Capitol Buzz
June 14, 2023
Shared Revenue Passes Both Houses‼️

The League is proud to report that after almost a year of work with our coalition partners, the legislature, and the Governor the shared revenue bill has cleared both houses today! The Senate adopted an amendment that removed the referendum requirement for the city and county of Milwaukee. The city can now vote by two-thirds of the Common Council to implement a 2% local sales tax and the county can vote by two-thirds of the County Board to increase their current sales tax by 0.4%. The amendment also increased the minimum inflationary supplemental payment to 20%. The Senate voted on final passage and sent the bill back to the Assembly to act on the amended bill. The Assembly had to pass a technical amendment and then voted to send the bill back to the Senate for final approval. Yes, it was like a tennis match, but AB 245 as amended is now on the way to the Governor for his action.

Please consider thanking the legislators who voted in favor of the package. The League would like to especially thank Speaker Vos and Senate Majority Leader LeMahieu and the bill authors Senator Felzkowski and Representative Kurtz. We greatly appreciate all the time these legislators and their staff have invested in this critical initiative!

While the bill contains policy reform items that represent the compromise nature of divided government, we are encouraged by the process utilized and the historic investment in local government in Wisconsin.

Please see the League bill analysis for more details on the final bill.

Transportation Budget Update

Last night, the Joint Committee on Finance approved a motion that increases transportation resources over the biennium by about a billion dollars. By investing increased federal funding from the Infrastructure Investment and Jobs Act, generating new, ongoing revenue to supplement the transportation fund, and more than $550 million in one-time general purpose revenue. The following are positive transportation wins for local government:
 
  •  General Transportation Aids - 2% increase each calendar year – $31.4 million SEG.
  • Connecting Highway Aid - increases of $2.48,$4.97 million to fund a 25% increase annually for municipalities
  •  Local Road Improvement Program (LRIP): one-time SEG funding of $100 million for LRIP supplemental. Increase LRIP formula and discretionary components $4.0 million SEG, representing a 4% yearly increase.
  •  Local Road Improvement Program – Agricultural Roads (ARIP): $150 million SEG in FY 24.
  • Transit was moved out of transportation to the general fund but did receive a 2% increase
  • State Highway Rehab Program - increases each of the two years of the biennium of $5.4 million and $25.9 million plus additional FED increases
  • State Highway Management and Operations - increase to the base of $1.6 million annually ongoing.
  • State Highway Routine Maintenance - increases of $1.7 million and $3.9 million, the $3.9 is ongoing
  • EV Sales Tax Transfer to transportation fund which would increase revenue by $1.1 million and $2.1 million
  • Local Bridge Improvement Program - funding of $10 million and $8.75 million which is consistent with the last two budgets 
  • Harbor Assistance Finding Increase - 2021-2023 biennium provided $16.2 million, mostly bonding; this budget provides $20 million all SEG
  • Passenger Rail Operations Assistance - increase to base appropriation of $453,000 and $518,000
  • Seniors and Individuals with Disabilities Specialized Assistance -Increase of $111,500 SEG for an 11.6% increase in funding in the first year of the biennium.
  •  Paratransit Aids - 4% increase each year - $386,700 SEG

Workforce Housing Package Also Off to the Governor

In addition to the historic shared revenue package, both houses of the Legislature today approved five bills intended to spur the production of workforce housing. The League worked with State Representative Rob Brooks, Senators Romaine Quinn, Duey Stroebel and Dan Feyen, along with the housing industry, to develop the package, which includes:
  • AB 264 which provides zero-interest loans for residential development infrastructure (roads, utilities, etc.)
  • AB 265 provides zero-interest loans for upper-floor main street housing rehabilitation.
  • AB 266 is the Truth-in-Zoning bill which requires municipalities to permit housing allowed under existing residential zoning regulations and limits third-party lawsuits against development.
  • AB 267 provides low-interest loans for workforce housing rehabilitation.
  • AB 268 provides zero-percent loans for conversion of non-residential housing to workforce housing.
The League’s Government Affairs Team is here to keep you updated on legislative proposals introduced during the session. If you have questions please contact: Government Affairs Director, Toni Herkert at therkert@lwm-info.org or Government Affairs Specialist, Katie Scott at kscott@lwm-info.org.