Is Wisconsin on the brink of a big change in shared revenue? For decades the gap has been staggering.
Republican lawmakers are expected to announce plans to increase shared revenue during a series of news conferences around the state Thursday.
A 2022 report from the Wisconsin Policy Forum illustrates the issue local communities are dealing with.
State income tax collections have more than tripled since the early 1990s to more than $9 billion in 2021, while shared revenue payments to fund local governments have actually gone down.
"What we have here really is a clear and present danger. The city of Milwaukee is one of the few cities in the United States that doesn't have access to a sales tax. They have a budget crisis, that’s real," said Tim Sheehy president of the Metropolitan Milwaukee Association of Commerce. “What I hope we hear tomorrow ( Thursday) is a clear and present answer to that.
Sheehy was a guest on @TheTable Wednesday night as state Republican leaders prepare to announce a "bipartisan shared revenue proposal" Thursday to increase state aid to local communities, according to Assembly Speaker Robin Vos' office.
In addition to a much-needed shared revenue increase, Sheehy wants to hear what lawmakers have to say about a sales tax increase to help the growing financial needs of the city of Milwaukee and Milwaukee County.
Milwaukee says it is facing heavy pensions obligations that have forced budget cuts over the years to city services.
Sheehy believes a bump in the sales tax for the city and county would help pay for services.
"What it means for taxpayers is that we're going to be able to address Milwaukee's pension problems which are which are large, but more importantly, that the city is going to be able to deliver and the county is going to be able to deliver the services that we all use, public safety, police and fire, parks."
Governor Tony Evers's 2023-25 budget proposal also includes a big increase in share to local governments and he would allow a local sales tax increase if approved by taxpayers in a referendum.
Any budget proposal would have to work its way through the Republican-controlled legislature before reaching the Governor's desk.
"I'm hoping tomorrow that we hear that we're 90% on the way there," said Sheehy.
Watch the full conversation in the video at the top of this article.
Charles Benson and Shannon Sims interview key people in our community during TMJ4's @TheTable segment every weeknight at 10 p.m.
