Assembly Republican share revenue plan: More money, Milwaukee tax hikes, strings attached
(The Center Square) – The latest plan to send more money to local governments across the state of Wisconsin comes with the promise of over half-billion dollars more, but there are some conditions.
Assembly Republicans unveiled their new shared revenue plan Thursday morning. It includes $227 million more in money to local governments; a $300 million “innovation fund” designed to get cities, counties, and other local governments to share services; millions more for EMS; and more money for police training.
The shared revenue plan also includes permission for Milwaukee County to add 0.375% to its sales tax, and includes permission for the city of Milwaukee to move its sales tax to 2%.
“Every community in the state of Wisconsin will see a minimum of a 10% increase,” Rep. Tony Kurtz, R-Wonewoc, told reporters.
The $227 million is 20% of Wisconsin’s statewide sales tax. Kurtz said going forward, money for local governments in the state will be tied to the growth of that sales tax.
“So if the state does well, our locals are going to do well,” Kurtz added. “That’s a key point. The formula for current shared revenue has been frozen since 2004. Our locals have not shared in the growth that the state had.”
But all that new money comes with strings.
The Assembly Republican plan earmarks the new shared revenue for public safety.
“The $227 million needs to go to some core services,” Kurtz explained. “Those core services are going to be law enforcement, fire protection, emergency medical services, emergency response communications, public works, and transportation.”
The city of Milwaukee, however, will be banned from spending any of its new shared revenue dollars on its streetcar, The Hop.
The Republican plan also includes a caveat that would limit the power of local health departments, and ban business closings of longer than two weeks if Wisconsin ever goes through another pandemic.
Assembly Republican budget chief, Rep. Mark Born R-Beaver Dam, said there’s “good general support” for the plan in the State Senate.
Senate Majority Leader Devin LeMahieu agreed, but isn’t committing to the entire proposal.
“Over the last few months there have been substantive, good-faith negotiations between both houses of the legislature and local government stakeholders from across the state. The Assembly announcement today is the product of those negotiations; however the final details are still being worked out,” LeMahieu said in a statement.
The top Democrat in the Assembly, Minority Leader Greta Neubaeur, said Democrats are also waiting to sign on.
““We still haven’t seen a bill draft from the GOP, and there is a lot more work to be done to ensure that we have a solution that works for the people of Wisconsin,” Neubauer said. “We look forward to continuing these conversations to give our communities the support they need to be successful.”
