economic Development By Rich Eggleston
We're asking city leaders to move regional economic
development to the top of their agenda for discussions with legislators at the League-Alliance Legislative Luncheon in
Madison, at 12:30 p.m. on May 19 at the Inn on the Park in Madison.
We're asking the state to be REDI for a burst of economic
activity in the cities and villages of Wisconsin and to help make it happen by embracing a
program we call REDI: our Regional Economic Development Incentive.
| REDI is a new regional tax base
growth-sharing program designed to support metropolitan and regional growth and
cooperation. It is based on the principles advocated
by the Sheehy Task Force: "State policies should reflect the reality that
Wisconsins economic strength begins in the communities and regions and that regions
compete globally. Growth sharing tax policies have been successful in other
states such as Minnesota and are easily applied to metropolitan areas. Growth sharing can
also be tied to support for regional services or infrastructure and therefore encourage
service sharing.
REDI will enable communities to make an investment in
infrastructure that supports economic growth and cooperation. Investment in infrastructure
to support economic development has been lagging due to state and local fiscal problems. A
new commitment to this type of funding should improve the states overall economy and
help the state overcome its fiscal problems. Failure to invest in this new approach will
only delay recovery further. |

Our regions - based on economies.
(White counties are a "rest of state"
region.)
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The idea is to peg shared revenues to growth in state
general purpose revenues essentially income and sales taxes to give
municipalities an incentive to grow their regional economies. Otherwise economic
growth only adds to the property tax burden.
t"Regionalism is a key to economic development,"
the La Crosse Tribune agreed after Alliance staff visited. "Giving money to regions
is important because it recognizes that regions and metro areas are the real economic
units in the state. Jobs can cross over municipal boundaries, but it is the economic
regions that serve to attract growth and development." Editorial here.
RSVP to Mary
Malone at the League ( 608-267-2380) for the $12 per person legislative luncheon
you should have received an invitation and to the Alliance for the
rest of our May 19-20 meetings. We'll send out an RSVP form and more details of our board
and general membership meetings. Rooms at the Inn on the Park are blocked only
until May 6 at the $62 government rate. For hotel reservation information and
information on dinner Thursday night, look here. And, whether you are coming or
not, don't forget to invite your legislators! |
Alliance outlines long-term solution to property tax woes

Ed captured on video
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In a videotaped interview on wispolitics.com, Alliance executive director Ed Huck
outlined how the state could provide a long-term solution to the problem of high property
taxes in Wisconsin and why it must do so. Without a long-term strategy to control
property taxes, levy limits would be a temporary fix, he told Jeff Mayers of
wispolitics.com. Ed said the long-term strategy must
include:
- non-property tax sources of revenue;
- public employee labor law reform;
- health-care reform;
- K-12 education financing reform;
- and campaign finance reform.
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| Ed said K-12 financing reform
"is the gorilla in the room, along with health-care costs." He added that there
have been "outrageous" arbitration awards recently that drive up local costs
beyond local government's ability to pay. He said
all the above reforms are crucial to achieving property tax relief, and property tax
relief in turn is crucial to retaining the middle-class homeowners on which healthy cities
depend. Unfortunately, the political process too often loses sight of that goal, Ed said.
"The changes that state legislators have made over the last 20 years have been driven
by special interests, not good public policy," Ed said in the interview. "What
we (the Alliance of Cities) are going to try to do is inject policy, and we hope some of
that sticks."
Ken Cole, executive director of the Wisconsin School Boards Association, said in a
companion interview that K-12 financing reform is unnecessary, and Todd Berry of the
Wisconsin Taxpayers Alliance suggested taking counties off the property tax. Neither
suggested attacking any of the laws that drive property taxes.
To watch the video interview with Ed, go here. Note that you must
use Internet Explorer non Microsoft browsers won't work.
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| TABOR Watch A lot of folks are coalescing behind a five-year
moratorium on Colorado's TABOR refund, but it's too early for public school advocates or
others who rely on other public services to breathe a sigh of relief, Frankie Anhut of
Impact on Education wrote in her final column in the Boulder (Colo.) Daily Camera.
"Today, Colorado is 49th in the country
in K-12 spending relative to our state's wealth, so we have a long way to go before we can
'celebrate' being average. Hang on, it gets worse. This year, the state's inflation index
increased by only one tenth of one percent, mainly due to lower prices for housing and
cars things school districts don't buy. On the other hand, the inflation index does
not take into account real world costs facing school districts, such as the costs of
gasoline for school buses, electricity to heat schools and health care insurance for
teachers which have experienced double-digit inflationary growth. |
Button purchased on
State Street in Madison
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"With rising transportation and energy
costs, higher insurance premiums and salary increases negotiated with teachers the
district must figure out how to create a balanced budget that minimizes cuts that affect
the classroom. Harry Houdini would be hard pressed to get out of this mess!" Column here.
Lucky for Wisconsin that we don't face rising
transportation and energy costs, higher insurance premiums and salary increases negotiated
with teachers!
It's people like Anhut that Rep. Frank Lasee
(R-Bellevue) refers to as the "spending lobby" in his latest on TABOR here.
Wisconsin gets more good Inc.
Green Bay ranked first and Madison ranked second among
midsized cities in Inc. Magazine's rating of the top cities for doing business in America.
"With job bases from 150,000 to 450,000, the midsize
cities include a strong showing from the Inland Empire, driven by escapees from the
California coast," the small-business oriented magazine says in its May issue. The
magazine cited Green Bay's quality of life, diversified economy, and hardworking,
skilled labor force.
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"It lacks the population-driven growth
of Sunbelt cities such as Las Vegas or Atlanta, but it is an excellent place to start and
expand a business," Inc. said. It said Madison is "peculiarly well suited for
the service-driven economic expansion. As state capital and locale of one of the region's
top universities, its population is exceptionally well educated." The ranking focused heavily on a metro area's job-creation track
record. |
"The impact on business of a city's educational and training systems, housing and
living costs, taxes, regulatory burdens, and quality of life--factors commonly measured by
other 'hot lists' to identify strong economies--are all ultimately reflected by job
growth," Inc. Magazine said. "Regions that consistently generate jobs in a broad
range of industries rank at the top of the list."
The publication ranked La Crosse 17th among small cities.
Story here. |
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| Alliance welcomes
new mayors The Alliance welcomes the
following new mayors to our organization:
- West Bend Mayor Doug Bade, 53. Story here. (second item in
digest.)
- LaCrosse Mayor Mark Johnsrud, 41. Story here.
- Greenfield Mayor Mike Neitzke, 41. Story here.
- Sheboygan Mayor Juan Perez, 51. Story here.
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Mayor Juan Perez
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News Briefs
Legislative obesity? Lawmakers
who inserted a $95 million expansion project for Wisconsin 23 in Fond du Lac and Sheboygan
counties into the state budget were unrepentant after the Milwaukee Journal Sentinel reported
that the four-lane highway won't be needed for several decades. But the project may come
unraveled as state transportation officials look for ways not to build a highway we don't
need, the Journal Sentinel reported April 24. The story that the newspaper first
broke is here. The
follow-up is here. An
editorial chastising lawmakers is here.
Perks cost money. The state
budget and other legislation enacted last session brought the annual cost of
special-interest perks to $1,358 for each Wisconsin taxpayer, the Wisconsin Democracy
Campaign calculated. Seniors, college students and ordinary taxpayers also shouldered
hundreds of dollars worth of increased taxes and fees to enable wealthy donors to avoid
sharing the pain, the Democracy Campaign said in a news release here.
The casualty of business-as-usual at the Capitol is trust in government, the Wausau
Daily Herald said in an editorial.
"Economic development, job creation,
streamlining the regulatory process - all are important," the newspaper said.
"But we respectfully would suggest that substantive discussions of any of those
issues can't begin until another is resolved. That topic is trust, which is tainted by the
stench of money that permeates state politics."
Editorial here. |

Top of the Legislature's
food pyramid?
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| Madison's minimum wage ordinance
upheld. Circuit Judge Maryann Sumi upheld Madison's minimum wage ordinance
and by extension Milwaukee and LaCrosse's April 21, ruling there was nothing in
state law that prevents cities from establishing their own minimum wage. Story here.
But there soon may be. "Friends" of local government in the Legislature, who for
months have ignored labor-management recommendations that the state minimum wage be
raised, put a bill to preempt local authority on the subject on the fast track, The
Capital Times reported. Story here. McNally: Voter ID bill doesn't do enough. "The attempt
by Wisconsin Republicans to reduce voting by undesirables such as the elderly and the poor
is laudable. But it doesnt go nearly far enough," Joel McNally writes in his
latest column in Milwaukee's Shepherd Express. "Frankly, Republicans
arent thinking conservative enough. Its time someone had the political courage
to stand up and demand a return to voting as originally envisioned by our founding
fathers.
"Voting in Wisconsin should be limited to wealthy, white, male property
owners..." Column, which also was printed in The Capital Times, where it's
likely to hang around longer in cyberspace, is here.
Incredible schools. For a backwoods
Midwestern state, our schools ain't too shabby. Wisconsin's metropolitan areas snatched an
incredible eight spots among the top 20 metropolitan areas in the country with the best
public schools, in a ranking by Expansion Management magazine. The publication,
aimed at corporate executives seeking places to relocate, rated metropolitan Sheboygan
schools second best overall in the country, metro Madison schools third; Oshkosh
and Neenah's schools sixth, Appleton's seventh, Eau
Claire's 10th, Fond du Lac's 15th, Wausau's
18th and LaCrosse's 20th.
"It has become cliché to say that Americas
economic future rests with its educated work force. However, just because its a
cliché doesnt mean that it is not true," the magazine said. Rankings here.
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