GOP leaders clash over proposal to raise Milwaukee's sales tax, putting bill in jeopardy

 

MADISON, Wis. (CBS 58) -- The Legislature's top Republican leaders are in a tiff over a multi-million bill that would increase the amount of money local governments receive while also addressing Milwaukee's looming fiscal crisis.

Senate Majority Leader Devin LeMahieu (R-Oostburg) said he won't support a key provision in the bill Assembly Republican support to allow the City of Milwaukee and Milwaukee County to raise their sales tax through referendum, putting the bill in jeopardy.

It comes after Assembly Speaker Robin Vos (R-Rochester) said his caucus was "done negotiating" the sweeping proposal while Gov. Tony Evers had plans to continue discussions in hopes of finding compromise.

"It's unfortunate that he is drawing the line in sand now with his version of the bill and stopping negotiations on a bill that not everyone is in agreement on," LeMahieu said.

LeMahieu prefers letting the Milwaukee local officials vote and levy a 2% sales tax for the city and allow the county to add a 0.375% sales tax on top of its current 0.5% tax, a move that Vos said would "unfortunately kill the bill and all of our good work."

"The common council and the county board have created this pension problem over decades of mismanagement… if we are going to give them a tool to rectify the issues they are facing I think it's incumbent on their bodies to take that tough vote," LeMahieu said.

LeMahieu said next week he will refer the original bill to committee, ignoring the amendment Assembly Republicans passed Wednesday.

Britt Cudaback, a spokeswoman for Gov. Evers, welcomed LeMahieu's willingness to keep the door open for negotiations and echoed 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."

Milwaukee Mayor Cavalier Johnson said he's waiting to see how the legislative process plays out once the bill reaches the Senate floor.

"I'm just hopeful in the end we are in a stronger position to keep our services running," Mayor Johnson said.

Milwaukee Common Council President José Pérez didn't weigh in on the sales tax issue but noted the "job is not finished" after the Assembly vote.

"In my view, this is certainly not the end."

Regardless of who has the power to raise taxes, Sen. LaTonya Johnson (D-Milwaukee) said more residents need to be aware of what's at stake if the sales tax increase fails.