Act 20: The Twilight Zone for Wisconsin Towns

The Governor continues his campaign to control municipalities under the guise of controlling property taxes for you and I. Under Wisconsin Act 20, the governor is now penalizing any municipality that needs more revenue than what the (beneficent) state government wishes them to have. It almost seems as if Gov Walker is saying, Hey, if you want my state money for your roads or other town needs then you have to accept my rules. Does anyone remember when taxes were supposed to be used for ALL the people they are collected from? Now it seems the Governor is putting his boot on the throat of municipalities instead of letting them control themselves. Here is what I mean:

1. What is the penalty for exceeding the levy limit?

   The penalty is a loss of shared revenue. This is a dollar for dollar penalty. For example, if a municipality exceeds its levy limit by $1,000.00, its state shared revenue payment will be reduced by $1,000.00. If the amount of the penalty is greater than the state shared revenue amount for that year, the remaining penalty amount is deducted from subsequent state shared revenue payments until the penalty is paid in full.

2. How does sec. 66.0602 (2m)(b) Wis. Stats. created in the 2013 Wisconsin Act 20 affect our municipality or county?

   Within the 2013 Wisconsin Act 20, the state created a law (sec. 66.0602 (2m)(b), Wis. Stats.), which can be summarized as:

   On or after July 2, 2013, if a municipality adopts a new fee or a fee increase for covered services (which were partly or wholly funded in 2013 by property tax levy), that municipality must reduce its levy limit in the current year by the amount of the new fee or fee increase, less any previous reductions. This also applies to payments in lieu of taxes.

   For more information, view the Levy limits – 2013 WI Act 20 fact sheet.

So if you are a municipality and your budget exceeds your levy limit, you once could go to the town’s people and ask for an increase. Gov Walker has squashed that approach by saying if the town approves an increased levy OR if the town assesses a fee to pay for something that once was paid entirely by taxes, the state will withhold money from the town as a kind of punishment for balancing its budget.

Shame on Gov Walker for punishing towns who try to balance their budgets.

Makes me think that the State of Wisconsin might be seeking an excuse to enact Michigan-like legislation to take over distressed municipalities in Wisconsin. It is all about the power, isn’t it?