Earlier today, the Department of Revenue certified that the Consumer Price Index for all urban consumers (CPI-U) at 1.4 percent for the 12 months ending September 30, 2020. Note: this percentage was rounded to the nearest 0.10 percent.
Expenditure Restraint Program (ERP)
Per state law, DOR uses this 1.4 percent CPI-U (inflation factor) in ERP to determine the allowable general fund budget percentage increase for qualifying municipalities from 2020 to 2021 (Wis. Stat. sec. 79.05(1)(am)).
To qualify for a 2022 ERP Payment:
- Your 2020 municipal TID Out property tax rate must exceed five mills.
- Your net general fund budget increase from 2020 to 2021 must be less than the sum of the 1.4 percent CPI-U increase, plus 60 percent of your net new construction percentage during 2019 (up to a maximum 2 percent).
Note: By November 1, 2020, DOR will send ERP budget limit letters providing allowable budget percent increases to municipalities with a 2019 mill rate that exceed five mills.