Top Democrat opposes key provisions in 'historic' shared revenue plan
MADISON, Wis. (CBS 58) -- The Democratic leader of the state Senate is expressing opposition with a series of provisions included in Republicans' proposal to revamp how the state funds its local governments, known as shared revenue.
Senate Minority Leader Melissa Agard (D-Madison) said her biggest concern with Assembly Republicans’ framework unveiled last week is allowing Milwaukee and Milwaukee County to raise their sales tax through referendum.
"I am very concerned if this comes out tomorrow with a referendum attached to it that we're not actually helping Milwaukee," Agard said. "We are setting them up with higher benchmarks with more constraints."
As of Monday, the bill was still being finalized but Republicans confirmed it will include a series of policy proposals including a referendum for the city to levy a 2% sales tax and allow Milwaukee County to add another 0.375% sales tax to its current 0.5% sales tax.
.@RepTonyKurtz tells me the shared revenue bill should be released tomorrow.
— Emilee Fannon (@Emilee_Fannon) May 1, 2023
A provision to allow Milwaukee (city and county) to raise its sales tax through referendum will be included in the plan, which @SenatorAgard says she has issues with. https://t.co/CzMujwTV3o
Rep. Tony Kurtz, a Republican who's been drafting the bill, said he expects the proposal to be released Tuesday.
Republicans, who control the Legislature, don't need Democratic votes to pass their plan, but they do need support from Gov. Tony Evers. Evers met with GOP leaders Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu last week to discuss the proposal.
A spokeswoman for Evers declined to comment on whether he would veto or sign the framework of the bill which includes Republican policy proposals he's rejected in the past, such as banning local health officials' ability to closing businesses due to an epidemic or outbreak, requiring schools to track how many crimes occur on school property to mandating police officers in Milwaukee Public Schools.
"By inserting these additional provisions in this conversation simply because Republicans don't have another way of getting unpopular policy passed -- that does not seem like good government," said Agard. "It's not transparent."
Agard declined to say how she would vote on the plan since the details are still being finalized, but she expressed her caucus would have a difficult time supporting many of the policy provisions.
Last week, Milwaukee Mayor Cavalier Johnson and Milwaukee County Executive David Crowley stood by Assembly Republicans' side during a press conference that laid out aspects of the shared revenue plan. Vos called the bill "the single largest investment in local governments in the history of Wisconsin" and highlighted the on-going discussions he has with both Milwaukee leaders on the plan.
Both called it a work in progress and expressed concerns that voters may reject a referendum asking them to raise their taxes. Johnson and Crowley have tried to negotiate with lawmakers to remove the referendum provision and instead allow Milwaukee Common Council and Milwaukee County Board of Supervisors to increase their sales tax -- but those efforts fell short, sources tell CBS 58.
Kurtz said the referendum will stay and added it's up to Milwaukee leaders to convince voters to raise taxes to avoid a fiscal cliff.
"I tell constituents who are concerned this is not a bailout for Milwaukee," Kurtz said. "They have an opportunity to help themselves and I think that's where Assembly Republicans and the Senate are at…this is a lifeline. It truly is."
Both the city and county would be required to use any sales tax revenue to pay off its pension obligations, under the proposal.
Every local government would see a 10% boost in shared revenue, Rep. Mark Born, the co-chair of the state budget committee said. He added it would provide, "historic" and "major reform." Under the plan, each community would have to meet a maintenance of effort to distribute the funding towards to police, fire, and other essential services.
Overall, it would benefit smaller communities more by giving them more money, which is an area of the plan Waukesha County Executive Paul Farrow has issues with.
"If we're going to do this now and make it a one-time change for the next 20 years, I want to make sure we are putting components in that keep us on the right track going forward," Farrow said.
Farrow references how Waukesha is one of the lowest spending counties and has the second lowest tax rate. Under the plan, Farrow said they wouldn't receive enough shared revenue to cover services and the cost of inflation.
The proposal also includes an additional $300 million in incentives for local governments that come up with new ways to merge services. Beyond that, there's another $227 million available for local government programs tied to police, fire, EMS, emergency dispatch, transportation, and public works.
Farrow said Waukesha has already been consolidating services and was frustrated with the other limitations in the proposal on how counties and cities could use the new revenue to pay for services.
"Looking at the change with the 9-1-1 fund… we can't use that money to cover personnel costs and those are going because of inflation. If I'm handcuffed where I can't use new funds to provide for my personnel, that's going to put me at a detriment."