MADISON, Wis. — Wisconsin Senate and Assembly Republicans are at odds over a key ingredient of a proposal long sought after by local governments, first responders, and others that would significantly boost state aid to pay for essential services.
The Assembly passed a wide-ranging bill Wednesday, following months of closed-door negotiations, that would increase aid at least 15% for all local governments in the state, and give Milwaukee city and county the ability to raise additional revenues if voters approve higher sales taxes. Milwaukee city and county leaders oppose that provision, which appears to also be a sticking point between Assembly and Senate Republicans.
But Republican Senate Majority Leader Devin LeMahieu told The Associated Press on Thursday that the Senate will likely remove that provision, and make other unspecified changes, when it votes on the bill, likely in early June. Mayor Cavalier Johnson is happy about this development, "I am yes. I think that's the most appropriate way to go. The most difficult part about a referendum is the complexity of the question."
The mayor warns Milwaukee will hit a fiscal cliff by 2025 if the city does not get its pension funding in order. The non-partisan Wisconsin Policy Forum reports the overall general city budget is about $650 million. But with the city's outstanding pension liabilities, Milwaukee could see a nearly $150 million hole or about 25 percent of the core budget.
"We would lose hundreds of police officers we would lose hundreds of firefighters, would see a haircut in their pension that's a future I do not want to see in the city of Milwaukee," Mayor Johnson warned.
The Senate and Assembly must approve the same bill before it would go to Democratic Gov. Tony Evers, who on Wednesday said he was confident that a bipartisan compromise could be reached.
But Vos told the AP that the Assembly would not pass a bill that does away with the vote requirement for Milwaukee.
"That could unfortunately kill the bill and all of our good work," Vos said. "Requiring voter approval for enacting a new tax, which was included in the original Evers proposal, should not be all that controversial."
Vos said on Wednesday he was "done negotiating" on the bill.
Evers' spokesperson sent us a statement:
"Gov. Evers agrees with Majority Leader LeMaheiu-given Milwaukee's urgent financial needs, a referendum is likely untenable based on other restrictions on local control included in AB 245 as introduced. The governor is willing to support allowing the City of Milwaukee and Milwaukee County to increase the sales tax with a supportive vote by local elected officials who are accountable to local taxpayers."
The pending bill boosts aid by at least 15% for every town, village, city, and county in the state except Milwaukee, which would go up 10%.
Wisconsin's local governments have clamored for years for more state aid to help cover basic services, including police and fire protection, after decades of frozen funding and cuts.
Under the bill, $1.5 billion in aid to municipalities - known as shared revenue - would be paid for by tapping 20% of the state's 5-cent sales tax, an idea Evers has supported. Aid would then grow along with sales tax revenue.
The bill would increase funding to counties, cities, towns, and villages by $261 million - at least a 15% increase for everyone - over the next two years, but that could only be spent on police and fire protection, emergency medical services, emergency response communications, public works, and transportation. The city and county of Milwaukee would see a 10% increase but could ask voters for more.
Under the bill, Milwaukee could levy a 2% sales tax and Milwaukee County could add 0.375% sales tax to its current 0.5% sales tax.
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.
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