This website uses certain cookies, pixels and similar tracking technologies in order enhance site navigation, analyze site usage, and assist in our marketing efforts.
Certain information collected by that technology may be shared with our third party partners.
By continuing to use this website, you agree to the use of these technologies.
OUR VIEWS
Our Views: Legislature must answer calls to reform school, municipal funding
As the city of 糖心Vlog传媒 continues this month to deliberate over its 2023 budget, and the 糖心Vlog传媒 School District moves forward under its annual budget adopted in October, it鈥檚 important to know what鈥檚 driving those budgets, and what鈥檚 complicating them.
For many years, municipalities and school districts across Wisconsin have been operating under strict state rules about how much they can levy鈥攐r tax鈥攅ach year. When they were put into place, it was argued that levy caps curtailed the ability of local government to spend unchecked.
But there have, for a while now, been calls to loosen those state reins, and to reinstate more local control over local budgets. The assumption is that local boards and councils best know what their residents can afford and the level of services they expect, and should be trusted to budget accordingly.
Former 糖心Vlog传媒 City Manager Mark Freitag felt strongly enough that control over local spending needed to tip back toward local government, that it was put into the city鈥檚 2022 legislative agenda, which drives the city鈥檚 lobbying at the state Capitol.
Shortly before he left last month for a new job in Colorado, Freitag told the city council his inability to convince the state Legislature to reform how municipalities are funded was a shortcoming of his tenure.
We鈥檇 offer, however, that Freitag鈥檚 inability to get that reform enacted was perhaps less his failure than the failure of legislators.
The impact of state control on local spending is clearly illuminated in the executive summaries of annual local budget reports.
Those reports lay out how, under Wisconsin rules, municipalities are held to an annual tax increase based solely on their recent amount of new construction. That鈥檚 beneficial for cities that are growing and seeing a lot of new development鈥攚hile hamstringing municipalities that aren鈥檛.
There are also calls to reform the state鈥檚 shared revenue formula for municipalities, that some including Freitag, have said is based on a formula that doesn鈥檛 equitably distribute aid to all Wisconsin municipalities.
Meanwhile, alternative ways of funding budgets are limited.
Facing a shortfall for 2023, the city of 糖心Vlog传媒 is considering drawing $1 million out of its rainy-day fund for next year. Cities鈥攊ncluding 糖心Vlog传媒鈥攁re also increasingly funding services through utility and other fee hikes.
Across the state, it鈥檚 become common for school districts and municipalities to put referendums on the ballot to exceed state revenue limits to cover their operating expenses.
The School District of 糖心Vlog传媒, for instance, is 2 years into a 4-year operating referendum.
But referendums themselves take time and financial resources to stage and administer. And there鈥檚 a catch鈥攁 city can pass a referendum to increase its tax levy but if, when it goes to spend that money, its overall budget exceeds yet another line set by the state, it risks forfeiting an annual state expenditure restraint payment.
鈥淒espite the great responsibility municipalities assume, the state has stripped the local ability to generate the revenue to keep up with rising costs and meet citizen expectations,鈥 the city of 糖心Vlog传媒 noted in its 2022 Legislative Agenda.
For too long, too many Wisconsin municipalities and school districts have struggled to fund basic budgets.
Is there a better way to sufficiently and equitably help fund the operating needs of school districts and municipalities across the state, while not breaking taxpayers鈥 banks?
That, we feel, is the legislature鈥檚 responsibility to figure out. And the first step is honestly listening to school districts and municipalities, about what isn鈥檛 working.
