(The Center Square) – There is a new warning about the future of Act 10.
The Wisconsin Institute for Law and Liberty on Thursday released a new Act 10 property tax calculator which it says “allows individuals to input their school district and property value, providing them with an estimated increase in property taxes if Act 10 were repealed.”
Act 10 helped slow the growth of property taxes across Wisconsin by limiting how local, government sector unions could negotiate their contracts. Act 10’s biggest impact was on teachers’ unions, and limited those contract negotiations to salaries only.
Act 10 supporters say those limits, along with other reforms, have saved Wisconsin taxpayers between $18 billion and $31 billion since 2011.
“Act 10 has been a win for Wisconsin taxpayers, slowing the growth of government and the constant threat of massive property tax hikes. Without it, taxpayers could be on the hook for billions in tax increases in the coming years,” WILL research director Will Flanders said Thursday.
There is a new push, however, to end Act 10.
A Dane County judge last year ruled that parts of Act 10 are unconstitutional. The Wisconsin Supreme Court this month refused to fast track that ruling, but the case is expected to end-up before the liberal majority court.
WILL said the Act 10 property tax calculator shows that the average homeowner would pay at least $624 more per-year in property taxes if Act 10 is struck down, and the new costs are passed on to taxpayers.
Though WILL warns homeowners in some school districts would pay much more. For example, the property tax calculator says the average cost of ending Act 10 would cost Milwaukee homeowners $1,300 more. That price tag jumps to over $1,800 in Watertown, and to over $2,400 more in Beloit.
Flanders said ending Act 10 would put homeowners and taxpayer back on the hook for 100% of retirement costs, and nearly all of health insurance costs for teachers.
“School districts and local governments could once again be pressured to cater to public-sector union demands, leaving hardworking taxpayers to shoulder the burden of skyrocketing costs,” he said.
WILL said repealing Act 10 could cost as much as $1.6 billion each year in new costs for school districts, and another $480 million in new, yearly costs for local governments.
