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The State Assembly Friday (April 28, 2006) defeated a Taxpayer Bill of Rights (TABOR) proposal that would have used the State Constitution to limit state and local government revenues, but sent to the Senate a plan that would place limits only on state government.
The vote was at least a partial victory for local government officials and advocates of local government services, although the impact of potential limits on state government would affect government services at all levels.
The defeat of local revenue limits was attributed in large part to a massive outcry against the “reckless fiscal policy” of using the State Constitution to place a stranglehold on government revenues. On the day before the Assembly vote, more than 100 organizations and more than 300 local government officials publicly registered their outrage over the proposal (photo above).
After an all-night session, the Assembly passed, on a 50-48 vote, a version of TABOR that would apply only to the state – not local – government. Nine Republicans joined all 39 Democrats in opposing the measure. The proposal would limit state revenue growth to 90% of the three-year rolling average percentage change in personal income. That proposal is now headed to the State Senate, where a vote could take place at any time.
The measure still spells bad news for Wisconsin's great schools, said WEAC President Stan Johnson. It would shift the tax burden to local property taxpayers while jeopardizing state funding for education, he said.
Johnson praised WEAC members for their hard work in helping to defeat TABOR’s local government and school district constitutional limits which would have directly devastated schools already struggling financially as result of school district revenue limits and other government policies.
Johnson said WEAC members used OnWEAC to “cyberlobby” their legislators, attended a WEAC Lobby Day, wrote letters, discussed the potential impact of TABOR with the media, attended and testified at numerous public hearings and community meetings, and supported the large coalition of organizations that banded together to fight TABOR.
“WEAC members played no small role in getting TABOR’s local government limits defeated,” he said.
He said WEAC members would continue to fight to defeat the state government limits in the plan approved by the Assembly. Those limits could severely undermine many essential state government services, including services provided through the Department of Public Instruction to local school districts and educational programs offered through state institutions. WEAC represents hundreds of educators in DPI and state institutions.
Constitutional limits on state government revenues also could have severe impacts on state aid to local governments and school districts, resulting in cuts to local government services and school district programs and forcing increases in property taxes, he said.
“Legislators are elected to make ongoing tax and spending decisions in the light of day. That’s why we elect them,” Johnson said. “They should not be hiding behind a constitutional provision that makes decisions for them and that is unpredictable and unreasonably rigid.”
The final Assembly product was the result of long negotiations by Republicans behind closed doors in the dead of the night. Observers said it was a face-saving move by Republican leadership to produce something – anything – that would garner enough votes to pass the Assembly. Critics said the plan was passed without any analysis of its impact or consequences.
The early morning vote came after the Assembly overwhelming defeated a version of TABOR authored by Rep. Lasee (R-Bellevue) that would have restricted revenue growth by the state and local government. That version failed 32-66.
The vote margin was reflective of the growing opposition to the concept of TABOR – the idea that government taxing and spending decisions could be dictated by a formula in the State Constitution. Critics have repeatedly pointed to Colorado, where TABOR gutted government services until angry voters finally removed its key provision in a statewide referendum.
One day prior to the Assembly vote, WEAC participated in an anti-TABOR press conference with representatives of more than 100 organizations. About 80 people appeared in unity at a news conference to warn about the severe consequences the amendment would have on government services from health care to education to assistance for the elderly and disabled.
“This hurts business, this hurts kids, this hurts seniors, this hurts education, this hurts health care, this hurts the environment,” said Dane County Executive Kathleen Falk.
She and other speakers said it is unnecessary and reckless to place severe tax limitations in the State Constitution. Elected officials have the ability and responsibility to manage budgets for state, county and local governments, they said.
Karen Robinson, of the Wisconsin Coalition of Aging Groups, said the Taxpayer Protection Amendment – a variation of TABOR – is “the greatest fundamental change to the Constitution since it was created,” and yet it is being continuously redrafted at the last minute without a public hearing or public input. “This is irresponsible,” she said.
WEAC Vice President Terry Meyer represented WEAC at the news conference and, although he did not speak, he released a statement calling the TPA and any form of TABOR “flawed and reckless fiscal policy.”
TABOR, he said, “has decimated public education and children’s services in Colorado.”
“The backers of the Taxpayer Protection Amendment would tamper with the State Constitution instead of making tough decisions and having real discussions about public policy and public resources in the light of day,” Meyer said. “This amendment would cause irreparable harm to Wisconsin’s great schools at a time when we all know that our economic future is more dependent than ever on what our children learn in school.”
Milwaukee Teachers’ Education Association President Dennis Oulahan said the TPA or any form of TABOR would have a devastating impact on Milwaukee public schools, which he said already are reeling from the impact of state revenue controls, the severely underfunded federal No Child Left Behind law, the growth of private school vouchers and open enrollment. Since 2003, he said, MPS has lost 700 teachers and 400 education support professionals.
Organizers of the news conference passed out a petition signed by more than 300 local elected officials calling for rejection of the TPA. It says Wisconsin citizens depend on government services and that the TPA would force "serious cutbacks" in education, police protection, emergency responders, firefighters, snow removal, road maintenance, child protection services, meals-on-wheels, park maintenance, library access, public health, and sanitation services.
"TPA also cuts away at our greatest asset for creating local economic development - our strong communities and excellent quality of life," the petition states.
Posted April 28, 2006