Assembly Speaker Vos: Republican caucus is 'done negotiating' on local government funding bill

MADISON – Assembly Speaker Robin Vos said Wednesday his caucus was “done negotiating” on sweeping legislation Republican lawmakers passed Wednesday night aimed at boosting funding for local governments that the Democratic governor said he wanted to continue discussing.

Assembly Republicans on Wednesday released revisions to a bill that boosts state funding known as shared revenue and implements policy changes in communities across the state on policing, public health, quarries and more. The revisions were made just before lawmakers were set to meet on the Assembly floor to vote on the legislation.

Update: Republican rift over referendum requirement puts municipal funding bill in jeopardy

Gov. Tony Evers said Wednesday morning he was “optimistic” about finding a compromise supported by both houses of the Legislature, stakeholders and his office. But by the end of the day, Vos said discussions were over even as Evers’ spokeswoman said the governor was looking forward to continuing them.

"We have negotiated in good faith literally for months. ... Now it's time to act," Vos told reporters before the floor session.

“Nothing has changed since the governor’s statement this morning — the governor hasn’t signed off on any amendment, but he looks forward to continuing negotiations with Republican leaders in the weeks ahead,” Evers’ spokeswoman Britt Cudaback said in a statement minutes later.

The bill was passed, 56-36, with all Democrats opposing and three Republicans opposing the proposal. GOP Reps. Scott Allen of Waukesha, Janel Brandtjen of Menomonee Falls and Chuck Wichgers of Muskego joined Democrats to vote against the bill.

Democrats echoed the governor's desire to keep negotiating its provisions and citing the speed at which the legislation was taken up after being amended.

Bill author Rep. Tony Kurtz, R-Wonewoc, said the bill was a result of months of negotiations including a rare meeting of Evers, Vos and Senate Majority Leader Devin LeMahieu.

"To let this opportunity go truly hurts the entire state of Wisconsin," Kurtz said. "It's something that has taken decades to get to."

The legislation could change further once the state Senate takes it up. LeMahieu has questioned the wisdom of the Assembly proposal's requirement that new Milwaukee and Milwaukee County sales taxes be implemented only if approved by voters. He did not say Wednesday whether he supports the Assembly's approach.

The bill would allow the city to levy a sales tax and the county to add to its current sales tax to address pension challenges and public safety services ― if approved by voters ― and would move their new employees to the state pension system.

The proposal would also boost supplemental aid for counties, towns, villages and cities to use for specific public safety, public works and transportation purposes.

Hours before the Assembly met Wednesday, Evers, a Democrat, said he was "optimistic and hopeful" about the ability to find compromise with the Republican-controlled state Legislature. The message stood in contrast to his previous threat to veto the legislation over what he said was a need for more local government funding and his concerns about the bill's restrictions on decision-making by local governments.

"Today, we are in a much better place than we were just two weeks ago. All parties have been willing to set differences aside, all parties have worked to operate in good faith, and all parties have come to the table committed to finding common ground — and for that, I am very grateful," he said in a statement.

More: Buildings continue to rise in Milwaukee while its finances dry up. What explains a tale of 2 cities?

More: Republican bill to aid local governments comes with strings attached. Here's what you need to know

The funding proposal comes in response to a push for increased revenue from municipalities and counties across the state that argue the state's current funding structure is making it increasingly difficult to provide services to residents.

The bill includes a litany of proposed policy changes, in addition to increased funding through shared revenue — money the state returns to local governments.

Sales tax referendum

The referendum requirement has been among the most hotly debated elements of the bill because both Milwaukee and Milwaukee County are depending on the revenue that would be generated by the new taxes to avert significant budget cuts.

The city in particular is facing a steep "fiscal cliff" in 2025 without additional revenue options from the state. At that point, city officials expect huge cuts to services such as police officers, firefighters, libraries and more.

Milwaukee and Milwaukee County residents would feel the pain of those cuts but so, too, would southeast Wisconsin and the state more broadly, locals argue.

LeMahieu told 620WTMJ that he did not think the requirement that voters approve the new sales taxes for Milwaukee and Milwaukee County is the best way forward because the referendums could fail — a concern that Milwaukee leaders have also voiced.

A spokesman for LeMahieu did not respond to questions from the Journal Sentinel about whether Senate Republicans approve of the revised bill. A spokesman for Milwaukee Mayor Cavalier Johnson declined to comment.

A spokesman for Milwaukee County Executive David Crowley said the county appreciated Vos' "willingness to continue engaging on providing a solution" but that a unanimous vote on issues of this magnitude "has not occurred in recent memory."

As written, the legislation would allow the City of Milwaukee to levy a 2% sales tax while Milwaukee County could add a 0.375% sales tax on top of its current 0.5% tax, if voters approve.

At those rates, Milwaukee County's sales tax collections could be expected to increase by about $72.6 million annually, assuming 5% growth for 2023, 2% growth for 2024 and a Jan. 1, 2024, effective date, according to a fiscal estimate prepared by the state Department of Revenue.

With a 2% sales tax in the City of Milwaukee — and assuming the city's share of the county sales tax base is 50% — sales tax collections would be about $193.6 million starting in 2024, the report states.

If both the city and county sales taxes were implemented, taxable goods purchased in the city would be subject to both sales taxes.

Police in Milwaukee schools retained, training added

The legislation would make a series of changes to law enforcement in Wisconsin, particularly in Milwaukee and in Milwaukee Public Schools.

Assembly Republicans retained language requiring Milwaukee Public Schools officials to hire 25 new law enforcement officers to be stationed on school grounds, which is opposed by school board officials.

The revised bill also includes language that requires the new school officers to complete 40 hours of training sponsored by the National Association of School Resource Officers. Vos told reporters Wednesday the training requirement was a request from Evers, a former state superintendent and public school educator.

Wisconsin communities spent $2.81 billion in 2021 and $2.73 billion in 2020 on law enforcement, fire and emergency medical services, the state Department of Revenue estimate states.

Alison Dirr and Molly Beck can be reached at adirr@jrn.com and molly.beck@jrn.com.

Need more help with voting questions? The Milwaukee Resource Guide is here to help. Have something you want answered? Submit a question.

Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.

DOWNLOAD THE APP: Get the latest news, sports and more

This article originally appeared on Milwaukee Journal Sentinel: Vos: GOP caucus is 'done negotiating' on local government funding bill