MONROE - Municipal taxpayers on average across the state have been footing an increasingly larger share of the revenues, and thus the spending, of their municipalities, according to data released in April by the Wisconsin Taxpayers Alliance, a nonpartisan and independent private government research organization.
Local figures for Green and Lafayette counties, obtained by The Times from WISTAX, show some local taxpayers are coughing up a bigger share in their cities than most of their neighbors in surrounding villages, even while most municipalities are using state shared revenues for a large portion of their revenues, in most cases two to three times as much as the state average. Nic Owen, New Glarus village administrator, and Phil Rath, Monroe city administrator, reviewed the WISTAX figures and said the numbers look accurate compared to their municipal accounts. But both added that factors not included in the WISTAX summary charts affect revenues and expenses differently in villages and cities.
"Even attempting to interpret the data is misleading as it does not account for so many other factors," Rath said. "What is the total population? What is the proximity to a major city? What is the proximity to the county seat? Is the workforce unionized? Does the municipality share services with another municipality?"
In the WISTAX analysis, general property taxes in 2009, presented on a per capita basis and averaged for all Wisconsin cities and villages, were 31.4 percent of the $6.2 billion in total city/village revenues.
That is an increase from 28.5 percent in 2002. General property tax numbers do not include taxes from tax increment districts (TIF), which accounted for an additional 5.4 percent of revenues.
Property taxes averaged for Green County's seven municipalities came to about 34.5 percent of total revenues, while in Lafayette County's eight municipalities, property taxes made up only about 20 percent. Local property taxes as a percentage of 2009 revenues were greater than the state average in one-third of the two counties' municipalities, Brooklyn (56.2), Brodhead (43.3), Darlington (36.3), Monroe (35.2) and New Glarus (32.1).
Of the five, Monroe and New Glarus, both with administrators, managed to keep their property taxes increases below an average of 3 percent annually between 2002 and 2009.
Property taxes as a percent of revenues were smallest in Gratiot (8.0), Argyle (13.2), Browntown (16.0), Benton (16.4) and South Wayne (16.7).
In its April review publication, The Wisconsin Taxpayer, WISTAX explained that increases in state spending for prisons, schools, and health care for the disadvantaged in the past 20 years, as well as recent fiscal problems, has contributed to "eroding state aid" for cities and villages.
In 2009, state shared revenue to all Wisconsin cities and villages fell to 11.7 percent of their total revenues, down from 15.1 percent in 2002. State shared revenues made up 25.8 percent of municipal revenues in 1987 and 21.5 percent in 1995, while property taxes held stable at slightly more than 28 percent.
According to WISTAX data, municipalities in Green and Lafayette counties in 2009 received per capita state shared revenues between $130 in New Glarus, which was 7.4 percent of its revenues, and $435 in Shullsburg, which was 46.2 percent of its revenues.
"The village receives the base shared revenue payment, a utility payment and the expenditure restraint payment," Owen said. "I do not know the exact formula for the base payment; it is rather complex and has undergone a number of changes over the last few Legislative sessions."
Owens referred to documents from the Wisconsin Legislature Fiscal Bureau, dated January 2011, and from the Wisconsin Department of Revenue, Division of Research and Policy, dated Oct. 6, 2010, for more information on the state shared revenue program.
The Department of Revenue explains the formulas for state shared revenues have under gone numerous changes since they began in 1911, particularly in 1972 and 2001.
Shared revenues formulas were suspended for municipalities in 2002 and 2003; payments were calculated as 101 percent of the previous year payment.
Small municipalities, with populations under 5,000 and meeting specific criteria for property tax rates and equalized value amounts, received a shared revenue payment calculated differently than larger municipalities, from 1994 to 2003.
In 2004, "base payments," based on 2003 payments, were instituted in lieu of per capita payments, and utility payments were reinstated.
From 2005 to 2009, base payments were equal to the amount paid in 2004, after adjustments.
Utility payments and base payments were calculated under new formulas in 2010. From 2011 on, utility payments are recalculated each year; other payments will be equal to the amount paid in 2010.
"The base aid formula takes into account a number of things including a municipality's population, annual levy and per capita equalized value," Owen said. "Being closer to Dane County, New Glarus' equalized value per capita is higher than other Green County communities, and as I noted, our tax levy is higher as well, which I would imagine contributes to why our shared revenue is lower. The utility payment is for tax exempt utility infrastructure and the Expenditure Restraint (ERP) is an amount received for not exceeding the previous year's expenses by a set percentage."
Monroe received $160 per capita, and its state shared revenue represented 10.3 percent of its total revenue. All other local municipalities used state shared revenue for a portion of their revenues greater than the state average.
"Revenues typically come from three sources: state aid, fees, and taxes," said Rath. "Over the past few years, municipalities have experienced a reduction in state aids. At the same time, the cost of providing services has increased. In some areas, municipalities have been able to enforce and/or increase fees to cover the gaps. Other municipalities have needed to increase taxes and/or use any available fund balance. For the 2012 budget, the City of Monroe is attempting to approach the budget gaps from a new direction with the development of a committee to review services and how they are funded. This committee will focus on the issue from the expenditure side."
Of the municipalities whose 2009 revenues were supported by property taxes more than the state average, other than New Glarus and Monroe, state shared revenues made up 17.6 percent of revenues in Brooklyn, 23.7 percent in Brodhead, and 29.8 percent in Darlington.
The four municipalities with a smaller-than-average portion of revenue coming from property taxes relied twice as heavily on state shared revenues as they did the taxes: Gratiot (16.6), Argyle (26.4), Browntown (34.8) and Benton (38.0).
- Tomorrow: Part 2 - Where the money goes.
Local figures for Green and Lafayette counties, obtained by The Times from WISTAX, show some local taxpayers are coughing up a bigger share in their cities than most of their neighbors in surrounding villages, even while most municipalities are using state shared revenues for a large portion of their revenues, in most cases two to three times as much as the state average. Nic Owen, New Glarus village administrator, and Phil Rath, Monroe city administrator, reviewed the WISTAX figures and said the numbers look accurate compared to their municipal accounts. But both added that factors not included in the WISTAX summary charts affect revenues and expenses differently in villages and cities.
"Even attempting to interpret the data is misleading as it does not account for so many other factors," Rath said. "What is the total population? What is the proximity to a major city? What is the proximity to the county seat? Is the workforce unionized? Does the municipality share services with another municipality?"
In the WISTAX analysis, general property taxes in 2009, presented on a per capita basis and averaged for all Wisconsin cities and villages, were 31.4 percent of the $6.2 billion in total city/village revenues.
That is an increase from 28.5 percent in 2002. General property tax numbers do not include taxes from tax increment districts (TIF), which accounted for an additional 5.4 percent of revenues.
Property taxes averaged for Green County's seven municipalities came to about 34.5 percent of total revenues, while in Lafayette County's eight municipalities, property taxes made up only about 20 percent. Local property taxes as a percentage of 2009 revenues were greater than the state average in one-third of the two counties' municipalities, Brooklyn (56.2), Brodhead (43.3), Darlington (36.3), Monroe (35.2) and New Glarus (32.1).
Of the five, Monroe and New Glarus, both with administrators, managed to keep their property taxes increases below an average of 3 percent annually between 2002 and 2009.
Property taxes as a percent of revenues were smallest in Gratiot (8.0), Argyle (13.2), Browntown (16.0), Benton (16.4) and South Wayne (16.7).
In its April review publication, The Wisconsin Taxpayer, WISTAX explained that increases in state spending for prisons, schools, and health care for the disadvantaged in the past 20 years, as well as recent fiscal problems, has contributed to "eroding state aid" for cities and villages.
In 2009, state shared revenue to all Wisconsin cities and villages fell to 11.7 percent of their total revenues, down from 15.1 percent in 2002. State shared revenues made up 25.8 percent of municipal revenues in 1987 and 21.5 percent in 1995, while property taxes held stable at slightly more than 28 percent.
According to WISTAX data, municipalities in Green and Lafayette counties in 2009 received per capita state shared revenues between $130 in New Glarus, which was 7.4 percent of its revenues, and $435 in Shullsburg, which was 46.2 percent of its revenues.
"The village receives the base shared revenue payment, a utility payment and the expenditure restraint payment," Owen said. "I do not know the exact formula for the base payment; it is rather complex and has undergone a number of changes over the last few Legislative sessions."
Owens referred to documents from the Wisconsin Legislature Fiscal Bureau, dated January 2011, and from the Wisconsin Department of Revenue, Division of Research and Policy, dated Oct. 6, 2010, for more information on the state shared revenue program.
The Department of Revenue explains the formulas for state shared revenues have under gone numerous changes since they began in 1911, particularly in 1972 and 2001.
Shared revenues formulas were suspended for municipalities in 2002 and 2003; payments were calculated as 101 percent of the previous year payment.
Small municipalities, with populations under 5,000 and meeting specific criteria for property tax rates and equalized value amounts, received a shared revenue payment calculated differently than larger municipalities, from 1994 to 2003.
In 2004, "base payments," based on 2003 payments, were instituted in lieu of per capita payments, and utility payments were reinstated.
From 2005 to 2009, base payments were equal to the amount paid in 2004, after adjustments.
Utility payments and base payments were calculated under new formulas in 2010. From 2011 on, utility payments are recalculated each year; other payments will be equal to the amount paid in 2010.
"The base aid formula takes into account a number of things including a municipality's population, annual levy and per capita equalized value," Owen said. "Being closer to Dane County, New Glarus' equalized value per capita is higher than other Green County communities, and as I noted, our tax levy is higher as well, which I would imagine contributes to why our shared revenue is lower. The utility payment is for tax exempt utility infrastructure and the Expenditure Restraint (ERP) is an amount received for not exceeding the previous year's expenses by a set percentage."
Monroe received $160 per capita, and its state shared revenue represented 10.3 percent of its total revenue. All other local municipalities used state shared revenue for a portion of their revenues greater than the state average.
"Revenues typically come from three sources: state aid, fees, and taxes," said Rath. "Over the past few years, municipalities have experienced a reduction in state aids. At the same time, the cost of providing services has increased. In some areas, municipalities have been able to enforce and/or increase fees to cover the gaps. Other municipalities have needed to increase taxes and/or use any available fund balance. For the 2012 budget, the City of Monroe is attempting to approach the budget gaps from a new direction with the development of a committee to review services and how they are funded. This committee will focus on the issue from the expenditure side."
Of the municipalities whose 2009 revenues were supported by property taxes more than the state average, other than New Glarus and Monroe, state shared revenues made up 17.6 percent of revenues in Brooklyn, 23.7 percent in Brodhead, and 29.8 percent in Darlington.
The four municipalities with a smaller-than-average portion of revenue coming from property taxes relied twice as heavily on state shared revenues as they did the taxes: Gratiot (16.6), Argyle (26.4), Browntown (34.8) and Benton (38.0).
- Tomorrow: Part 2 - Where the money goes.