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Per capita spending on the rise
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MONROE - Per capita spending rose an average of 2.5 percent per year from 2002 to 2009 in all Wisconsin cities and villages, according to The Wisconsin Taxpayers Alliance, a nonpartisan and independent private government research organization. The 2009 state average, excluding capital layout, was $1,295.

Cities and village that spent the most per capita in Green and Lafayette counties in 2009 were New Glarus ($1,341), Gratiot ($1,075) and Monroe ($1,033). Benton, South Wayne and Argyle each spent less than $650 per capita.

According to Phil Rath, Monroe city administrator, some expenses come into the budget as unfunded or underfunded mandates from the state.

"Municipalities are charged with providing the services at the level citizens desire and often times may be required to provide services (mandates)," Rath said. "A majority of the time these 'mandates' do not provide sufficient funding to carry out the service. Other times funding goes away after a period of time. Since it is very unpopular to cut or reduce services (expenditures), municipalities typically will attempt to maintain services while finding the supporting revenues."

The largest annual expenditure increases from 2002 to 2009 were in Gratiot (14.8 percent per year), Browntown (8.7 percent), Blanchardville (6.7 percent) and Argyle (6.4 percent). Non-capital spending declined in Shullsburg (-5.3 percent), Benton (-4.7 percent), South Wayne (-2.1 percent), and Brodhead (-0.9 percent).

WISTAX found that, despite the slow growth in overall spending statewide between 2002 and 2009, public safety spending grew at an annual rate of 3.3 percent, similar to the previous period, 1995 to 2002, and debt service became the top spending category.

According to the WISTAX April issue of The Wisconsin Taxpayer, "as of 2009, debt service was the largest municipal expenditure, at $274 per capita and 18.0 percent of the total."

"One likely factor behind the rise in debt service," according to the article, "was the expanded use of TIF districts," as municipalities borrow money to fund TIF expenses and use the TIF revenues to repay the debt. Property taxes from TIF districts, dependent upon the creation of new districts or growth in the existing ones, rose faster after 1995 than prior years across the state.

Rath said he did not dispute WISTAX's statement about TIF districts having an impact, but he added that other factors come into play when it comes to revenues.

"To some degree this (TIF impact) may be true - especially for some municipalities," he said. "Another factor to consider is the levy limits in place over the past few years.

"The levy limit prohibited municipalities from increasing taxes beyond a stated percentage or net new growth, whichever was greater. Municipalities violating this limit were penalized by reduced state aid. Aside from the net new growth clause, municipalities were not penalized for any debt service accrued after 2005. Some municipalities may have financed some of their operating costs by incurring additional debt service."

In Green and Lafayette counties, municipal debt service spending per capita in 2009 ranged from $566 in New Glarus to zero in Benton and Browntown. Gratiot spent $530 per capita; Blanchardville spent $263; and all other cities and village spent less than $200.

Nic Owen, New Glarus village administrator, said he and Lynne Erb, village clerk and treasurer, looked at the WISTAX figures, and found that they looked "in line" with their accounts.

"Probably the biggest thing that puts us above the other area municipalities is our debt service," Owen said. "For years the maintenance of infrastructure was put off in order to keep taxes down and in recent years that has caught up with us. While we are on the high side for levy, the administration and board have worked to try to keep our levy consistent with only a 2.2 percent increase from 2002-2009."

Spending on police was the second largest municipal non-capital expenditure in 2009 statewide, averaging $245 per capita, according to WISTAX.

Municipal law enforcement costs per capita in Green and Lafayette counties ranged from $304 in Brodhead and $269 in Monroe to $51 in Benton and $71 in Blanchardville. Gratiot and Browntown had no law enforcement costs. Brodhead and Monroe law enforcement costs rose an average of slightly more than 4 percent annually between 2002 and 2009. Argyle law enforcement costs, at $126 per capita in 2009, rose an average of 11.2 percent annually between 2002 and 2009.

The difference in spending can be attributed to the difference in police services provided.

"While law enforcement is typically one of the largest expenditures for municipalities, it is hard to calculate across municipalities because of the varying levels and types of service a department may provide," Rath said.

"General government costs may also be difficult to compare," he added. "One reason is insurance and other costs that cover the entire municipality are typically charged against this department. These expenditures typically inflate the department and may vary greatly by number of employees and services provided."

Transportation, primarily road construction and maintenance, and general government, which includes administration legal counsel and buildings, are the only other budget areas in which Wisconsin cities and villages spent more than $100 per capita during 2009, according to WISTAX. In both areas, costs as a share of expenses in 2009 were down across the state since 2002.

Per capita spending for general government in state municipalities averaged $118 in 2009. WISTAX figures for transportation were not available.

Nine of Green and Lafayette counties' 15 municipalities spent more than the state average for general government. Gratiot and Brooklyn each spent the most, more than $170, per capita. Albany, Monroe, and Shullsburg spent less than that state average, but more than $100 per capita. Benton, South Wayne and Brodhead spent less than $100 per capita.