2005-2007 State Budget Brief


2005-2007 State Budget Brief Benefiting all Wisconsin citizens Background Tension is mounting between property taxpayers and our education system. While Wisconsinites want our children to receive a quality education, they also want relief from the property tax burden in this state. The state can deliver property tax relief to its citizens without harming schools and vital services by meeting its two-thirds commitment to funding schools and fully funding shared revenue, which provides state aid to local governments. Freezing taxes without making these critical investments could spell disaster for education and local services. Investments to benefit all Wisconsin citizens contained in 2005-2007 budget The governor’s budget proposal for 2005-2007 will benefit all Wisconsin citizens by: Providing $700 million in increased school equalization aid and $150 million in levy credits to freeze property taxes. Combining state aid, tax credit, levy limit, levy restraint incentives and new cooperation authority into an overall property tax relief package that: Saves the typical homeowner $366 over the biennium compared to property taxes in the absence of the governor’s initiatives. Limits growth in statewide property taxes to the rate of new construction. Holds the overall statewide total property tax increase lower than in any of the last eight years (excluding lottery credits). Increasing property tax relief in areas of the state with lower relative property values by distributing the $150 million increase in the school levy credit on an equalized basis. Including a provision to “buy back” the additional school levy credit if 2005-07 state general fund revenues exceed budget projections. Requiring school districts to provide greater public accountability for the fund balances they maintain and requiring school boards to vote on maintaining fund balances in excess of 90% of the state average. Allowing school districts to carry over 100% of their unused revenue limit authority to eliminate the current incentive to increase school taxes to the maximum allowable. WEAC position The Wisconsin Education Association Council supports providing property tax relief in a way that protects schools and preserves the quality of local services as proposed in the governor’s 2005-2007 biennial budget bill. Talking points Governor Doyle’s budget proposal will: Deliver historic relief to Wisconsin property taxpayers while protecting education by meeting the state’s commitment to pay two-thirds of the cost of public education – an investment of $850 million in education and property tax relief. Give communities the resources to protect vital services like police and firefighters by fully funding shared revenue and allowing communities to raise their levies to reflect both inflation and growth. Reward local governments for how much they are able to keep their levies even lower so there will not be an incentive to tax to the maximum of the limit. Promote economic development by fostering regional cooperation and protecting the state’s technical colleges. Additional information If you have comments or questions, please contact Deb Sybell, WEAC Legislative Program Coordinator, at sybelld@weac.org or by phone at 800-362-8034 ext. 227.

2005-2007 State Budget Brief

Benefiting all Wisconsin citizens

Background
Tension is mounting between property taxpayers and our education system. While Wisconsinites want our children to receive a quality education, they also want relief from the property tax burden in this state.

The state can deliver property tax relief to its citizens without harming schools and vital services by meeting its two-thirds commitment to funding schools and fully funding shared revenue, which provides state aid to local governments. Freezing taxes without making these critical investments could spell disaster for education and local services.

Investments to benefit all Wisconsin citizens contained in 2005-2007 budget
The governor’s budget proposal for 2005-2007 will benefit all Wisconsin citizens by:

Providing $700 million in increased school equalization aid and $150 million in levy credits to freeze property taxes.
Combining state aid, tax credit, levy limit, levy restraint incentives and new cooperation authority into an overall property tax relief package that:
- Saves the typical homeowner $366 over the biennium compared to property taxes in the absence of the governor’s initiatives.
- Limits growth in statewide property taxes to the rate of new construction.
- Holds the overall statewide total property tax increase lower than in any of the last eight years (excluding lottery credits).
Increasing property tax relief in areas of the state with lower relative property values by distributing the $150 million increase in the school levy credit on an equalized basis.
Including a provision to “buy back” the additional school levy credit if 2005-07 state general fund revenues exceed budget projections.
Requiring school districts to provide greater public accountability for the fund balances they maintain and requiring school boards to vote on maintaining fund balances in excess of 90% of the state average.
Allowing school districts to carry over 100% of their unused revenue limit authority to eliminate the current incentive to increase school taxes to the maximum allowable.

WEAC position
The Wisconsin Education Association Council supports providing property tax relief in a way that protects schools and preserves the quality of local services as proposed in the governor’s 2005-2007 biennial budget bill.

Talking points
Governor Doyle’s budget proposal will:

Deliver historic relief to Wisconsin property taxpayers while protecting education by meeting the state’s commitment to pay two-thirds of the cost of public education – an investment of $850 million in education and property tax relief.
Give communities the resources to protect vital services like police and firefighters by fully funding shared revenue and allowing communities to raise their levies to reflect both inflation and growth.
Reward local governments for how much they are able to keep their levies even lower so there will not be an incentive to tax to the maximum of the limit.
Promote economic development by fostering regional cooperation and protecting the state’s technical colleges.

Additional information
If you have comments or questions, please contact Deb Sybell, WEAC Legislative Program Coordinator, at sybelld@weac.org or by phone at 800-362-8034 ext. 227.