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Shared revenue bill passes Wisconsin legislature. Here's why it is far from a done deal

A 2-percent sales tax increase for the city of Milwaukee alone is projected to generate $15 million a month.
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MILWAUKEE — The plan to help Milwaukee avoid bankruptcy shifts from Madison to Milwaukee for two more critical votes. The 2-percent sales tax increase for the city of Milwaukee still needs approval by the city’s Common Council, and the Milwaukee County Board of Supervisors would still need to sign off on a 0.4-percent sales tax increase.

A 2-percent sales tax increase for the city of Milwaukee alone is projected to generate $15 million a month.

Mayor Cavalier Johnson says this shared revenue bill will avert a disaster for Milwaukee. He says the city is headed towards a fiscal cliff if neglected pension liabilities are not addressed by 2025. “It will go to the governor's desk, I'm certain he will sign it and it will come here in-house to the city of Milwaukee and I believe we'll have the votes to get that passed as well... I believe we will have the votes to get it through the Common Council.”

Alderman Bob Bauman says at this point, he is not happy with this deal. “I may change my mind based on all the facts and circumstances, but today is arguably one of the worst days in the history of Milwaukee.”

Bauman points to the strings attached to the bill, which include not allowing sales tax dollars to fund The Hop, bringing back school resource officers in Milwaukee Public Schools, and giving the Milwaukee Police Chief the power to set policies instead of the Fire and Police Commission.

The mayor says, “All of those things will be law as soon as the bill is signed; so the only question that's before the Common Council is whether or not we're going to generate the revenue we need to stay solvent.”

Meanwhile, the Milwaukee County Board of Supervisors would have to approve increasing the county sales tax by 0.4 percent.

Supervisor Shawn Rolland is for it. “In terms of where I stand on it - I just feel like Milwaukee County is headed for a fiscal cliff. The consequences of voting against it would be disastrous we just have to do this," said Rolland.

Supervisor Steve Taylor is not as sold. “If we had a vote today I mean there's no way I’d be voting for it because you'd be voting blind. Have a financial analysis done to show where that money goes and what's left to fix the backlog," said Taylor.

He anticipates a vote by the county board in September and hopes by then he will have held several town halls to hear from his south side constituents. Showing increasing Milwaukee city and county sales taxes, is far from a done deal.


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