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May 26, 2005 e-newsletter

Marshfield Faces Fiscal Challenge

'Focus on Regional Economies'

Property-Tax Webcast Airs Ideas

Smart Growth Repeal Would Hit Taxpayers

News Briefs

Upcoming events

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Conversation with the Public:
Marshfield Strives for Efficiency; Will It Be Enough?

By Rich Eggleston

Marshfield has cut expenses and modernized wherever it can, but the cost of city government is often beyond the city's control: its health-insurance bill has doubled since 1994, while state law has effectively eliminated local control over labor costs, City Administrator Mike Brehm told a "conversation with the public" on May 11.

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Ed Huck (l.) and Mike Brehm at Marshfield forum

At the same time, state aid payments have shrunk in proportion to the city's expenses, and Marshfield's share of the overall property tax bill in the city has risen nearly 10% in the last decade, Brehm told the gathering at the Mother Frances Streitel Conference Center.

And city residents pay for more than a million dollars worth of county services they don't receive as a result of "double whammy" taxation that benefits towns, he added.

Now city officials are asking citizens where they would like the city budget to be cut if trends continue.


If a levy-limit proposal had been in effect this year, Marshfield would have had to cut $1.5 million from its budget under the Legislature's plan, and $1.3 million under Gov. Jim Doyle's, Brehm said.

Ed Huck, Alliance executive director, told the forum that Marshfield isn't alone. State shared revenues have lost more than $200 million in buying power since 1995 and double-whammy taxation is a persistent, statewide problem, he said.  The resources available to finance government services are on a collision course with citizens' demands for services, Huck added.

Both the City's and the Alliance's Power Point presentations are available on Marshfield's web site, where you can go by clicking here.

An updated version of the Alliance presentation is here.

The Marshfield News Herald story on the conversation is here.

Mayor Hanna to Legislators:
'Focus on regional economic development'

Wisconsin and all its municipalities need to focus on regional economic development, and the Alliance of Cities' proposed Regional Economic Development Incentive is the ideal way to do that, Appleton Mayor Tim Hanna told the League-Alliance legislative luncheon May 19.

Hours later, the Alliance's Board of Directors  chose Mayor Hanna president, succeeding former Greenfield Mayor Tim Seider. The board selected Mayor Gary Becker of Racine vice president to succeed Mayor Hanna, and appointed Oshkosh City Manager Richard Wollangk to the board to fill a vacancy.

A regional economic focus is "an idea that’s time has come,” Mayor Hanna told city and village leaders and lawmakers at the luncheon. He said single communities aren't the building blocks that form Wisconsin's economy, regions are.

“When Appleton grows the region benefits, and when the region grows, Appleton benefits,” Mayor Hanna said. Making state aids recognize that reality will benefit the entire state, he said.

The Appleton Post-Crescent's story on the luncheon is here.

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Mayor Hanna talks property taxes, economic growth

Appleton Mayor Tim Hanna also gave his suggestions on how to tame the dragon of high property taxes in an interview with wispolitics.com that is available as a webcast on its Internet site.

Mayor Hanna's overriding theme: adapt everything state and local governments do to recognize that Wisconsin is host to a series of regional economies that don't respect arbitrary political boundary lines, and that acting accordingly will improve the quality of life in our communities and the revenue picture for state and local governments.

"If we know that's a reality, we ought to find a way to work with our neighbors, because we share that economy," Mayor Hanna said.

"You don't grow the economy municipality by municipality," Mayor Hanna emphasized. "You do it within regions."

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Mayor Tim Hanna

Local governments, he added, should be given incentives along the lines suggested by the Wisconsin Alliance of Cities to do that.

"If there are no incentives, local governments that do the heavy lifting on economic development will stop doing it," he cautioned.

See our proposal  here:

http://www.wiscities.org/newsletter86.htm#REDI

. The wispolitics webcast you must use a Microsoft browser to view it is here:

http://www.wispolitics.com/index.iml?Article=36533

To watch an earlier video interview with Ed, go here. Note that you must use Internet Explorer — non Microsoft browsers won't work.

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Lisa MacKinnon

Another Slap at Local Government?
Smart Growth repeal will cost taxpayers

When the Legislature's Joint Finance Committee voted to repeal Wisconsin's Smart Growth Law the other day, legislators claimed  they were working for the taxpayer.

Rep. David Ward (R-Fort Atkinson) said Smart Growth forces local officials to plan "with a gun to their head."

"Let's allow development to be controlled at the local level,"  said Sen. Scott Fitzgerald (R-Juneau), co-chairman of the committee.

It was a vote that, if sustained, will cost the taxpayer in the end, said Lisa MacKinnon, policy director of 1000 Friends of Wisconsin.

"We know that planning saves tax dollars. In the long run, communities and the state should save money as a result of comprehensive planning," MacKinnon said."The inability of the Joint Finance Committee to see this speaks poorly of their vision."

At the League-Alliance legislative luncheon May 19, Gov. Jim Doyle asked local leaders from around the state to fight to restore the Smart Growth law.

The finance committee vote against repealing was a bipartisan vote, with two Republicans joining Democrats to support the law. But GOP opposition to comprehensive planning tarnished one of the shining examples of bipartisanship from the Thompson era, a former Thompson aide said.

"This was a classic example of Republicans and Democrats, environmentalists and business people working together on a problem facing this state,"  former State Revenue Secretary Mark Bugher, now director of the UW Research Park in Madison, told The Capital Times. "It was one of the most important pieces of legislation passed by the Thompson administration, real landmark land-use legislation. I'm disappointed they would want to reverse that."

The Milwaukee Journal Sentinel story is here.The Capital Times story is here.

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News Briefs

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...for better...or worse?

Neil Peirce: Collaborate or collapse. "Even today, many people leave urban areas in search of small towns where they expect the old, informal culture — and low costs," Neil Peirce wrote from Augusta, Maine last month. "But the system has veered off the tracks, with escalating costs and rising frustrations.

"And what's the top culprit? Sprawl, says Angus King, Maine's immediate past governor," Peirce said in his nationally syndicated column. "King's planning director, Evan Richert, found that when a small town in the path of suburbanization passes the 3,500-person mark, citizens start demanding a town manager, more police and professionalized services — and budgets start to soar."

Richert found  91 fire trucks serving 95,000 people within 20 miles of Augusta. And not one of the costly trucks was jointly owned, Peirce wrote.

"We pay due respect to local control but it comes at a high cost," Peirce quoted King as lamenting. "We have 205,000 school kids in 186 school districts, each with its own superintendent, curriculum, purchasing office — about one superintendent for each 1,200 kids." Column here.

 

Milwaukee Journal Sentinel: Don't pre-empt cities on minimum wage. Giving up local control over the minimum wage when lawmakers refuse to act is too high a price to pay for a boost in the pay of Wisconsin's lowest-paid workers, the Milwaukee Journal Sentinel wrote in an editorial. That's because future low-wage workers held hostage by the Legislature won't have recourse to their city councils if a minimum wage bill pre-empts local authority, the newspaper wrote. "If that future Legislature allows the tried-and-true system to work its magic, everything is dandy. If it intervenes again, the cities will be powerless to act in their own residents' interest," the Journal Sentinel wrote. "Taking away the cities' duty and ability to act will only ensure more legislative obstruction. Wage earners at the lower end deserve consideration now and in the future." Editorial here.

Sixteen states now have a minimum wage higher than the federal level of $5.15 per hour, according to TomPaine.com. Story here.

An Apology

"Dear League of Wisconsin Municipalities and Wisconsin Alliance of Cities member,

"At Thursday's legislative luncheon, a fellow alderperson and I distributed flyers to each of the tables regarding the effort to preempt local minimum wages like those adopted in Madison, Milwaukee, and La Crosse. I deeply regret both that I failed to identify the source of the flyers and failed to give due warning to all of the organizers of the event.

"To be clear, although both organizations stand firmly in opposition to preemption, the words on those flyers were mine and mine alone and not approved in advance by the League or Alliance. I apologize for any confusion or inconvenience this may have caused.

Austin King

District 8
Madison, WI"

The transportation bill before Congress misses the boat. Not to mention the plane, the bus, the train and the family car, according to Bruce Katz and Robert Puentes of the Brookings Institution. "The current bill takes an antiquated, anachronistic, and ultimately wasteful approach to transportation policy," they wrote in the Boston Globe. "It continues to pour more money into a broken system and makes no attempt at significant policy reform. It assumes that thousands and thousands of congressional earmarks, representing over $12 billion, somehow add up to a coherent, fiscally responsible national transportation policy. And it ensures that America's federal program will function mainly as a Rube Goldbergian revenue generation and distribution system for the gas tax it collects." Aside from that, it's a good bill, they added.  Just kidding. Column here.

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Upcoming Events    (click on underlined text for more)

June 7-8 Wisconsin Entrepreneurs' Conference Milwaukee
June 8-10 MEUW annual conference La Crosse
June 9 New Cities Project Chicago
June 28 water and sewer  rate analysis workshop Rockford, Ill.
July 21-22 Alliance meetings Racine
Sept. 15-16 Alliance meetings Whitewater
Nov. 10-11 Alliance meetings Neenah

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