HomeMy WebLinkAbout35. Correspondence from Re. Gordon Hintz on Local Government Funding
January 18, 2022
Oshkosh Common Council
215 Church Ave.
PO Box 1130
Oshkosh, WI 54903-1130
Dear Members of the Common Council,
Congratulations on the recently passed city budget. I recognize the challenge of funding important
priorities under fiscal restraints, and appreciate your service to our city.
During recent and past city budget deliberations, it has been impossible to ignore the impact of declining
state funding support from the Republican majority in the legislature. While “the state” gets the blame, I
think it is important to recognize that many members of the legislature - including myself - openly
advocate for increases in funding for municipalities. At a time when vibrant communities with quality
infrastructure and services are more important than ever in recruiting and retaining residents, too many
communities are faced with budget decisions that undermine quality of life and put Wisconsin
municipalities behind those of our neighboring states.
I am writing to revisit the 2021-23 state budget process to highlight missed opportunities, and express
surprise in the lack of advocacy and support by local governments when decisions were being made.
Governor Evers proposed 2019-21 and 2021-23 budgets included increases in state funding, and his
proposed 2021-23 budget included a voter approved local option for revenue.
Below are the amounts of aid that units of local governments and the City of Oshkosh would have
received under Governor Evers’ proposed increases to county and municipal aid (formerly shared
revenue) in the 2019-21 and 2021-23 biennial budgets:
Fiscal Year State Total City of Oshkosh
2019 $753,075,300 $9,609,853
2020 $768,137,200 $9,802,050
2021 $783,500,000 $9,998,091
2022 $799,170,000 $10,198,053
3-Year Increase: $46,094,700 $1,168,635
At our last city council/state legislator round table prior to introduction of the 2021-23 state budget, city
councilors and city staff expressed that an increase in state payments for municipal services (PMS) was
a top priority. The state has provided annual payments since 1973 to reimburse municipalities for all of a
(unfortunately small) portion of property tax supported expenses incurred in providing services to state
facilities, which are exempt from property taxation.
According to the Legislative Fiscal Bureau, “The last year in which the appropriation covered 100% of
entitlement costs was 1982, and the highest percentage of entitlement cost covered in the last 20 years
was 94.5% in 2000. The last increase in funding for PMS payments was in 2002 and program funding
was reduced in both the 2009-11 and 2011-13 budgets. Funding for PMS payments has been set at
$18,584,200 GPR since 2011, when funding for the program was reduced by 10%, from a previous level
of $20,649,200 GPR.”
In his 2021-23 proposed budget, Governor Evers proposed increasing funding for PMS payments by
$2,065,000 GPR annually, an 11% increase.
Fiscal Year State Total City of Oshkosh
2020 $18,584,200 $1,049,299
2021 $20,649,200 $1,165,893
2022 $20,649,200 $1,165,893
The City of Oshkosh would have received a potential PMS payment increase of $116,594 annually
under Governor Evers’ 2021-23 proposed budget.
If the Governor’s proposed 2019-21 and 2021-23 budget for county and municipal aid and PMS were
approved, the city of Oshkosh would have an additional estimated $704,794 in state funding in
fiscal year 2022.
Unfortunately, the Republican controlled legislature rejected these proposed increases, despite a
significant state fund balance. In fact, due to strong revenue growth, the state currently has a projected
fund balance of more than $1.6 billion. It would have cost roughly 2% of that balance to fund the
Governor’s 2021-23 proposed increase in for county and municipal aid and PMS.
Because of the lack of progress over the last decade of Republican control of the legislature, many key
constituencies in Wisconsin seemed resigned to flat or reduced funding. This resignation is often
mistaken for their being a lack of need for additional state investment. Both local government and the
UW system deserve tremendous credit for doing their best to maintain services and provide value
despite cuts in funding. But the goal should not be to stay afloat or get by. It should be to excel and
enhance. If we want to keep our communities safe, clean, and vibrant, the state needs to increase the
resources available to make those investments in municipal services.
Each budget over the past decade has involved less and less engagement by constituencies including
municipalities. The League of Wisconsin Municipalities, like many other groups, seemed to operate in
fear instead of actually advocating for their priorities. I feel like I heard a lot less from Oshkosh officials
by conversation, call, email or resolution this recent state budget than I have in the past. The answer is
always no if you don’t advocate and raise the issues. I strongly encourage the City and the League to
increase their engagement on the consequences of these budget decisions.
Despite the longest economic expansion in U.S. history (June 2009–Feb 2020), state funding for local
government and the UW System has declined. Yet, the state has its highest fund balance in decades.
These are the good times. If essential entities that require state investment can’t receive any new funding
in these times, what will happen to state funding when there is a recession?
Thank you for taking the time to read this letter. I hope you appreciated the detail on the almost $1.3
million that Legislative Republicans have cut from Governor Evers proposed budgets for the city of
Oshkosh. If I can ever be of assistance, please don’t hesitate to contact my office at 608-266-2254, or
me on my personal cell phone at 920-279-1870.
Sincerely,
Gordon Hintz
State Representative, 54th Assembly District
Cc: Mark Rohloff, City Manager, City of Oshkosh
Russ Van Gompel, Director of Finance, City of Oshkosh