Notes from the West Wing

By State Representative Garey Bies

Shared Revenue           

For this edition of Notes from the West Wing, I want to briefly talk about a budget issue receiving some press this week: Shared Revenue.  I am sure you are well aware that the Shared Revenue Program has been a quite contentious issue this budget cycle.  In the budget as it was introduced to the legislature, the Governor included a shared revenue proposal that was incredibly unfair, heavily favoring bastions of Democrat support, such as Milwaukee. 

As one might expect, the Republican-controlled legislature made significant changes to this shared revenue plan.  The legislature’s version of the budget included an across-the-board cut to shared revenue based on percentage.  Further, the Republicans included a hold-harmless provision so no community would face a cut in excess of 12%.  Even under the Republican plan, cities like Milwaukee did not face a 12% cut, but the communities that would have faced cuts of 30, 40, 50, even 60% under the Governor’s plan were spared to a maximum cut of 12% under the Republican plan. 

As you might expect, I felt the Republican plan was quite fair.  True, on a per-capita basis, some communities lost more than others under the Republican plan, but only if that community received more on a per capita basis to start with.  Further, those communities that do receive a higher per capita amount were also the communities that would realize a less than 12% cut under the Republican plan. 

This week, the Governor announced his veto plans for the Shared Revenue Program.  The Governor stated that his veto would eliminate the Republicans’ unfair proposal and replace it with his own that “will restore basic fairness.”  The indication from the Governor’s office is that his proposal will cut shared revenue by $13 per person with a 15% hold harmless provision.  However, according to the numbers provided by the Legislative Fiscal Bureau (LFB), the Governor’s “new” plan once again heavily favors areas that support Democrats and apparently without any attempt to moderate the discrepancies.  According to the LFB numbers I have, the hold-harmless provision does not exist.  As a result, in Door County alone, 17 of 19 communities face cuts of over 20% under the Governor’s new plan, and 14 of those communities face cuts of over 25%!  

Door County was not the only county in the district to fare poorly under the Governor’s proposal.  Kewaunee County has 8 communities that will face cuts greater than 20% under the Governor’s Shared Revenue proposal, and Brown County has 19 communities facing cuts over 20%!  Clearly the Governor’s Shared Revenue Proposal is not living up to the Administration’s claims.  Held harmless indeed! 

The Governor’s version of the Shared Revenue Program is extremely detrimental to the 1^st Assembly District, but beyond that, there is an inherent injustice to the plan.  At least the picture is a bit clearer as to what the Governor and Democrats consider “fair.” 

As always, if you have questions or comments on this column or any other topic you might see or read in the news, I can be reached by e-mail at Rep.Bies@legis.state.wi.us or by telephone, toll-free at 1-888-482-0001.