Gwyn Guenther, President, The Wheeler Report

August 25, 2025

Budget Corrections

The Joint Finance Committee met on Thursday, August 21st and introduced budget correction bills (AB 387 / SB 390). The legislation would modify the budget (2025 Act 15) as follows:

• Increase funding by $2,600,000 GPR in 2025-26 in the Joint Finance Committee’s GPR supplemental appropriation to fund the public protective services hearing protection program created under 2025 Act 14.

• Clarify the effective date for the increase in the heavy truck fee increase to be October 1, 2025. 

The following is a summary from the Legislative Fiscal Bureau: 

• Act 15 created a GPR appropriation under the Department of Transportation to fund the public protective services hearing protection program. Funding for the program was to be included under the Joint Finance Committee's GPR supplemental appropriation, for eventual transfer to the Department's GPR appropriation. However, that funding inadvertently was omitted from the appropriation schedule of Act 15 and the bill would provide the $2,600,000 GPR to the Committee's appropriation to fund the program. This office has treated these moneys as if they had been appropriated in preparing the fund condition statement for Act 15, so this corrective legislation would not affect the closing balance for the 2025-27 biennium.

• Act 15 included several transportation-related fee increases that are first effective on October 1, 2025. While one Act 15 reference related to the heavy truck registration fee increases indicates the fee increases are to be first effective on October 1, 2025, a separate statutory reference indicates the fee increases are first effective on October 1, 2026. The bill would correct this reference to be October 1, 2025. The Act 15 fund condition for the transportation fund reflects the October 1, 2025, effective date. If the effective date in statute is not changed, the fees would be first effective on October 1, 2026.

Fall Legislative Action

The Senate and Assembly are still working slowly, but standing legislative committees are starting to notice more activity. It is expected the Assembly will have one floor session day in September and likely one floor session day in October. The Senate is not likely to meet in September but may have a floor session in October.  

Tax Holiday Legislation Proposed

Sen. Brad Pfaff (D-Onalaska) and Rep. Jenna Jacobson (D-Oregon) are circulating legislation to create a back-to-school sales tax holiday. According to the Legislative Reference Bureau analysis:

• This bill creates an annual back-to-school sales tax holiday for the three-day period beginning on the first Friday in August and ending on the following Sunday. During that period, clothing having a sales price of no more than $150 [per item] and school supplies having a sales price of no more than $100 [per item] are exempt from the sales and use tax. The bill also requires the Department of Revenue to annually estimate the amount that sales and use tax receipts by counties and municipalities that impose a sales and use tax decrease due to the back-to-school sales tax holiday, and DOR must annually distribute those amounts to the counties and municipalities.

LRB-4325 Memo Tax Holiday An annual back-to-school sales tax holiday and making an appropriation. Deadline: Thursday, August 28, 2025 5:00pm

Important Updates from the League

⭐ REGISTER NOW for the League's Fall Conference: Time is running out to register for the League’s 2025 Fall Conference. Will you be joining us for three days of education, networking, inspiration, and fun?

Don't miss your opportunity to network with municipal officials from across the state in beautiful Milwaukee! Registration closes on September 4th and the hotel room block closes on August 26th. We hope to see you in Milwaukee from September 17th to September 19th for this exciting, engaging event! 

⭐ Innovation Fund Set to Launch in September: The Wisconsin Department of Revenue (DOR) has officially put themselves on the clock with an expected launch date for the Innovation Fund in September! Are you ready to apply? With substantial changes to program eligibility in the 2025-2027 State Budget (for more information, see the July 21st edition of the Legislative Bulletin), municipalities that previously dismissed applying due to stringent cost savings requirements should reexamine this exciting opportunity. 

Stay tuned to DOR’s website and upcoming Legislative Bulletins for more information on the launch of this $300 million program. The League, in coordination with our partners at DOR, will host a session on the Innovation Fund at the Fall Conference on Thursday, September 18th at 4:00pm. While we hope you will join us there, if you can’t make it, stay tuned for additional educational opportunities on the Innovation Fund in the near future.

As a reminder, while the application and supporting documents have not yet been published by DOR, all allowable services or duties that were consolidated or transferred will be eligible for funding if those agreements were signed on or after November 13, 2024. 

⭐ WisDOT Enacts Local Bridge Inspection Emergency Rule: The Wisconsin Department of Transportation (WisDOT) recently enacted Emergency Rule 2509 which amends the standards for local bridge inspections and the qualifications for funding in the Local Bridge Program.

These administrative code revisions are being made consistent with new federal rules on National Bridge Inspection Standards and to maintain Wisconsin’s allocation of about $70 million in federal funds for the 2025 Local Bridge Program application cycle. According to WisDOT, this Emergency Rule loosens the requirements for bridges to qualify for funding as federal policy now encourages more routine maintenance and upkeep projects instead of letting bridges fall into disrepair to gain eligibility for this federal pass-through funding.

Municipal officials interested in learning more about Emergency Rule 2509 may visit the Legislature’s website. Additional information on the Local Bridge Program is available online. WisDOT is currently accepting applications for this program that are due by October 31st. 

⭐ Final Reminder on Commercial Building Code Revisions Webinar: As noted in the August 11th Wheeler Bulletin and August 18th Legislative Bulletin, the Wisconsin Department of Safety and Professional Services (DSPS) will be overhauling the state’s Commercial Building Code, which also impacts multi-family residential buildings, on September 1st. To aid projects currently underway, DSPS will accept plans submitted under the current (2015) code through the month of September. However, by October 1st, all commercial building plans submitted must meet the updated code standards. 

Municipal officials interested in learning more about these revisions may attend a webinar this Thursday, August 28th beginning at 9am on Microsoft Teams. The recording of a similar webinar held earlier this month is also available for viewing on DSPS’s YouTube Channel. 

⭐ NLC Webinar on Federal Grant Opportunities: Tomorrow, August 26th, the National League of Cities (NLC) is hosting a webinar titled Funding the Future: Accessing Grants for Housing, Infrastructure and Public Safety. The webinar, which will take place from 12:00pm to 1:00pm Central Time, will highlight federal grant opportunities for economic development and basic municipal services. If you’re interested in joining but have a scheduling conflict, registrants will receive a recording of the webinar after the event. Learn more on NLC’s website. 

Email questions or comments to:

Toni Herkert, Government Affairs Director, therkert@lwm-info.org

Evan Miller, Government Affairs Specialist, emiller@lwm-info.org