Senate Approves Republican Property Tax Gimmick

The state Senate on Tuesday (February 22, 2005) voted in favor of a revised Republican property tax gimmick that Governor Jim Doyle said would severely harm schools by reducing education funding.

"Wisconsin citizens shouldn't have to choose between quality schools and property tax relief," he said in a statement. "The only way to freeze property taxes responsibly is for the state to fulfill its obligations to local communities so that schools and vital services such as police and firefighters are protected. Unfortunately, the Republican plan fails that test."

Democrat Tim Carpenter was the only senator to cross party lines and join the Republicans in support of AB 58 in Tuesday's vote. Carpenter represents the 3rd Senate District, which is in Milwaukee.

The Assembly approved the measure earlier this month. The proposal now moves to the governor, who is expected to veto it.

WEAC President Stan Johnson urged members to use the OnWEAC Cyberlobby to encourage Governor Doyle to protect the state's great schools and other public services by vetoing the property tax freeze gimmick.

"Legislative leaders are playing a dangerous game with the future of our children and our state," Johnson said. "They are passing proposals that will gut our great school system."

Johnson asked members to contact their legislators and encourage them to support the governor's tax freeze proposal, which Doyle unveiled February 8 in his 2005-07 state budget proposal. “Governor Doyle is offering a solid, balanced plan to use taxpayer resources wisely,” Johnson said. “The budget offers realistic solutions, not gimmicks.”

“The difference between my plan and the Republican plan is clear,” Doyle said in a statement about his budget proposal. “Under my budget, the state meets its commitments to schools and local services, providing significant new resources to take the burden off local property taxpayers.

"Republicans want to freeze taxes by forcing communities to cut education, without any guarantee of new state funding. My plan is responsible and workable; theirs is a gimmick that would be a disaster for public education.”

Doyle said the only responsible way to freeze property taxes is as part of the state budget "so that we know we are meeting our commitments to schools and local services."

“Republicans are putting the cart before the horse – limiting how much a community can spend without guaranteeing that the state will provide the resources needed to maintain quality schools," he said.

Doyle said his property tax freeze proposal (AB 100):

• Retains the existing revenue caps on schools but meets the state’s commitment to pay two-thirds of the cost of a child’s education – an investment of $850 million in education and property tax relief.
• Fully funds shared revenue for local governments to protect vital services like police and firefighters.
• Sets strict limits on how much local governments can raise their tax levies.
• Provides $100 million in incentives for local government that hold their levies even lower than what the governor’s freeze allows.

He said the Republican property tax plan:

• Doesn’t guarantee any new funding for education.
• Could reduce the overall amount spent on Wisconsin public schools by up to $716 million over the next two years, by reducing per-pupil revenue caps.
• Limits local tax levies without accounting for inflation, eroding the quality of local services.
• Doesn’t guarantee any funding for shared revenue – offering no protection for vital local services.
• Does not offer incentives for local governments that hold taxes even lower.

The Republican plan approved Tuesday by the Senate is a revised version of one of the measures endorsed February 1 by the Joint Finance Committee despite a day of overwhelming public opposition at a public hearing in Pewaukee.

Representatives of the education community, including WEAC members from K-12 schools and technical colleges, showed up in force at the Pewaukee hearing to explain how the proposal would harm all levels of public education in Wisconsin.

Waukesha teacher Cathy Atkinson, along with local parents, told of the drastic cuts in programs that revenue controls have forced the Waukesha school district to make.

"How can you support a proposal such as this, knowing the damage it will do to the outstanding public education system in Wisconsin?" she said. "The state of Wisconsin ranks at or near the top in numerous measures of educational excellence. The limits proposed in these bills will devastate public school programs and services throughout the state."

Atkinson said Waukesha schools would lose an additional $1.6 million over the next two years if the proposal becomes law.

"What kind of message are you sending to your most vulnerable constituents with legislation like this?" she asked. "How can we as a society tell children that they should value education, yet they see legislation like this that clearly does not? What kind of models are we being for our children?"

Muskego teacher Peggy Fullmer testified about changes her school district is making to help control rising health care costs.

Milwaukee Public Schools teacher Dennis Oulahan told committee members that Milwaukee has made devastating cuts to programs and services. MPS Superintendent Bill Andrekopoulos and school board member Jennifer Morales testified that MPS has eliminated 1,000 positions in the last two years and is in the process of closing four schools.

Gateway Technical College instructor Steve Whitmoyer told the committee that Wisconsin residents and businesses directly benefit from the Wisconsin Technical College System.

"The tax freeze chokes off resources to the technical colleges," Whitmoyer said. "In doing so, the freeze limits the ability of the technical colleges to respond to the rapidly evolving demands of Wisconsin's businesses and meet the training needs of Wisconsin residents."

"The bills offered today would inflict immediate and massive harm on Wisconsin's schools and staff," according to WEAC prepared testimony. "AB 58 and SB 28 represent reckless fiscal policy that would seriously impair school district and local government operations, and damage the ability of technical colleges to train the workforce of the future. The proposals would jeopardize Wisconsin residents' investment in public education and starve school districts of the resources they need to create a great school for every child."

Resource page on tax gimmicks
Resource page on 2005-07 state budget

Posted February 3, 2005; Updated February 23, 2005