Republican bill to aid local governments comes with strings attached. Here's what you need to know
State Assembly leaders on Tuesday released legislation they said would increase funding to Wisconsin's local governments ― a bill that also includes extensive policy changes that would apply to communities across the state on policing, hiring practices, quarries and more.
The legislation was released after Republicans, local government leaders and others had previewed the bill in a series of news conferences across the state last week.
The legislation comes after municipalities and counties argued they need increased revenue because the state's current funding structures are making it increasingly difficult for them to continue to provide services to residents.
The legislation would allow the City of Milwaukee to levy a sales tax and Milwaukee 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 allocate $226.4 million in supplemental aid for counties, towns, villages and cities to use for specific public safety, public works and transportation purposes.
More: Tony Evers wants the state to give more money to local governments. Here's how it would work.
A major caveat at this stage, however, is that much could still change as the Assembly bill moves through the legislative process on its way toward Gov. Tony Evers' desk.
Evers earlier this year offered a plan as part of his proposed two-year budget that would send $576.2 million back to local governments next year and separately open up new options for local sales taxes, if approved by voters.
Evers' spokesperson declined to comment on the bill Tuesday.
Here's what you should know about the new bill, according to analyses by the state Legislative Reference Bureau and Legislative Fiscal Bureau:
Milwaukee, Milwaukee County could up sales tax ― with voters' OK
Milwaukee and Milwaukee County would be able to impose sales taxes ― if approved by voters at referendum.
The city would be allowed to implement a 2% sales tax. Milwaukee County could add a 0.375% sales tax to its current 0.5% tax.
The bill requires that the funding be used for pension obligations at the city and county, which each have their own pension systems, and for public safety services.
The city and county would no longer be able to levy a sales tax once the pension obligations in their respective systems have been paid.
Whether Milwaukee and Milwaukee County voters would approve a sales tax is a major unknown.
That funding is key to helping the city and the county avoid significant cuts to services on which residents rely but could be a hard sell given local voters' sensitivity to pension issues.
How much could the sales taxes bring in for Milwaukee and Milwaukee County?
The city has estimated that the sales tax would provide about $120 million annually to put toward its unfunded pension liability while the county has estimated its new funding from a sales tax would amount to about $75 million a year.
Additional county and municipal aid for law enforcement, fire, EMS
The proposal would allocate $176.4 million in supplemental aid to municipalities across the state while $50 million would be distributed to counties.
The funding could be used for law enforcement, fire protection, emergency medical services, emergency response communications, public works and transportation.
The aid would first apply in the 2024-25 fiscal year. In each year afterward, the payments would be adjusted by the rate of growth in the state sales tax.
How much extra revenue could Milwaukee and Milwaukee County expect?
Under the proposed increase in supplemental aid, Milwaukee would expect to receive an aid increase of 10% or $21.7 million, from $217.5 million to $239.2 million.
Milwaukee County would expect to receive an aid increase of 14.6% or $6.9 million, from $47 million to $53.9 million.
See how much your community would receive at this link.
Bill puts limits and requirements on Milwaukee police, oversight
The legislation also curtails the powers of the civilian board with oversight over the Milwaukee Police and Fire Departments, removes local decision-making over the number of police officers the city would be required to have, and requires school resource officers in Milwaukee Public Schools.
The measures include:
The city would have to maintain law enforcement and Fire Department staffing, at minimum, at current levels. (According to the city Budget Office, there are currently 1,630 budgeted sworn positions in the Milwaukee Police Department, and 1,560 are filled. In the Fire Department, there are 729 sworn positions budgeted, with 684 of those currently filled.
The Milwaukee Fire and Police Commission would see its authority over policies of "control and management" of the Police and Fire Departments transfer to each department's chief. Those policies could be modified by a two-thirds vote of the Common Council.
Milwaukee Public Schools would have to ensure that 25 school resource officers are in schools during the school day and a "reasonable number" are present for other school activities. Milwaukee Public Schools cut its last contracts with Milwaukee police in 2020.
The bill limits Milwaukee's spending on 'the Hop' streetcar
Under the bill, the city would not be allowed to use tax money to develop, operate or maintain the streetcar.
It would also prevent the city from using tax incremental financing for developing or constructing streetcar extensions, with the exception of such costs for the lakefront line tied to the Couture apartment high-rise construction.
Expanding the streetcar is among the measures recommended in Milwaukee's new downtown comprehensive plan that was recently proposed by Mayor Cavalier Johnson's Department of City Development.
'Requirements,' 'limitations' imposed on Milwaukee County
The county would see fewer requirements and limitations than the city, under the legislation.
They would be:
A maximum of 5% of the county's total budget could be used for "cultural or entertainment matters or involving partnerships with nonprofit groups."
A two-thirds vote of the County Board of Supervisors would be required for net new program spending or positions.
Provisions on hiring, crime on school property, advisory referendums
The legislation also includes a host of other requirements and prohibitions that apply more broadly, including:
A prohibition on local governments "discriminating against or providing a preference in hiring or contracting based on race, color, ancestry, national origin, or sexual orientation unless it is required to receive federal aid."
A requirement that data be collected on criminal or ordinance violations that happen on school property or on school-provided transportation. The requirement would apply to public high schools and private high schools that participate in a parental choice program starting in the 2024-25 school year.
Local governments would have to certify that they have at least the level of police, fire and emergency medical services that they had the previous year. Those that did not satisfy the requirement would see certain funding reduced by 15%.
A prohibition on counties and municipalities holding advisory referendums.
A prohibition on local health officers ordering a business to close for longer than 14 days in order to control an outbreak or epidemic. The local government's governing body could approve an extension of up to 14 days.
The bill places conditions on Stewardship projects in the Northwoods
The bill would also change the process for how the state's joint finance committee handles the approval of stewardship projects.
For all projects north of U.S. Highway 8, the Department of Natural Resources would have to obtain a resolution supporting the stewardship project from every municipality and county that contains all or a portion of the land on which the project would occur. Money could not be provided to the organization proposing a project without the resolutions from the counties and communities.
The suggested change comes after a number of popular stewardship projects have drawn ire from local communities over the amount of proposed land to be protected. One such project is the Pelican River Forest, which would put thousands of acres of northern Wisconsin forestland under protection, to be used for sustainable forestry and recreation.
Bill limits how local governments can regulate quarries
The bill would also limit how nonmetallic quarries can be regulated by local governments. It would apply to quarries that provide materials "used primarily in the construction or repair of public transportation facilities, public infrastructure, or private construction or transportation projects are extracted."
It would bar local governments from requiring a quarry operator to obtain a permit if there wasn’t already an established ordinance requiring a permit before the quarry went into operation. It also bars the addition of new conditions to a permit while it is active.
Ordinances could not be applied retroactively to quarries already within communities that began operation before the ordinance went into effect.
Local governments also wouldn't be able to limit when extracting and processing minerals can be done if the minerals are for use in a public works project that requires nighttime construction or emergency repairs. Blasting at quarries could also not be limited, but companies would still be required to give notice to nearby residents about when blasting would occur. Local governments could also ask that studies be conducted on nearby wells and structures to ensure safety.
Blasting has caused concerns in Wisconsin communities before. In 2016, residents in Deerfield expressed concerns relating to blasting after a number of tombstones were damaged, according to a Wisconsin State Journal report, and over concerns over the potential for damage to a church nearby the quarry.
Public reaction expected Thursday
The Assembly Committee on Local Government is holding a public hearing on the legislation at 10 a.m. Thursday, when additional reaction to the proposed legislation is expected.
Laura Schulte of the Journal Sentinel staff contributed to this story.
This story will be updated.
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This article originally appeared on Milwaukee Journal Sentinel: GOP releases bill to increase money for Wisconsin local governments
