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Budget Updates
The co-chairs of Joint Finance, Sen. Howard Marklein (R- Spring Green) and Rep. Mark Born (R- Beaver Dam), have spoken publicly about the budget and the budget process twice in the last week. The first was on Tuesday, April 1 prior to the Joint Finance Committee agency briefings.
Marklein: We have never done anything significant until we get the final Fiscal Bureau projections, and they usually come in around May 15. So, I can’t imagine us doing substantive decisions on any of the big agencies until May 15 when we get those Fiscal Bureau projections…I would hope we could start beginning mid to end of May. I think we’re also waiting for the state Supreme Court decision on the 400-year veto because that K-12 spending is our largest expenditure of tax money. I would kind of like to know what the court has to say before we start doing a whole lot of substantive decisions in the budget.
Born: I think the important thing is right now we’re on track. If you would have asked anyone on April 1, my first budget on the committee (2017). If you’d asked anyone if we were going to be delayed, we would have said no because we didn’t know that two months later transportation discussions were going to delay a budget. Right now, we’re on schedule. Are there things that could delay the budget? Sure…Howard mentioned some lawsuits. Some of them might be settled soon. Some of them might not be. Depending on what route we choose to take, those could delay a budget. The federal government’s making changes right now. They really haven’t impacted the states yet, but they could at some point. That could impact the numbers we get in May.
The second was Wednesday, April 2 prior to the Joint Finance Committee public hearing held at Kaukauna High School.
Marklein: We haven't gotten anything real substantive, obviously, and we probably won’t for another month and a half or so. There's a state Supreme Court Decision out there that I think we need to get that resolved. That opinion from the state Supreme Court, which has to do with the 400-year veto that the governor did last time. So that needs to get resolved.
Born: The Joint Finance Committee spent a couple of hours yesterday with the Department of Corrections Secretary talking about this and other issues. Like with any plan, there are some good things in it. One part of that is closing Green Bay Correctional. There are some things that need to be worked on. So, we’re working through our normal process on the capital budget…I think there’s support, and I think both causes want to work towards the eventual goal of closing Green Bay, as well as doing some other important reforms for the prison system moving forward.
Joint Finance Holds First Public Hearing
The Joint Finance Committee held the first of four public hearings on Wednesday at Kaukauna High School. Members of the public testified in two-minute intervals from 10 am until 4 pm. The hearing was scheduled to go until 5 pm, but testimony slips ran out around 4 pm. As in previous years, there was a significant number of people testifying in support of more funding for K-12 schools, support for childcare services in the state, expansion of Medicaid, and needs of the state criminal justice system. There was also testimony regarding more local needs.
Village President Mary Kardoskee, from the Village of Ashwaubenon, discussed state assistance for the public safety needs of the NFL draft and also highlighted the shortage of state funding for the payment of municipal services program which covers a portion of the cost for municipal services to be provided to state facilities. Ashwaubenon Village Manager Joel Gregozeski discussed transportation funding needs at the local level and requested increases in general transportation aids and the local roads improvement program, among others. Gregozeski also highlighted increasing state investments to the environmental improvement program for water and wastewater infrastructure.
Representatives from the Northeast Wisconsin Stormwater Consortium advocated for clean water initiatives and requested investments in water infrastructure and environmental programs.
One person from Outagamie County Highway testified asking committee members to help with eminent domain for local road rebuilding. She said while there was support from the community for the new roads, a “few property owners either refuse to cooperate or are demanding exorbitant prices” for their land. She asked members to review the laws and help provide relief at the local level.
Several people spoke regarding the financial strain the City of Manawa has faced since the July 5, 2024, flood. Mayor Mike Frazier, explained that the heavy rainfall caused the mill pond to overflow and the subsequent damage to the city’s infrastructure, including the wastewater treatment plant, was significant. He said the city has a debt limit of $5.7 million and $4 million has already been loaned out for various projects. They were requesting state support for the replacement of the dam, saying the infrastructure cost is beyond their tax base’s capacity to fund.
Fire Chief Travis Teesch from Neenah Menasha Fire & Rescue said their local budgets are “handcuffed”. He said he felt Act 12 was well intended, but “fell short of helping departments like mine.”
Mayor Tony Penterman, from the City of Kaukauna, discussed transportation funding. He emphasized that quality transportation infrastructure is the “backbone of Wisconsin” and that quality roads allow for economic growth, improve public safety, reduce congestion, and increase connectivity between communities. He said there has been a decline in local road quality, and while Wisconsin municipalities are focused on transportation, construction, and maintenance, they are being asked to do more with less, saying the state aid has failed to keep pace with inflation. He highlighted that general transportation aids are the primary mechanism for Wisconsin cities and villages to offset the cost of road construction maintenance, and the state needs to increase the support for local roads. He requested an increase in GTAs by 5% in each year of the biennium.
The General Manager at Kaukauna Utilities advocated for an investment in the safe drinking water fund program. He explained they are in the midst of an $18 million project to replace their 100-year old water treatment facility and if they don’t get any funding from the state or federal governments, they will have to pursue a 35% rate increase for their customers. He also highlighted the EPA’s mandate to remove lead service laterals out by 2037, saying, “With the current funding we have, that’s not going to happen in Wisconsin.”
The Executive Director of the Fox River Navigational System Authority said the Fox Locks infrastructure is between 150 and 170 years old. They have a budget request of $2 million to reconstruct the guard lock. He said they have $5 million-$6 million of immediate needs between the lock and shoreline improvements, plus levee work.
League Note: A summary of the JFC Public Hearing in West Allis on Friday, April 4 will be included in the Legislative Bulletin on Monday, April 14.
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