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October 15, 2007
Increase Shared Revenue in State Budget
Dear Friends –
Today the State Legislature will consider a revised State Budget proposal – a proposal that no longer increases State Shared Revenue for local communities.
Shared Revenue is important because Wisconsin's tax system is designed to collect sales and income taxes at the State level and to send them back to local governments in order to equalize the property tax costs of local government. Therefore, growth in State Aid to local governments is essential to property tax relief and to maintain local governments' ability to deliver key services and invest in priorities like public safety.
The original budget proposal contained an increase of $15 million for local communities, of which Milwaukee was to receive $3.6 million. I planned to use these funds to put more put more police on the streets to keep our neighborhoods safe, maintain our library hours and provide property tax relief for Milwaukee homeowners.
In the new proposal, that increase is gone. The budget to be considered today continues the State's twelve-year trend of neglecting municipal service costs and local property tax relief. Here are some key facts about Shared Revenue and the State Budget:
Between reduced State Aid and frozen Shared Revenue, Milwaukee will lose more than $7.3 million in the budget proposal being considered today.
State Shared Revenue for local communities has been frozen since 1995. During that time, inflation-adjusted State Shared Revenue and other State Aid payments to Milwaukee have declined $70 million.
As State Shared Revenue has declined by $60 million since 1995, the State's support to other efforts during that same time has grown collectively by more than $4.3 billion.
These are enormous flaws, and now is the time to correct them. Decreased services and higher taxes are in no one's interest. By freezing Shared Revenue yet again in the State Budget, both are more likely.
I have sent a letter to the Milwaukee members of the State Senate and State Assembly, urging them to approve a State Budget that increases State Shared Revenue for local communities across Wisconsin, and I encourage you to do the same.
Contact your State Legislature, and tell them it is time for the State Budget to invest in local communities!
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