KEY POINTS:
- Assembly Speaker Robin Vos and Milwaukee Mayor Cavalier Johnson announced they have agreed on a framework that would essentially transform how the state funds local governments.
- For the city of Milwaukee, this shared revenue plan may be its ticket to dodging a major fiscal crisis.
- in exchange for essentially rescuing them from the looming financial crash & burn, the liberal city would need to adopt more conservative policy positions.
- The state currently divides $753 million annually across its counties and municipalities.
- Under the recently announced plan, 20% of WI sales tax collections would support local governments.
Wisconsin Republicans revealed a local government funding plan at press conferences across the Badger state. Shared revenue has been frozen for about two decades.
Assembly Speaker Robin Vos and Milwaukee Mayor Cavalier Johnson announced they have agreed on a framework that would essentially transform how the state funds local governments.
Following the press event at the Wisconsin Center, including various state lawmakers and local officials from Southeast Wisconsin, many questions remain unanswered as the plan’s details haven’t been set in stone yet.
However, the conference did release some new details regarding what the plan consists of. For the city of Milwaukee, this shared revenue plan may be its ticket to dodging a major fiscal crisis. However, in exchange for essentially rescuing them from the looming financial crash & burn, the liberal city would need to adopt more conservative policy positions.
The state currently divides $753 million annually across its counties and municipalities. Under the recently announced plan, 20% of WI sales tax collections would support local governments.
Without seeing the bill, it’s challenging to determine precisely how the state plans to divide the new shared revenue pot. However, Vos and other Assembly GOP leaders mentioned that every community in Wisconsin would receive at least a 10% increase in state funding, and the plan would give Milwaukee and Milwaukee County the option of increasing their sales tax.
The shared revenue plan will contribute 20% of state sales tax revenue to local governments, translating to about $1.5 billion.
It’s said that over $500 million would go towards public safety and innovation. Approximately $300 million would go into an innovation fund to encourage cost savings, consolidation, and other optimizations, while $227 million would support law enforcement, emergency medical services, public works, and transportation.
Here’s what we know regarding the Innovation & Public Safety Funds:
| Innovation Fund | Public Safety Fund |
| Three-year pilot program | Triples funding for existing grants to local governments to upgrade 911 systems |
| Financial incentives for local governments that successfully optimize services | Provides significant increases for EMS providers to go towards ambulances, equipment, and durable medical supplies |
| Allows local units of government who contract with private or non-profit entities to provide services and recognize savings to qualify for innovation fund payments | Doubles state reimbursement funds for officer training costs |
| Ensures law enforcement services are maintained and not subject to being cut |
The main idea behind this plan is to put more tax dollars back into smaller, rapidly growing communities; it’s also to help relieve some of the pressure on certain cities that are in suffocating amounts of debt, such as Milwaukee.
The final budget is expected to be signed by Gov. Tony Evers in early July.
