State Republican's Shared Revenue Bill Puts Emphasis on Small and Rural Communities

Friday, May 5th, 2023 -- 11:00 AM

(By Anya van Wagtendonk, Wisconsin Public Radio) Under the new system proposed by Republicans to share state funding with local governments, some smaller Wisconsin communities would receive increases of several hundred percent, while the cash-strapped city of Milwaukee would see its state funding grow by 10 percent.

According to Anya van Wagtendonk with Wisconsin Public Radio, no communities would see their funding cut under the plan, which has the backing of local government leaders throughout the state, including in Milwaukee.

But the new formula proposed by legislative Republicans to distribute a supplemental $227 million state fund for local governments puts an emphasis on small and rural communities. The new formula "close(s) a gap on winners and losers," said Sen. Mary Felzkowski, R-Irma, the lead author of the plan in the state Senate.

Felzkowski said lawmakers are close to a final deal on the proposal, which is scheduled for its first public hearing in a state Assembly committee Thursday. But some Democrats, particularly those from Milwaukee, say that while cities send the most tax money to the state, the new formulation doesn't send enough back to those residents.

The extra funding in the GOP bill would be distributed across the state to help pay for police, firefighters, emergency medical services and public works. Every community would receive an increase of at least 10 percent, though some small towns will see increases that are several fold larger.

Since 2004, local communities have received funding according to population size. But under the new formulation, towns and cities will receive funding according to a broader combination of factors.

Municipalities with populations under 5,000 would see a higher "multiplier" for state funding, meaning they'd receive more funding per resident than larger communities.

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