This bill creates an aidable expenditures payment for a municipality. The bill
also creates a "growth-sharing region" payment for a municipality. Beginning in
2002, a municipality receives an aidable expenditures payment that is equal to the
product of the municipality's aidable expenditures and the municipality's tax base
weight. Aidable expenditures include a municipality's expenditures for general
government operations; law enforcement, fire protection, ambulance services, and
other public safety services; and health and human services. Aidable expenditures
do not include a municipality's expenditures for highway maintenance,
administration, or construction; road-related facilities or other transportation; solid
waste collection and disposal or other sanitation; culture; education; parks and
recreation; conservation; or development.
Annually, the department of revenue (DOR) determines the amount of each
municipality's aidable expenditures. The amount of a municipality's aidable
expenditures in a year is the lesser of: 1) the amount of the municipality's aidable
expenditures in the year that was two years before the municipality receives an
aidable expenditures payment or 2) the average of the municipality's aidable
expenditures in 1998, 1999, and 2000, adjusted for inflation and for the property
value in the municipality.
Under the bill, a municipality in a growth-sharing region may also receive a
growth-sharing region payment. DOR must define "growth-sharing region" by rule
and in such a way so that the state consists of at least seven but not more than 25
growth-sharing regions. A municipality will receive a growth-sharing region
payment if the municipality limits the annual increase in its municipal budget to the
allowable increase, based on the inflation rate and the property value in the
municipality, to qualify for the expenditure restraint program under current law and
if the municipality enters into an area cooperation compact (compact).
Beginning in 2002 and ending in 2005, to receive a payment, a municipality
must enter into a compact with at least two municipalities or counties, or with any
combination of at least two such entities, to perform at least two specified functions.
Beginning in 2006, to receive a payment, a municipality must enter into a compact
with at least four municipalities or counties, or with any combination of at least four
such entities, to provide law enforcement and to perform at least five other specified
functions. The specified functions are housing, emergency services, fire protection,
solid waste collection and disposal, recycling, public health, animal control,
transportation, mass transit, land use planning, boundary agreements, libraries,
parks and recreation, culture, purchasing, and electronic government. A
municipality that is not adjacent to at least two other municipalities may enter into
a compact with any adjacent municipality or with the county in which the
municipality is located.
A compact must provide a plan for any municipalities or counties that enter into
the compact to collaborate to provide the specified functions. The compact must also
provide benchmarks to measure the plan's progress and provide outcome-based
performance measures to evaluate the plan's success. Municipalities and counties
that enter into the compact must structure the compact in a way that results in
significant tax savings to taxpayers within the municipalities and counties.
Annually, the municipality that is to receive a payment must certify to DOR that the
municipality has complied with all of the compact requirements.
The total amount of the growth-sharing region payments allocated to all
growth-sharing regions is an amount equal to the sales and use taxes collected in the
state in a year multiplied by .05, and each growth-sharing region is allocated an
amount that is proportional to the sales and use taxes that are collected in the region.
A municipality that is eligible to receive a growth-sharing region payment receives
an amount, from the amount allocated to the growth-sharing region in which the
municipality is located, in proportion to its population within the growth-sharing
region.
In 2002, a municipality is guaranteed a combined minimum aidable
expenditures and growth-sharing region payment equal to 95% of the amount of the
aidable revenues and per capita payments the municipality received in 2001. In
2003 and subsequent years, a municipality is guaranteed a combined minimum
aidable expenditures and growth-sharing region payment equal to 95% of the
combined amounts of the aidable expenditures and the growth-sharing region
payments the municipality received in the previous year, if the municipality received
growth-sharing region payments in both the current year and the previous year.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB229, s. 1
1Section
1. 20.835 (1) (d) of the statutes is amended to read:
AB229,3,52
20.835
(1) (d)
Shared County shared revenue account. A sum sufficient to meet
3the requirements of the
county shared revenue account established under s. 79.01
4(2) to provide for the distributions from the shared revenue account to counties
,
5towns, villages and cities under ss. 79.03, 79.04
, and 79.06.
AB229, s. 2
6Section
2. 20.835 (1) (db) of the statutes is created to read:
AB229,3,97
20.835
(1) (db)
Municipal services aid account. A sum sufficient to make the
8payments to municipalities under ss. 79.04 and 79.065 (2) and to make the payments
9to municipalities under s. 79.065 (5) that are not paid from s. 20.835 (1) (dd).
AB229, s. 3
10Section
3. 20.835 (1) (dd) of the statutes is created to read:
AB229,4,4
120.835
(1) (dd)
Municipal growth sharing account. A sum sufficient in the
2amount determined under s. 79.01 (5) to make the payments to municipalities under
3s. 79.065 (3) and to make the payments to municipalities under s. 79.065 (5) that are
4not paid from s. 20.835 (1) (db).
AB229, s. 4
5Section
4. 25.50 (3) (b) of the statutes is amended to read:
AB229,4,126
25.50
(3) (b) On the dates specified and to the extent to which they are
7available, subject to s. 16.53 (10), funds payable to local governments under ss. 79.03,
879.04, 79.05, 79.058, 79.06,
79.065, 79.08
, and 79.10 shall be considered local funds
9and, pursuant to the instructions of local officials, may be paid into the separate
10accounts of all local governments established in the local government
11pooled-investment fund and, pursuant to the instructions of local officials, to the
12extent to which they are available, be disbursed or invested.
AB229, s. 5
13Section
5. 33.32 (3) (b) of the statutes is amended to read:
AB229,4,1914
33.32
(3) (b) If a county or municipality fails to pay a special assessment levied
15by a district, the clerk of the district may certify this fact to the department of
16administration
, and shall state the amount due. The department, at the time of
17making the next scheduled distribution under s. 79.03
or 79.065, shall deduct the
18amount claimed from the payment due the county or municipality
, and shall forward
19it to the district.
AB229, s. 6
20Section
6. 66.1001 (3) (rm) of the statutes is created to read:
AB229,4,2121
66.1001
(3) (rm) Area cooperation compacts under s. 79.065 (4).
AB229, s. 7
22Section
7. 79.005 (1) of the statutes is amended to read:
AB229,5,323
79.005
(1) "Municipality" means any town, village
, or city in this state. If a
24municipality is located in more than one county, payments under this subchapter
25shall be computed using data for the municipality as a whole.
If a municipality is
1located in more than one growth-sharing region, as defined in s. 79.065 (1) (d),
2payments under s. 79.065 (3) shall be computed using data for the portion of the
3municipality that is located in each growth-sharing region.
AB229, s. 8
4Section
8. 79.005 (2) of the statutes is amended to read:
AB229,5,105
79.005
(2) "Population" means the number of persons residing in each
6municipality and county of the state as last determined by the department of
7administration under s. 16.96
, except that under s. 79.065 (3) (b), if a municipality
8is located in more than one growth-sharing region, "population" means the number
9of persons residing in the portion of the municipality located in each growth-sharing
10region.
AB229, s. 9
11Section
9. 79.01 (1) of the statutes is amended to read:
AB229,5,1712
79.01
(1) There is established an account in the general fund entitled the
13"Expenditure Restraint Program
Account". Account." There shall be appropriated
14to that account $25,000,000 in 1991, in 1992
, and in 1993
,; $42,000,000 in 1994
,; 15$48,000,000 in each year beginning in 1995 and ending in 1999
and; $57,000,000
16beginning in the year 2000
and ending in 2001; and $63,000,000 in 2002 and in each
17year thereafter.
AB229, s. 10
18Section
10. 79.01 (2) of the statutes is amended to read:
AB229,5,2219
79.01
(2) There is established an account in the general fund entitled the
20"
Municipal and County Shared Revenue Account
,"
, referred to in this chapter as the
21"shared revenue account
."
. There shall be appropriated to the shared revenue
22account the sums specified in ss. 79.03
and, 79.04
, and 79.06.
AB229, s. 11
23Section
11. 79.01 (5) of the statutes is created to read:
AB229,6,324
79.01
(5) There is established an account in the general fund entitled the
25"Municipal Growth-Sharing Account." There shall be appropriated to that account
1an amount, determined by the department of revenue, that is equal to the sales and
2use tax revenue collected under subch. III of ch. 77 in the fiscal year prior to the fiscal
3year that any municipality receives the statement under s. 79.015 multiplied by .05.
AB229, s. 12
4Section
12. 79.01 (6) of the statutes is created to read:
AB229,6,95
79.01
(6) There is established an account in the general fund entitled the
6"Municipal Services Aid Account." There shall be appropriated to that account the
7amounts necessary to make the payments to municipalities under ss. 79.04 (1) and
8(4) (a) and 79.065 (2) and to make the payments to municipalities under s. 79.065 (5)
9that are not paid from s. 20.835 (1) (dd).
AB229, s. 13
10Section
13. 79.015 of the statutes is amended to read:
AB229,6,14
1179.015 Statement of estimated payments. The department of revenue, on
12or before September 15 of each year, shall provide to each municipality and county
13a statement of estimated payments to be made in the next calendar year to the
14municipality or county under ss. 79.03, 79.04, 79.05, 79.058
and, 79.06
, and 79.065.
AB229, s. 14
15Section
14. 79.02 (2) (b) of the statutes is amended to read:
AB229,6,1816
79.02
(2) (b) Subject to s. 59.605 (4), payments in July shall equal 15% of the
17municipality's or county's estimated payments under ss. 79.03, 79.04, 79.058
and, 1879.06
, and 79.065 and 100% of the municipality's estimated payments under s. 79.05.
AB229, s. 15
19Section
15. 79.02 (3) of the statutes is amended to read:
AB229,6,2320
79.02
(3) Subject to s. 59.605 (4), payments to each municipality and county in
21November shall equal that municipality's or county's entitlement to shared revenues
22under ss. 79.03, 79.04, 79.05, 79.058
and, 79.06
, and 79.065 for the current year,
23minus the amount distributed to the municipality or county in July.
AB229, s. 16
24Section
16. 79.03 (1) of the statutes is amended to read:
AB229,7,3
179.03
(1) Each
municipality and county is entitled to shared revenue
,
2consisting of an in the amount determined
on the basis of population under sub. (2),
3plus an amount determined under sub. (3).
AB229, s. 17
4Section
17. 79.03 (2) of the statutes is repealed.
AB229, s. 18
5Section
18. 79.03 (3) (a) of the statutes is amended to read:
AB229,7,106
79.03
(3) (a) The amount in the shared revenue account for
municipalities and
7the amount in the shared revenue account for counties, less the payments under
sub.
8(2) and s. 79.04, shall be allocated to each
municipality and county respectively in
9proportion to its entitlement. In this paragraph, "entitlement" means the product
10of aidable revenues and tax base weight.
AB229, s. 19
11Section
19. 79.03 (3) (b) 1. of the statutes is amended to read:
AB229,7,1212
79.03
(3) (b) 1. "Aidable revenues" means
:
AB229,7,13
13a. For a municipality, the average local purpose revenues.
AB229,7,14
14b. For a county, 85% of the average local purpose revenue.
AB229, s. 20
15Section
20. 79.03 (3) (b) 3. of the statutes is amended to read:
AB229,8,716
79.03
(3) (b) 3. "Full valuation" means the full value of property that is exempt
17under s. 70.11 (39) as determined under s. 79.095 (3) plus the full value of all taxable
18property for the preceding year as equalized for state tax purposes, except that
for
19municipalities the value of real estate assessed under s. 70.995 is excluded. Value 20value increments under s. 66.1105 plus the full value of property that is exempt
21under s. 70.11 (39) that would otherwise be part of a value increment are
included
22for municipalities but excluded
for counties. Environmental remediation value
23increments under s. 66.1106 are included for
municipalities and counties that create
24the environmental remediation tax incremental district and are excluded for
units
25of government counties that do not create the district.
If property that had been
1assessed under s. 70.995 and that has a value exceeding 10% of a municipality's value
2is assessed under s. 70.10, 30% of that property's full value is included in "full
3valuation" for purposes of the shared revenue payments in the year after the
4assessment under s. 70.10, 65% of that property's full value is included in "full
5valuation" for purposes of the shared revenue payments in the year 2 years after the
6assessment under s. 70.10 and 100% of that property's full value is included in "full
7valuation" for purposes of subsequent shared revenue payments.
AB229, s. 21
8Section
21. 79.03 (3) (b) 4. (intro.) of the statutes is amended to read:
AB229,8,159
79.03
(3) (b) 4. (intro.) "Local purpose revenues" means the sum of payments
10under s. 79.095, local general purpose taxes, regulation revenues, revenues for
11services to private parties by a county's
or municipality's general operations or
12enterprises, revenue for sanitation services to private parties, special assessment
13revenues,
and tax base equalization aids
and, for municipalities only, a proxy for
14private sewer service costs, a proxy for private solid waste and recycling service costs
15and a proxy for retail charges for fire protection purposes. In this subdivision:
AB229, s. 22
16Section
22. 79.03 (3) (b) 4. a. of the statutes is amended to read:
AB229,9,217
79.03
(3) (b) 4. a. "Local general purpose taxes" means
the portion of tax
18increments collected for payment to a municipality under s. 66.1105 which is
19attributable to that municipality's own levy, the portion of environmental
20remediation tax increments collected for payment to a
municipality or county under
21s. 66.1106 that is attributable to that
municipality's or county's own levy, general
22property taxes, excluding taxes for a county children with disabilities education
23board, collected to finance the general purpose government unit, property taxes
24collected for sewage and sanitary districts, mobile home fees, the proceeds of county
1sales and use taxes
, and
municipal and county vehicle registration fees under s.
2341.35 (1).
AB229, s. 23
3Section
23. 79.03 (3) (b) 4. b. of the statutes is repealed.
AB229, s. 24
4Section
24. 79.03 (3) (b) 4. bg. of the statutes is repealed.
AB229, s. 25
5Section
25. 79.03 (3) (b) 4. bm. of the statutes is repealed.
AB229, s. 26
6Section
26. 79.03 (3) (b) 4. d. of the statutes is amended to read:
AB229,9,107
79.03
(3) (b) 4. d. "Revenue for sanitation services to private parties" means
8revenues collected from private parties by a county's
or municipality's general
9operations or enterprises and by sewerage, sanitation
, or inland lake rehabilitation
10districts as refuse collection fees, sewerage service fees
, and landfill fees.
AB229, s. 27
11Section
27. 79.03 (3) (b) 4. e. of the statutes is amended to read:
AB229,9,2112
79.03
(3) (b) 4. e. "Revenues for services to private parties by a county's
or
13municipality's general operations or enterprises" means revenues collected from
14private parties for the following services: general government services consisting of
15license publication fees, sale of publications, clerk's fees
, and treasurer's fees; public
16safety services, consisting of police or sheriff's department fees, fire department fees
, 17and ambulance fees; inspection services, consisting of building, electrical, heat,
18plumbing, elevator
, and weights and measures; sidewalk replacement or
19construction fees, storm sewer construction fees, street lighting fees; parking ramps,
20meters and lot fees; library fines or fees; and museum and zoo users or admission
21fees.
AB229, s. 28
22Section
28. 79.03 (3) (b) 4. f. of the statutes is amended to read:
AB229,9,2423
79.03
(3) (b) 4. f. "Special assessment revenues" means charges assessed
24against benefited properties for capital improvements by a
municipality or county
1placed on the current tax roll for collection or collected during the year in advance
2of being placed on the tax roll.
AB229, s. 29
3Section
29. 79.03 (3) (b) 4. h. of the statutes is repealed.
AB229, s. 30
4Section
30. 79.03 (3) (b) 5. of the statutes is amended to read:
AB229,10,75
79.03
(3) (b) 5. "Standardized valuation" means the product of the standardized
6valuation per person times the population of a
municipality or a county in the
7preceding year.
AB229, s. 31
8Section
31. 79.03 (3) (b) 6. of the statutes is amended to read:
AB229,10,129
79.03
(3) (b) 6. "Standardized valuation per person" is that number that when
10used in the computation under par. (a) most nearly approximates the sum of
11entitlements for all
municipalities or for all counties respectively to the funds
12distributable under par. (a).
AB229, s. 32
13Section
32. 79.03 (4) of the statutes is amended to read:
AB229,11,414
79.03
(4) In 1991, the total amount to be distributed under ss. 79.03, 79.04
, and
1579.06 from s. 20.835 (1) (d) is $869,000,000. In 1992, the total amount to be
16distributed under ss. 79.03, 79.04
, and 79.06 from s. 20.835 (1) (d) is $885,961,300.
17In 1993, the total amount to be distributed under ss. 79.03, 79.04
, and 79.06 from s.
1820.835 (1) (d) is $903,680,500. In 1994, the total amounts to be distributed under this
19section and ss. 79.04 and 79.06 from s. 20.835 (1) (d) are $746,547,500 to
20municipalities and $168,981,800 to counties.
In
Beginning in 1995 and
subsequent
21years ending in 2001, the total amounts to be distributed under ss. 79.03, 79.04
, and
2279.06 from s. 20.835 (1) (d) are $761,478,000 to municipalities and $168,981,800 to
23counties.
In 2002, the total amount to be distributed to municipalities under ss.
2479.04 and 79.065 (2) from s. 20.835 (1) (db) is $755,478,000, less the amounts
25distributed under s. 79.065 (3) from s. 20.835 (1) (dd). In 2003 and subsequent years,
1the total amount to be distributed to municipalities under ss. 79.04 and 79.065 (2)
2from s. 20.835 (1) (db) is the amount distributed under ss. 79.04 and 79.065 (2) to
3municipalities in 2002. In 2002 and subsequent years, the total amount to be
4distributed under ss. 79.03, 79.04, and 79.06 from s. 20.835 (1) (d) is $168,981,800.
AB229, s. 33
5Section
33. 79.06 (1) of the statutes is amended to read:
AB229,11,146
79.06
(1) Minimum payments. (b) If the payments to any
municipality or county
7under s. 79.03
, excluding payments under s. 79.03 (3c), in 1986 or any year thereafter
8are less than 95% of the combined payments to the
municipality or county under this
9section and s. 79.03
, excluding payments under s. 79.03 (3c), for the previous year,
10the
municipality or county has an aids deficiency. The amount of the aids deficiency
11is the amount by which 95% of the combined payments to the
municipality or county
12under this section and s. 79.03
, excluding payments under s. 79.03 (3c), in the
13previous year exceeds the payments to the
municipality or county under s. 79.03
, 14excluding payments under s. 79.03 (3c), in the current year.
AB229,11,1715
(c) A
municipality or county that has an aids deficiency shall receive a payment
16from the amounts withheld under sub. (2) equal to its proportion of all the aids
17deficiencies of
municipalities or counties respectively for that year.
AB229, s. 34
18Section
34. 79.06 (2) of the statutes is amended to read:
AB229,11,2319
79.06
(2) Maximum payments. (b) If the payments to a
municipality or county,
20except any county in which there are no cities or villages, in any year exceed its
21combined payments under this section and s. 79.03
, excluding payments under s.
2279.03 (3c), in the previous year by more than the maximum allowable increase, the
23excess shall be withheld to fund minimum payments in that year under sub. (1) (c).
AB229,12,324
(c) In this subsection, "maximum allowable increase" in any year means a
25percentage such that the sum for all
municipalities or counties
respectively in that
1year of the excess of payments under ss. 79.02 and 79.03
, excluding payments under
2s. 79.03 (3c), over the payments as limited by the maximum allowable increase is
3equal to the sum of the aids deficiencies under sub. (1) in that year.
AB229, s. 35
4Section
35. 79.065 of the statutes is created to read:
AB229,12,5
579.065 Municipal growth sharing. (1)
Definitions. In this section:
AB229,12,126
(a) "Aidable expenditures" means a municipality's expenditures for general
7government operations; law enforcement, fire protection, ambulance services, and
8other public safety services; and health and human services. "Aidable expenditures"
9does not include a municipality's expenditures for highway maintenance,
10administration, or construction; road-related facilities or other transportation; solid
11waste collection and disposal or other sanitation; culture; education; parks and
12recreation; conservation; or development.
AB229,12,1413
(b) "Entitlement" means the product of aidable expenditures and tax base
14weight.
AB229,12,2115
(c) "Full valuation" means the full value of all taxable property of a
16municipality for the preceding year as equalized for state tax purposes, including the
17value increments under s. 66.1105, the environmental remediation value increments
18under s. 66.1106 for municipalities that create the environmental remediation tax
19incremental district, and the value of real estate assessed under s. 70.995, but
20excluding the full value of property that is exempt under s. 70.11 (39) as determined
21under s. 79.095 (3).
AB229,12,2422
(d)
"Growth-sharing region" means "growth-sharing region" as defined by
23rule, no later than September 1, 2001, by the department of revenue so that this state
24is divided into at least 7 but not more than 25 growth-sharing regions.
AB229,12,2525
(e) "Sales tax" means the tax imposed under ss. 77.52 and 77.53.
AB229,13,2
1(f) "Standardized valuation" means the product of the standardized valuation
2per person times the population of a municipality in the preceding year.
AB229,13,53
(g) "Standardized valuation per person" is that number that when used in the
4computation under sub. (2) most nearly approximates the sum of entitlements for all
5municipalities to the funds distributable under sub. (2).