2025 - 2026 LEGISLATURE
LRB-6399/1
JK:emw
March 12, 2026 - Introduced by Senators Roys, Dassler-Alfheim, Larson, Ratcliff and Spreitzer, cosponsored by Representatives Hong, Palmeri, Anderson, Bare, Joers, Sinicki, McCarville, Miresse, Sheehan, Roe, Stubbs, Clancy and Madison. Referred to Committee on Transportation and Local Government.
SB1112,1,3
1An Act to amend 20.835 (5) (r), 70.119 (1), 70.119 (2), 70.119 (7) (a) and 70.119 2(7) (c) of the statutes; relating to: state payments for municipal services and
3making an appropriation. Analysis by the Legislative Reference Bureau
Under current law, instead of paying property taxes, the state pays municipalities for municipal services provided to state facilities located in the municipalities. The state negotiates the payment amount with each municipality based on the state’s calculation of the value of state property located in the municipality. If the appropriation for making the payments for municipal services is insufficient for paying the full amount of all the negotiated payments, the state prorates the payments among the municipalities.
Under this bill, the state pays the full amount of all payments to municipalities for municipal services.
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:
SB1112,14Section 1. 20.835 (5) (r) of the statutes is amended to read: SB1112,2,4
120.835 (5) (r) Payments for municipal services. From the local government 2fund, the amounts in the schedule a sum sufficient to make payments for municipal 3services provided by municipalities to state facilities, as determined under s. 70.119 4(7). SB1112,25Section 2. 70.119 (1) of the statutes is amended to read: SB1112,2,15670.119 (1) The state and the University of Wisconsin Hospitals and Clinics 7Authority shall make reasonable payments, in full, at established rates for water, 8sewer and electrical services and all other services directly provided by a 9municipality to state facilities and facilities of the University of Wisconsin 10Hospitals and Clinics Authority described in s. 70.11 (38), including garbage and 11trash disposal and collection, which are financed in whole or in part by special 12charges or fees. Such payments for services provided to state facilities shall be 13made from the appropriations to state agencies for the operation of the facilities. 14Each state agency making such payments shall annually report the payments to 15the department. SB1112,316Section 3. 70.119 (2) of the statutes is amended to read: SB1112,2,191770.119 (2) The department shall make reasonable payments, in full, for 18municipal services pursuant to the procedures specified in subs. (4), (5), (6), and 19(6m), except as provided in under sub. (9). SB1112,420Section 4. 70.119 (7) (a) of the statutes is amended to read: SB1112,3,32170.119 (7) (a) The department shall make payment from the appropriation 22under s. 20.835 (5) (r) for municipal services provided by municipalities to state 23facilities. If the appropriation under s. 20.835 (5) (r) is insufficient to pay the full 24amount under sub. (6) in any one year, the department shall prorate payments
1among the municipalities entitled thereto. The University of Wisconsin Hospitals 2and Clinics Authority shall make payment for municipal services provided by 3municipalities to facilities of the authority described in s. 70.11 (38). SB1112,54Section 5. 70.119 (7) (c) of the statutes is amended to read: SB1112,3,14570.119 (7) (c) The department shall assess to the appropriate program 6revenue and program revenue-service accounts and segregated funds the costs of 7providing payments for municipal services for the administration of programs 8financed from program revenues or segregated revenues, except program revenues 9derived from academic student fees levied by the board of regents of the University 10of Wisconsin System. If payments are prorated under par. (a) in any year, the 11department shall assess costs under this paragraph as affected by the proration. 12The department shall transfer to the general fund an amount equal to the 13assessments in each year from the appropriate program revenue, program revenue-14service and segregated revenue appropriations. SB1112,615Section 6. Initial applicability. SB1112,3,1616(1) This act first applies to payments made in 2026.
