MADISON, Wis. (AP) — Wisconsin's Democratic Gov. Tony Evers called it a “historic day” before he signed a bipartisan bill on Tuesday that sends more money to Milwaukee and gives both the city and county the ability to raise the local sales tax in an effort to avoid bankruptcy.
SHARED REVENUE STORIES:
- Wisconsin shared revenue bill adds staffing quotas for Milwaukee first responders
- Public hearing on Wisconsin shared revenue plan
- City alders signal trouble when it comes to making a deal on shared revenue bill
- Shared revenue bill passes Wisconsin legislature. Here's why it is far from a done deal
- Latest shared revenue bill requires 25 police officers at Milwaukee Public Schools
The measure also sends 36% more money overall to every other smaller city, town, village and county in Wisconsin, part of a deal Evers struck with Republican legislative leaders to also increase funding for K-12 public schools and send more money to private schools that accept voucher students.
Evers signed the bill surrounded by a bipartisan group of state lawmakers, Milwaukee leaders and local officials in Wausau. Local governments have been clamoring for more state aid following years of cuts or stagnant funding that have forced cuts to essential services like police and fire protection.
“For far too long, our local communities have been forced to do more with less,” Evers said. “And we’ve seen the consequence of that play out in communities across Wisconsin.”
He said communities have been “forced to make impossible decisions about what essential services to fund.”
Milwaukee's leaders had warned of catastrophic cuts if the bill was not enacted. Milwaukee is struggling with an underfunded pension system and not enough money to maintain essential police, fire and emergency services.
State Sen. LaTonya Johnson, of Milwaukee, said at the bill signing ceremony that the city was “on the verge of insolvency” that would have required laying off hundreds of police and firefighters, among others. The additional funding provides a lifeline, she said.
“It is our city’s opportunity to start over,” Johnson said.
The roughly $1 billion in aid to local governments — known as shared revenue — would be paid for by tapping 20% of the state’s 5-cent sales tax. Aid would then grow along with sales tax revenue. The measure increases current aid by about $250 million statewide.
The new law also allows the Milwaukee Common Council and Milwaukee County Board to vote on raising local sales taxes, a power they did not have.
Some Republicans in the Legislature had wanted to require a vote of the people before those local sales taxes could be raised. But Milwaukee leaders, Democrats and some Republicans argued the need for more funding was too critical to leave to a referendum vote that could fail.
With Evers' signing the bill, the focus now shifts to those Milwaukee governing boards to see if they will vote to approve the increase.
The shared revenue program to fund local governments, created in 1911, has remained nearly unchanged for almost 30 years, despite overall growth in tax revenues. Shared revenue for counties and municipalities was cut in 2004, 2010 and 2012 and since then has been relatively flat.
The Legislature passed the bill on a bipartisan vote last week.
While the focus of the new law is sending more money to Wisconsin's local governments, it also includes a wide array of other provisions.
Those include cutting aid to communities that reduce the number of police officers and firefighters and banning public health officials from ordering businesses closed for more than 30 days without approval from a local governing board, which could extend closures for only an additional 30 days.
The law also forbids local communities from putting advisory referenda questions on the ballot, except those related to certain projects that would be funded with property tax money. The bill would not allow questions on hot-button issues like whether voters support abortion rights, accept Medicaid expansion or legalize marijuana, which many communities across the state have put forward in recent years.
The law also targets diversity, equity and inclusion efforts.
It prevents Milwaukee from using tax money for “funding any position for which the principal duties consist of promoting individuals or groups on the basis of their race, color, ancestry, national origin or sexual orientation.”
The law also says that no local government “may discriminate against, or grant preferential treatment on the basis of, race, color, ancestry, national origin, or sexual orientation in making employment decisions.”
It further requires Milwaukee Public Schools to return at least 25 police officers, known as school resource officers, to its schools by Jan. 1.
View statements from lawmakers regarding the bill's passage:
Wisconsin Gov. Tony Evers:
FOR IMMEDIATE RELEASE: June 20, 2023 Contact: GovPress@wisconsin.gov Gov. Evers Enacts Legislation Providing Historic Shared Revenue Increases for Local Communities Governor signs key portions of bipartisan compromise on shared revenue, including a 20 percent increase in support to most municipalities statewide, increasing school low revenue ceiling $1,000 per student WAUSAU — Gov. Tony Evers today signed Assembly Bill 245 [lnks.gd], now 2023 Wisconsin Act 12, relating to shared revenue, one of the most significant sources of funding provided by the state to local governments. The governor was joined by Wisconsin Department of Revenue (DOR) Secretary Peter Barca, State Sen. LaTonya Johnson (D-Milwaukee), and Wausau Mayor Katie Rosenberg, as well as other legislators, local elected officials, and stakeholders as he signed the bill, which provides a historic increase in support to local communities statewide and ensures the city of Milwaukee and Milwaukee County do not face an imminent fiscal cliff.
“To me, the issue of shared revenue has always been about doing the right thing for Wisconsin. I began working on this when I took office four years ago, and that effort began for me with this simple truth: that for far too long, our local communities have been expected to do more with less,” said Gov. Evers. “Local partners for years have had to make impossible decisions, forced to choose between paying for first responders, addressing PFAS, fixing the roads, and other critical priorities that affect the health, safety, and well-being of folks across our state.
“I believe the state should be doing its part to support our local partners and ensure our communities have the resources they need to meet basic and unique needs alike, period, and I’ve always believed that supporting our local communities is an area where we could work to find common ground and bipartisan support, and that’s exactly what we did.”
Earlier this month, Gov. Evers announced [lnks.gd] he, Majority Leader Devin LeMahieu (R-Oostburg), and Speaker Robin Vos (R-Rochester) reached a tentative compromise regarding shared revenue, contingent upon several provisions detailed below, including a historic investment in K-12 schools and education. Gov. Evers and Republican leaders negotiated to reach a compromise on shared revenue that includes at least a 20 percent increase in support to most municipalities statewide.
“I’ve always said much of the hard work that happens in our state happens at the local level. Whether it’s providing essential services like EMS, police, and fire, repairing streets, expanding affordable housing, ensuring kids and families have safe, clean parks, addressing water quality issues like PFAS, or supporting local libraries and public health, today means so many of our local partners will finally be able to make ends meet,” Gov. Evers continued. “To leave our state with a legacy of prosperity, we must fulfill our obligation to fund our communities—the future of our state, our economy, and our workforce depend upon it.”
Importantly, the compromise reached by Gov. Evers, Majority Leader LeMahieu, and Speaker Vos contains provisions ensuring the city of Milwaukee and Milwaukee County are enabled with the tools, flexibility, and resources to avoid insolvency, including requiring a two-thirds vote by the City of Milwaukee Common Council and the Milwaukee County Board of Supervisors to implement a local sales tax of two percent for the city of Milwaukee and 0.4 percent for Milwaukee County.
The ultimate agreement reached by Gov. Evers and Majority Leader LeMahieu and Speaker Vos represents a generational increase in the state’s commitment to local communities, and it ties local government funding to the state sales tax going forward, allowing for growth in the future.
A full breakdown of additional funding communities will receive under AB 245 is available here [lnks.gd].
“I will never stop fighting to do the right thing for our kids because I believe, as I’ve often said, that what’s best for our kids is what’s best for our state,” said Gov. Evers. “Today, we’re one step closer to making a historic investment in this budget for K-12 schools and education, and that includes providing more than $1 billion that can be used for our kids in the classroom, increasing the low revenue ceiling by $1,000 per student, while continuing to support school-based mental health services and setting aside funding aimed at improving literacy and reading outcomes across our state.”
In addition to enacting legislation making historic investments in local communities across Wisconsin, Gov. Evers also signed Senate Bill 330 [lnks.gd], now 2023 Wisconsin Act 11, which contains key portions of the governor’s negotiations to reach a bipartisan shared revenue compromise with Republican leaders to build upon Gov. Evers’ work to do what’s best for kids with historic budget investments in K-12 education statewide by:
- Providing more than $1 billion in spendable revenue for K-12 education while maintaining two-thirds funding, including a $325 per pupil increase in each fiscal year on revenue limits;
- Setting aside $50 million to improve reading and literacy outcomes for K-12 students (details for exact implementation of the funding have not yet been determined);
- Providing a per pupil aid increase for choice and independent charter schools;
- Investing $30 million over the biennium to continue the governor’s initiative to support school-based mental health services statewide;
- Reaching 33.3 percent reimbursement for special education; and
- Increasing the low revenue ceiling from $10,000 to $11,000 per student.
Milwaukee County Executive David Crowley:
FOR IMMEDIATE RELEASEJune 20, 2023
CONTACT:
Brandon Weathersby
414.469.3493, press@milwaukeecountywi.gov
County Executive Crowley on Gov. Evers Signing Local Revenue Reform into Law
MILWAUKEE, WI – This morning, Gov. Evers signed into law local revenue reform including authorizing a sales tax for Milwaukee County to avoid a fiscal cliff in just a few short years. County Executive David Crowley released the following statement following the news:
“Today marks another historic step forward for communities across the state looking to best serve their residents and set up future generations for success. For Milwaukee County, this brings us closer to avoiding a devastating fiscal cliff and continue critical service our residents rely on each day.
“Thank you once again to Governor Tony Evers, Senate Majority Leader Devin LeMahieu, and Assembly Speaker Robin Vos for coming to the table and producing bipartisan legislation that helps Milwaukee County address its unique financial challenges.
“As deliberations on the sole issue of additional revenue turn to local legislative bodies, it’s important that Milwaukee County, as an arm of the state, acknowledge the fiscal realities that we must confront. Reaching a fiscal cliff is undoubtedly the single biggest threat to improving quality of life for residents and setting up our region for long-term success.
“There is too much at stake for Milwaukee County to miss the mark on the opportunity ahead of us to avoid major services cuts and staff reductions across the board. This is a generational opportunity to secure our financial future and continue offering the services that keep residents healthy and safe.
“I look forward to productive conversations with county leaders and encouraging decision-making that aligns with community needs.”
###
Milwaukee Common Council President José G. Pérez:
June 20, 2023 President José G. Pérez (414) 286-8637
Statement from Common Council President
José G. Pérez
Today, Governor Evers signed AB245/SB301 into law, and now the work begins. I want to thank my colleagues for all of their engagement, support, and cooperation in getting us to this point.
Should the Milwaukee Common Council vote to implement a 2% sales tax, we will avert a fiscal calamity that has been years in the making. The only decision now before the Common Council is whether to accept a generational influx of revenue.
The Wisconsin Department of Revenue estimates that this sales tax would produce approximately $193 million a year, generated from everyone that utilizes our city and its services, not just its residents. We know that to maximize the revenue coming into the City in order to stave off drastic cuts in the next budget, we must move quickly. For this revenue to be recognized by January 1, 2024, an ordinance must be passed prior to the Common Council’s August recess.
If we delay, the City will lose at least $16 million a month. Not only can we not afford to refuse this revenue, but we also cannot afford to wait either. The first vote will take place at the Steering & Rules Committee on Monday, June 26, followed by a vote of the full Common Council at its meeting on Tuesday, July 11.
Also included in this legislation are provisions that severely impede our local control. I testified in opposition to these provisions at both the Assembly and Senate public hearings and directed our City’s lobbyists to work to remove them. Unfortunately, those efforts were unsuccessful, and these provisions are now state law. The entire Common Council has consistently opposed the policy provisions of this bill and we will continue to work to have these provisions reversed.
At the same Committee and Council meetings, we will be voting to amend the City’s legislative package to direct our lobbyists to begin efforts immediately to have those provisions removed from State statute.
We will also be taking up legislation that would double the funding for the Office of Equity and Inclusion and Office of African American Affairs, set aside funds for litigation to fight provisions of the bill that overstep our home rule, direct DPW/City Engineer to file an application with FTA for a grant to extend streetcar consistent with the downtown land use plan, and a reorganization of our Intergovernmental Relations Division.
The policy provisions in this bill will directly restrict our ability to achieve many of our goals, and clearly, they were written by those that do not reflect nor appreciate Milwaukee’s vibrant, diverse population. But these provisions will not dampen our creativity or innovation, nor our government’s work to help our residents. Despite the Legislature’s efforts to impose their values on us, we are resolute in our promise to operate our government in accordance with the values of our diverse community.
We will be prepared for the impact of these policy provisions, but would not be able to do that with an unmanageable budget deficit. I want to reiterate that the only thing before the Council in relation to AB245/SB301 is whether to implement a sales tax and accept the corresponding revenue. Not doing so could lead the City to severe cuts in services and a diminished quality of life for every resident.
Instead, I look forward to having a city budget process in which we debate the priorities and preferences among a reinvigorated slate of government services rather than the alternative of scraping the bottom of the barrel to provide the bare minimum. We are at an inflection point in the City of Milwaukee’s history and I am excited for what the future may bring.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
