Everything you need to know about the Latest Federal Stimulus

March 15, 2021 | Number 11

What the American Rescue Plan Act Means for Wisconsin Municipalities

Last Thursday, President Biden signed into law the latest federal COVID relief package, known as the American Rescue Plan Act, which contains an historic investment in local government. Below are the highlights of the municipal aid included in the Act:

The local government portion of funding is $130.2 billion, equally divided between municipalities and counties.

The $65.1 billion to be allocated directly to cities, towns and villages under the Act will be distributed differently based on the size of the community.

Metro Cities: $45.5 billion of the $65.1 billion will be allocated to municipalities with more than 50,000 residents. Funds will be made available directly by the U.S. Treasury. Grant amounts will be calculated by using the CDBG formula that measures population + poverty + housing instability.

Small Municipalities: The remaining $19.6 billion will be distributed to municipalities with less than 50,000 residents through the states according to a per capita formula. States that fail to sub-allocate funds that small municipalities are entitled to under the American Rescue Plan Act will be penalized by the U.S. Treasury department, which is authorized to claw-back payments made to states under the American Rescue Plan by an amount equal to the funding not allocated to municipalities as required by the law. These safeguards and penalties are designed to discourage state interference or additional state mandates on the use of these funds.

Small Municipalities Cap on Grant Amount. The American Rescue Plan Act includes a provision stating no municipality with less than 50,000 residents can receive a grant that is larger than an amount equal to 75% of its pre-pandemic budget, regardless of whether the estimates indicate an amount greater than that figure. Note: This cap is not accounted for in the aid estimates that Congress has provided because data on small municipality budgets is not systematically collected by any federal entity. It is anticipated that the Treasury Department will provide a way for small municipalities to certify what that cap amounts to for the municipality.

Timing of payments. Payments to local governments will be made in two tranches - the first to be made within 60 days of enactment and the second payment one year later. Funds must be spent by end of calendar year 2024.

Eligible use of the funds include:

Revenue replacement for the provision of government services to the extent the reduction in revenue was due to the COVID-19 public health emergency relative to revenues collected in the most recent fiscal year prior to the emergency.
Premium pay for essential workers.
To to respond to the public health emergency caused by the COVID–19 pandemic or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.
Investments in water, sewer and broadband infrastructure.
Funds can be transferred between jurisdictions or to non-profit partners.

Restrictions on eligible uses: Funds cannot be used to directly or indirectly offset tax reductions or delay a new tax or tax increase. Funds cannot be deposited into any pension fund.

Committee Vote Planned on Continuation of Personal Property Aid after TID Closes

The Assembly Ways and Means committee has scheduled a vote on AB 56, a League initiated bill making it clear that personal property aid payments made to a TIF district continue after the district closes but transfer to the municipality and other taxing jurisdictions. The committee vote is scheduled for March 18th at 10:00 a.m. Committee members appear to be supportive of an amendment the League supports that Rep. Dave Steffen (R-Howard) plans to offer making the change to personal property aid payments retroactive to when the aid program was created four years ago.

Joint Finance Committee Announces Public Hearings on the State Budget

The Legislature's budget writing committee announced last week it will conduct public hearings on the 2021-23 state budget on the following dates:

Friday, April 9, 2021 UW-Whitewater, Whitewater, WI
Wednesday, April 21, 2021 The Hodag Dome, Rhinelander, WI
Thursday, April 22, 2021 UW-Stout, Menomonie, WI
Wednesday, April 28, 2021 Virtual

Each hearing will begin at 10 am and conclude at 5 pm. The format will be similar to past hearings. Management at each of the venues will monitor capacity. Those wishing to testify at the virtual hearing will be required to register in advance, details to come on the registration process. A portal is available for individuals to provide written comments: www.legis.wisconsin.gov/topics/budgetcomments as well as an email address [email protected].

League staff will soon reach out to local officials located in Joint Finance Committee member districts and communities hosting state budget hearings to provide talking points on shared revenue, transportation aids, and other state budget issues affecting municipalities.

RECENTLY INTRODUCED LEGISLATION

SB 178, Elections Administrations, Recall Petitions, and Recount Procedures. This bill makes various changes to the state's election laws, including the following:

Temporary orders related to the conduct of elections
Review of the conduct of recounts
Delivery of recount petitions to candidates
Information concerning domestic abuse and sexual assault victim service providers
Legible printing of signers' names on a recall petition
Notice of referendums on the ballot at spring and partisan primaries
Delivery to the commission of certified statements regarding an election
Appointment of election inspectors for canvassing absentee ballots
Ballot space for write-in candidates for city office
Names of independent candidates for state office listed on the partisan primary ballot
Maintaining poll lists after an election
Notice of ballot form and contents when an electronic voting system is used for an election
Paper copies of registration lists used in an election
References to copying machines
Counting of write-in votes
Commission rules relating to forms of election notices
Establishing ward lines

Senator Bernier (R-Chippewa Falls) and Representative Magnafici (R-Dresser).

The League is reviewing this legislation and has not taken a position to date.

SB 179, Voter Registration. This bill requires a registered elector who has changed his or her name or address to complete a new voter registration. The bill also allows an individual to also use an unexpired driving receipt or an unexpired identification card receipt as proof of residence for voter registration purposes if the receipt has the individual's current and complete name and address. Current law allows these document to be used only for voter identification not proof of residency.

In addition, current law also authorizes the use of a paycheck for an elector to establish proof of residence for purposes of voter registration. The bill adds the authority to use a pay stub or pay statement. The bill also specifies that a document provided as proof of residence for purposes of voter registration may be provided in electronic format. Senator Bernier (R-Chippewa Falls) and Representative Magnafici (R-Dresser). The League is neutral on this bill.

SB 180, Absentee Voting and Voting Procedures. This bill makes the several changes to the election laws regarding absentee voting and voting procedures including:

the bill provides modifications in the process used for retirement homes that are not a qualified retirement home but are located within a municipality as part of a multiple-use facility consisting of one or more qualified retirement homes or residential care facilities to which special voting deputies are dispatched.
The bill provides that an individual who is required to provide proof of residence to complete his or her voter registration but who does not provide such proof is not allowed to cast a provisional ballot or to otherwise vote.
The bill clarifies the absentee process for former qualified Wisconsin electors who have moved out of state, but have not become a qualified elector in their new state.
The bill prohibits a person from obtaining another person's marked absentee ballot and failing or refusing to deliver it to the proper municipal clerk or polling place. A person who violates this prohibition is guilty of a Class I felony.
Other modifications include curbside voting procedures for eligible electors who, for any reason, are unable to enter the polling place along with other technical modifications.

Senator Bernier (R-Chippewa Falls) and Representative Magnafici (R-Dresser). The League is neutral on this bill.

SB 187, Village Officers Serving as Village Employees. Generally, under current law and under a number of state supreme court decisions, the doctrine of compatibility holds that one person cannot hold two offices if one office is superior to another in some respect and the superior office makes decisions about the other office such that the duties exercised under each might conflict to the public detriment. Also under current law, members of a town, village, or county board or city council are generally ineligible for any office or position that the board or council has the authority to fill. A specific statutory provision authorizes a town board member to receive an hourly wage, not exceeding $15,000 annually, as a town employee. This bill authorizes a member of a village board to receive an hourly wage, not exceeding $15,000 annually, as a village employee. Senator Felzkowski (R-Irma) and Representative Mursau (R-Crivitz). The League supports this bill and has worked with the authors to have it introduced.

SB 189, Eliminating the Personal Property Tax and Making an Appropriation. Under current law, beginning with the property tax assessments as of January 1, 2018, machinery, tools, and patterns, not including those items used in manufacturing, are exempt from the personal property tax. Beginning in 2019, the state pays each taxing jurisdiction an amount equal to the property taxes levied on those items as of January 1, 2017.

Under the bill, beginning with the property tax assessments as of January 1, 2021, no items of personal property will be subject to the property tax. Beginning in 2022, the state will pay each taxing jurisdiction an additional amount equal to the property taxes levied on the items made exempt under the bill for the property tax assessments as of January 1, 2020. Beginning in 2023, each taxing jurisdiction will receive a payment to compensate it for its loss in personal property revenue equal to the payment it received in the previous year. Senator Stroebel (R-Saukville) and Representative Knodle (R-Germantown). Because the bill includes payments designed to hold local governments harmless and there is no sunset on those payments, the League is neutral on this bill.

SB 198, Expanding the Applicability and Modifying the Room Tax. This bill expands the applicability of the room tax, makes a number of substantive and technical changes to the local room tax in the areas of collections, audits, and the exchange of information between local governments and the Department of Revenue, establishes a common tax base between the sales tax and the room tax, and authorizes a municipality to impose a forfeiture on a marketplace provider that does not timely file a required room tax return to the municipality or pay the required tax. Senator Ballweg (R-Markesan) and Representative Kitchens (R-Sturgeon Bay). The League supports this bill.

PUBLIC HEARINGS THIS WEEK

There are no public hearings on municipal bills scheduled this week.

Both the Senate and Assembly have floor sessions this Tuesday, March 16th. The Senate will convene at 12:00 pm and the Assembly will follow at 1:00 pm. The Assembly will also convene at 1:00 pm on Wednesday, march 17th. All floor sessions can be viewed on Wisconsin Eye.

IN THE NEWS

(Paywalls may apply)

Stimulus Solves Most — But Not All — State and Local Budget Problems Read the article.

Wisconsin Bill Would Penalize Cities For 'Defunding' Police Departments Read the article.

Wisconsin regulators to chart 'roadmap' to carbon-free electricity Read the article.

Walters: Governor seeks climate change plans from municipalities Read the article.

More women pursuing careers in law enforcement Read the article. Click here to comment or share this article from the League's Facebook page.

Wisconsin to add over 2 million with health conditions to vaccine list on March 29 Read the article.

DNR: destroy your moss balls, but please don't flush them (Zebra mussels in ornamental aquarium plants.) Read the article. Click here to share this from the League's Facebook page to your own.