Numerous topics covered including what to do with the states projected revenue surplus that is now over $7 billion.
Viroqua Wis. – The state of Wisconsin has a two year budget process and the legislature is currently drafting the next biennial budget. The legislature’s Joint Finance Committee (JFC) drafts the state budget in conjunction with the Governor’s office. The JFC has been traveling the state recently to gather input from voters about what they would like to see in the next two year budget, specifically what voters would like them to do with the projected $7.1 billion surplus (and growing). The last few budget cycles has resulted in a tug of war between the Governor, who is a Democrat and the JFC which is made up mostly of Republicans (12-4).
Governor Evers introduced his version of the state budget earlier this year that emphasized investments in education, more assistant District Attorneys, a pay increase 5 percent and 3 percent for state employees, increases in shared revenue to local governments, more funding for conservation and environmental programs to mitigate forever chemicals like PFAS, and a middle class tax cut.
The legislature has until June 30 to get a budget proposal to Governor Evers. Once the Governor has the JFC version of the budget he will match it to his priorities. Governor Evers has a lot of power because he has line item veto authority over the budget. That means he can change individual lines in the budget and even individual words and numbers. Evers has used that ability effectively in the past budgets to meld his priorities with what the JFC hands him. By the numbers the legislature does not have enough votes to override his vetoes.
State Senator Brad Pfaff (D-Onalaska) is not on the JFC but he did stop at the Viroqua Library on Monday to get feedback from residents in this part of the state about what they would like to see in the budget. Pfaff started with a presentation about the four priorities he is focused on in the next budget. Pfaff said tax reform (a possible income tax cut), fixing roads and bridges, investment in public schools, increased shared revenue to local units of government are his priorities. Pfaff spent a little time explaining each of those priorities.
On tax reform Pfaff said he is open to adjusting some of the states four tax brackets. Specifically to two middle brackets and possibly the bottom three. Pfaff said he could see widening those brackets to help middle to lower income tax payers. Pfaff said he would not be in favor of lowering the top tax bracket as some Republicans have proposed from 7.65 percent to 5.9 percent.
The state’s current lowest tax rate is 3.54 percent, which applies to individuals earning less than $13,810 per year or married filers earning less than about $18,400. Wisconsin’s top tax rate of 7.65 percent applies to individuals earning more than $304,000 or married filers earning more than about $405,500.
About 97 percent of Wisconsin taxpayers paid 5.3 percent or less in 2021, according to the state Department of Revenue. Just 3 percent of filers were in the highest tax bracket.
Pfaff said he is in favor of increasing state aid to schools, especially in rural districts where declining enrollments are a problem. Pfaff said this often results in rural students not getting the same educational opportunities as urban students.
“Your zip code should not determine the quality of your education,” Pfaff said.
Governor Evers has proposed $2.6 billion in additional spending on education.
Pfaff said more aid is needed for roads and bridges even though Governor Evers significantly increased funding for transportation Wisconsin still has catching up to do after nearly a decade of decreased investment.
One of Pfaff’s major points of emphasis was in the areas of shared revenue, explaining that state sends money to local units of government for essential services like police protection, garbage collection and roads. Pfaff said he supports the Governors proposal to use 1 cent of the states 5 cent sales tax to increase shared revenue to local governments by $530 million.
“These services are not partisan services,” Pfaff said. “These are things every community has to do and the state needs to increase its aid to communities to do these things.”
Pfaff pointed to the recent referendum in the community of West Salem where the village had to ask taxpayers to raise the levy limit just to add some police officers to their police force.
“These are basic services that communities should not have to go to referendum on,” Pfaff said.
Pfaff took questions from constituents on a number of topics. Funding for the creative economy, funding for daycare programs, and a hot topic with the budget committee where he stands on the Governor’s proposal to invest $290 million to cover repairs and renovations at American Family Field. The governor’s office and the Brewers have said the team would agree to extend their lease by 13 years to 2043 in exchange for the money.
That proposal was called “dead on arrival” by Wisconsin Assembly Speaker Robin Vos recently. But Vos has shown signs that Republicans could soften on another version of that proposal not wanting to take the blame for the Brewers leaving Wisconsin and taking the revenue generated by the team with them. Some recent estimates show the team generates about $11 million annually in sales tax revenue generated by activity at the stadium as well as the $12 million in income taxes from players’ salaries, including those from visiting teams who play in American Family Field. One of downsides of the deal with the Brewers organization is the team does not own the stadium. The stadium is owned by the state and leased back, so if the team leaves the state is stuck with an empty building.
Pfaff said he needs hear directly from the team itself and they have not convinced him the state should be investing that much revenue in a stadium owned by some wealthy owners.
“They have not come and talked to us and made a good enough case yet,” said Pfaff. “I need to hear a better story from them about why this is needed. I would like to hear from them so they need to come talk to the legislature and make their case directly to us on that.”
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