Wisconsin lawmakers look to increase municipal reimbursement by $31M

(The Center Square) – A group of Wisconsin Republican lawmakers is looking to increase spending by $31 million annually in state payments to municipalities to cover the expense of providing services to state buildings.

A group of seven Republican sent a budget motion to the state’s Joint Finance Committee asking it to ensure that the state will meet its agreed-upon payments for police, fire and waste services to municipalities.

“We as a state should fulfill our statutory commitment with municipalities,” co-author Rep. Scott Allen, R-Waukesha, said in a statement. “It is not right to require municipalities to provide service to the state and not reimburse them.”

Wisconsin Gov. Tony Evers put $17 million in his proposed budget to increase payments starting in the 2025-26 fiscal year through the Municipal Services Payments Program while adding automatic payment increases into budgets for the years following.

The program was created to decrease property tax liabilities for local taxpayers by making services for state-owned buildings a state cost.

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The program was fully funded in 1980 but the co-sponsors say that it has been underfunded since 1982.

The state only covered an estimated 37% of the costs in 2024 and the budget motion is aimed at having the state pay the entire cost of those services.

“Our first priority in budget spending must be to meet our obligations,” Allen said. “That is responsible budgeting.”

The motion is co-sponsored by Reps. Allen, David Armstrong, R-Rice Lake, Rick Gundrum, R-Slinger, Dave Maxey, R-New Berlin, Clint Moses, R-Menomonie, Jerry O’Connor, R-Fond du Lac, and Rob Swearingen, R-Rhinelander.

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