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Legislative Update

Legislative Update. Curt Witynski, League of Wisconsin Municipalities. 2013-15 State Budget. In 2011-2013 Budget, Municipalities took $100 million Hit to Help Solve State’s Financial Difficulties. 7 percent cut in total Shared Revenue Funding for cities, villages and towns ($47.7 million).

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Legislative Update

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  1. Legislative Update Curt Witynski, League of Wisconsin Municipalities

  2. 2013-15 State Budget

  3. In 2011-2013 Budget, Municipalities took $100 million Hit to Help Solve State’s Financial Difficulties 7 percent cut in total Shared Revenue Funding for cities, villages and towns ($47.7 million). 41 percent cut to Recycling Grant Program ($13 million). 6 percent cut in funding for general transportation aids (applied to cities and villages only, not towns) ($30 million). 10 percent cut in mass transit aids ($11.8 million). 10 percent cut in payments for municipal services program ($2 million).

  4. 2013-15 Budget, AB 40 Timeline February 20, 2013: Governor’s Budget Introduced March-May 2013: Legislature Budget Review (JFC) April 2013: Public Hearings on Budget April-May 2013: JFC amends/modifies AB 40 June 2013: Budget Finalized

  5. State Budget Begins in Rare Territory The 2013-15 state budget is not expected to have a structural carry-over, according to state estimates. A structural deficit is projected to return in the 2015-17 state budget.

  6. Structural Deficit ($ Millions) All figures indicate amounts necessary to produce a balanced state budget. A surplus is shown for 2013-15

  7. Proposed State Budget Spending Increases

  8. New State Positions FY 15 FTE Position Changes Over Base +710.58 FTE

  9. Individual Income Tax Cut Estimated Income Tax Reduction: $343 million

  10. Levy Limits

  11. Levy Limits Under AB 40, local governments may increase their levies to match any growth in equalized value due to net new construction. Limited carry over of unused levy capacity allowed. Supermajority vote required. Maximum carryover limited to .5% of previous year's total levy.

  12. Levy Limits Repeal of Exemption from Levy Limit Negative Adjustment. AB 40 deletes the last sentence in Wis. Stats. sec. 66.0602(2m) exempting a municipality that did not carry forward unused levy capacity in 2011 from the requirement that it adjust its levy limit down whenever its debt service on debt issued before July 1, 2005 is reduced.

  13. Levy Limits – Referendum Option Not Used Since the state first imposed property tax levy limits in 2005, as of last fall only 14 out of over 1,800 cities, villages, and towns have obtained permission from the voters in a referendum to exceed the limits. City of Racine voters just denied approval to exceed levy limits by 2.5%.

  14. Status Quo for Shared Revenue and other State Aid Programs AB 40 maintains current funding levels for shared revenue, general transportation aids, expenditure restraint, payment for municipal services program, recycling grants, and mass transit operating assistance. Last state budget made substantial cuts to all but Expenditure Restraint Program. Governor declined to restore any of those cuts.

  15. Mass Transit Aids Shifted to General Fund Under AB 40, the Mass Transit Operating Aids program is to be funded from the general fund instead of the transportation fund in fiscal year 2014-2015.

  16. Expenditure Restraint Program Change AB 40 includes language excluding expenditures provided by a municipality on behalf of a school district or other unit of government pursuant to a contract from being counted as an increase under the expenditure restraint program's budget growth test.

  17. Residency Preemption AB 40 prohibits local governments from imposing or enforcing residency requirements on municipal employees.

  18. Rules Governing Rehiring of WRS Annuitants AB 40 increases the break in service requirement from 30 to 75 days. Any WRS annuitant returning to state or municipal employment in which he or she is working two-thirds or more of full-time will have his annuity terminated.

  19. Changes to the Budget League is Seeking Restore cuts to Shared Revenue Program Restore cuts to GTA and Mass Transit Aids Broaden ability to carry over unused levy capacity. Allow levies to increase by new construction rather than net new construction. Restore exception to negative debt adjustment for debt issued pre 7-1-05.

  20. Changes to the Budget League is Seeking Restore exception to negative debt adjustment for debt issued pre 7-1-05. Remove prohibition on residency requirements from the state budget. Clarify meaning of language making design and selection of health plans offered to public safety a prohibited subject of bargaining.

  21. Other Recently Introduced Bills SB 48/AB 23 – Requiring municipalities to pre-fund on an actuarial basis post-retirement health benefits offered to new employees beginning in 2015. AB 75 – Making county shoreland ordinances inapplicable within annexed/incorporated territory.

  22. Other Recently Introduced Bills SB 112– Repealing requirement that counties incorporate municipal master plans into their comprehensive plans. AB 22/SB 15 – Increasing maximum allowable municipal court fee from $28 to $38.

  23. Other Recently Introduced Bills AB 57/SB 66 – Increasing from $400,000 to $750,000 the maximum payment that the WI Dept. of Financial Institutions can make to a public depositor for losses from a single failing financial institution.

  24. Other Recently Introduced Bills AB 76 – Clarifying sales tax exemption for building materials that become part of a local government facility applies if materials are purchased by the construction contractor.

  25. League’s Legislative Agenda Timely and dependable information from the state. Reduce interest municipalities pay on property tax refunds. Exempt water tower maintenance from prevailing wage law. Exempt restaurants from liquor license quota.

  26. Bad Bills we Anticipate will be Introduced Prohibiting municipal water and electric utilities from placing unpaid tenant’s utility charges on the landlord’s property tax bill. Reducing municipal discretion on use of room tax revenue. Changing method for valuing billboards for property tax purposes.

  27. Problem Bill we Anticipate will be Introduced Elimination of 75 cent police and fire protection surcharge on telephone bills. Fee provides the state annually with $50 - $60 million in revenue, which is used to help fund shared revenue program.

  28. Questions and Comments

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