2023 - 2024 LEGISLATURE
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2023 ASSEMBLY BILL 256
May 8, 2023 - Introduced by Representatives MACCO, O'CONNOR, ALLEN,
ARMSTRONG, BEHNKE, DITTRICH, GUNDRUM, MAGNAFICI and SCHRAA. Referred to
Committee on Local Government.
1 AN ACT to repeal 20.835 (1) (c), 20.835 (1) (db), 20.835 (1) (dm), 20.835 (1) (e),
2 20.835 (1) (f), 20.835 (1) (fa), 20.835 (1) (r), 49.45 (51), 79.01, 79.02 (3) (e) and
3 79.035 (1); to renumber 79.02 (3) (a); to amend 79.035 (4) (c) 2., 79.035 (4) (d)
4 2., 79.035 (4) (e) 2., 79.035 (4) (f) 2., 79.035 (4) (g), 79.035 (4) (h), 79.035 (4) (i),
5 79.035 (5) and 79.05 (3) (d); to repeal and recreate 79.035 (5) and 79.035 (9)
6 (intro.); and to create 16.5185 (3), 16.5186, 20.835 (1) (s), 20.835 (1) (t), 20.835
7 (1) (u), 20.835 (1) (v), 20.835 (1) (w), 20.835 (1) (x), 25.17 (1) (jf), 25.491, 79.035
8 (9) and 79.05 (4) of the statutes; relating to: increasing county and municipal
9 aid payments and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, each county and municipality annually receives county and
municipal aid payments. With certain exceptions, each county and municipality
receives a county and municipal aid payment equal to the amount of the payment the
county or municipality received in 2012. This bill creates a trust fund designated as
the local government aid fund, to consist of moneys transferred each fiscal year from
the general fund. In the 2024-25 fiscal year, the amount transferred into the local
government aid fund is equal to 20 percent of the amount of state sales and use tax
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ASSEMBLY BILL 256
revenues, and in subsequent fiscal years the amounts transferred into the fund for
public utility aid, county and municipal aid, per capita deficiency aid, and additional
county and municipal aid will increase by the percentage increase in the amount of
sales and use tax revenue from the previous fiscal year to the current fiscal year. In
2024, counties and municipalities will receive a county and municipal aid payment
equal to the amount of the payment received by the county or municipality in 2012,
and in subsequent years, each payment will increase by the percentage increase in
the amount of sales and use tax revenue. The bill also requires the Department of
Revenue to distribute a per capita deficiency aid payment to certain towns, cities,
villages, and counties. The total amount available to be distributed as per capita
deficiency aid payments will increase each year by the percentage increase in the
amount of sales and use tax revenue.
In addition, each county and municipality will receive an additional payment
from the local government aid fund to use for hiring, training, and retaining law
enforcement officers, members of a paid fire department, and emergency medical
responders and for local highways. Under the bill, this payment is equal to 10
percent of the total amounts that a county or municipality receives for county and
municipal aid payment and for per capita deficiency aid. If in any year a county or
municipality decreases the amount of its budget dedicated to hiring, training, and
retaining law enforcement officers, members of the paid fire department, and
emergency medical responders and for local highways, so that the amount is less
than the amount so dedicated in the previous year, the secretary of the Department
of Administration will reduce the county's or municipality's additional payment by
the amount of the decrease in the county's or municipality's budget dedicated to
hiring, training, and retaining law enforcement officers, members of the paid fire
department, and emergency medical responders and for local highways.
The bill also makes the following fiscal and appropriation changes:
1. Creates a segregated fund appropriation from the local government aid fund
for the expenditure restraint program payments and repeals the general purpose
revenue appropriation for those payments. Under current law, a municipality is
eligible to receive an expenditure restraint payment if its property tax levy is greater
than five mills and if the annual increase in its municipal budget, subject to certain
exceptions, is less than the sum of factors based on inflation and the increased value
of property in the municipality as a result of new construction. The bill also provides
that in 2025, each municipality will receive an expenditure restraint program
payment that is equal to the payment received by the municipality in 2024.
2. Creates a segregated fund appropriation from the local government aid fund
for public utility aid payments to counties and municipalities and repeals the general
purpose revenue appropriation existing for those payments. Under current law,
counties and municipalities where power production plants, electric substations,
and general public utility structures are located receive public utility aid payments
based on a statutory formula.
3. Creates a segregated fund appropriation from the local government aid fund
for computer aid payments to taxing jurisdictions and repeals the general purpose
revenue appropriation existing for those payments. Under current law, computers
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ASSEMBLY BILL 256
and certain computer-related equipment are exempt from local personal property
taxes, and DOA makes computer aid payments to taxing jurisdictions to compensate
them for the corresponding loss of property tax revenue.
4. Creates a segregated fund appropriation from the local government aid fund
for exempt personal property aid payments to taxing jurisdictions and repeals the
general purpose revenue appropriation existing for those payments. Under current
law, machinery, tools, and patterns not used for manufacturing purposes are exempt
from local personal property taxes, and DOA makes exempt personal property aid
payments to taxing jurisdictions to compensate them for the corresponding loss of
property tax revenue. The bill also appropriates funds from the local government aid
fund to make aid payments to taxing jurisdictions during the 2024-25 fiscal year if
the personal property tax is repealed during the 2023-24 legislative session.
5. Creates a segregated fund appropriation from the local government aid fund
for video service provider fee aid payments to municipalities and repeals the general
purpose revenue appropriation existing for those payments. Under current law, the
state provides an aid payment to municipalities to compensate the municipalities for
a state-mandated reduction in the amount of video service provider franchise fees
that a municipality may impose and collect.
7. Repeals the appropriation from the police and fire protection fund that
provides funds for county and municipal aid payments.
8. Eliminates the general purpose revenue provided to local government units
through the Medical Assistance program for providing transportation for medical
care.
9. Transfers, beginning in the 2024-25 fiscal year, $8,000,000 from the local
government aid fund to the transportation fund in each fiscal year.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
1 SECTION 1. 16.5185 (3) of the statutes is created to read:
2 16.5185 (3) On December 30, 2024, and on each December 30 thereafter, the
3 secretary shall transfer from the local government aid fund to the transportation
4 fund $8,000,000.
5 SECTION 2. 16.5186 of the statutes is created to read:
6 16.5186 Transfers involving the local government aid fund. (1)
7 Beginning in fiscal year 2024-25, on the 2nd Monday in July in each fiscal year, the
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ASSEMBLY BILL 256 SECTION 2
1 secretary shall transfer from the general fund to the local government aid fund 15
2 percent of the amount specified under s. 25.491, and on the 2nd Monday in November
3 in each fiscal year, the secretary shall transfer from the general fund to the local
4 government aid fund 85 percent of the amount specified under s. 25.491.
5 (2) On June 30, 2025, and on each June 30 thereafter, the secretary shall
6 transfer the unencumbered balance of the local government aid fund in excess of 0.1
7 percent of the amounts deposited under s. 25.491 during that fiscal year, from the
8 local government aid fund to the general fund.
9 SECTION 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
10 the following amounts for the purposes indicated:
2023-24 2024-25
11 20.835 Shared revenue and tax relief
12 (1) SHARED REVENUE PAYMENTS
13 (x) State aid; video service provider
14 fee SEG A -0- 10,008,200
15 SECTION 4. 20.835 (1) (c) of the statutes is repealed.
16 SECTION 5. 20.835 (1) (db) of the statutes is repealed.
17 SECTION 6. 20.835 (1) (dm) of the statutes is repealed.
18 SECTION 7. 20.835 (1) (e) of the statutes is repealed.
19 SECTION 8. 20.835 (1) (f) of the statutes is repealed.
20 SECTION 9. 20.835 (1) (fa) of the statutes is repealed.
21 SECTION 10. 20.835 (1) (r) of the statutes is repealed.
22 SECTION 11. 20.835 (1) (s) of the statutes is created to read:
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ASSEMBLY BILL 256 SECTION 11
1 20.835 (1) (s) Expenditure restraint program. From the local government aid
2 fund, a sum sufficient to make the payments under s. 79.05 (3).
3 SECTION 12. 20.835 (1) (t) of the statutes is created to read:
4 20.835 (1) (t) County and municipal aid. From the local government aid fund,
5 a sum sufficient to make the payments under s. 79.035 (9).
6 SECTION 13. 20.835 (1) (u) of the statutes is created to read:
7 20.835 (1) (u) Public utility distribution account. From the local government
8 aid fund, a sum sufficient to make the payments under s. 79.04.
9 SECTION 14. 20.835 (1) (v) of the statutes is created to read:
10 20.835 (1) (v) State aid; computer aid payments. From the local government
11 aid fund, a sum sufficient to make the payments under s. 79.095.
12 SECTION 15. 20.835 (1) (w) of the statutes is created to read:
13 20.835 (1) (w) State aid; personal property tax exemption. From the local
14 government aid fund, a sum sufficient to make the payments under s. 79.096 and
15 2023 Wisconsin Act .... (this act), section 37 (1).
16 SECTION 16. 20.835 (1) (x) of the statutes is created to read:
17 20.835 (1) (x) State aid; video service provider fee. From the local government
18 aid fund, the amounts in the schedule to make the state aid payments under s.
19 79.097.
20 SECTION 17. 25.17 (1) (jf) of the statutes is created to read:
21 25.17 (1) (jf) Local government aid fund (s. 25.491);
22 SECTION 18. 25.491 of the statutes is created to read:
23 25.491 Local government aid fund. (1) There is established a separate
24 nonlapsible trust fund designated as the local government aid fund, to consist of the
25 following moneys transferred from the general fund:
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ASSEMBLY BILL 256 SECTION 18
1 (a) In fiscal year 2024-25, 20 percent of the amount of revenues received from
2 the taxes imposed under ss. 77.52 and 77.53 as specified for that fiscal year under
3 s. 20.005 (1) by the biennial budget act.
4 (b) In fiscal year 2025-26, and in each fiscal year thereafter, the sum of the
5 following:
6 1. The amount transferred from the general fund in the previous fiscal year.
7 2. The percentage change in the amount of revenues received from the taxes
8 imposed under ss. 77.52 and 77.53 for the current fiscal year from the previous fiscal
9 year, as specified for that fiscal year under s. 20.005 (1) by the biennial budget act
10 multiplied by the sum of the amounts credited to the accounts under subs. (2), (3),
11 (4), and (5) in the previous fiscal year.
12 (2) (a) There is established in the local government aid fund a separate account
13 that is designated the public utility distribution account. In fiscal year 2024-25, and
14 in each fiscal year thereafter, the sums specified in s. 79.04 shall be credited to this
15 account.
16 (b) Each fiscal year, the department of administration shall make payments
17 under this subsection before any other payments under this section. If the amount
18 remaining after making the payments under this subsection is not sufficient to make
19 the full payments under subs. (3), (4), and (5), the department of administration shall
20 make payments in proportion to the amount owed and the total remaining amount
21 available for distribution.
22 (3) There is established in the local government aid fund a separate account
23 that is designated the county and municipal base aid account. In fiscal year 2024-25,
24 the total amount of payments made in the previous fiscal year under s. 79.035 shall
25 be credited to this account. In fiscal year 2025-26, and in each fiscal year thereafter,
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1 an amount equal to the amount credited to this account in the previous fiscal year,
2 and subject to sub. (2) (b), increased by the percentage change in the amount of
3 revenues received from the taxes imposed under ss. 77.52 and 77.53 from the
4 previous fiscal year to the current fiscal year as determined under sub. (1), shall be
5 credited to this account.
6 (4) There is established in the local government aid fund a separate account
7 that is designated the per capita deficiency aid account to make the payments under
8 s. 79.035 (9) (b). The following amounts shall be credited to this account:
9 (a) In fiscal year 2024-25, for distribution to towns, $65,000,000. In fiscal year
10 2025-26, and in each fiscal year thereafter, an amount equal to the amount credited
11 to this account under this paragraph in the previous fiscal year, and subject to sub.
12 (2) (b), increased by the percentage change in the amount of revenues received from
13 the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal year to the
14 current fiscal year as determined under sub. (1), shall be credited to this account.
15 (b) In fiscal year 2024-25, for distribution to cities and villages, $75,000,000.
16 In fiscal year 2025-26, and in each fiscal year thereafter, an amount equal to the
17 amount credited to this account under this paragraph in the previous fiscal year, and
18 subject to sub. (2) (b), increased by the percentage change in the amount of revenues
19 received from the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal
20 year to the current fiscal year as determined under sub. (1), shall be credited to this
21 account.
22 (c) In fiscal year 2024-25, for distribution to counties, $57,500,000. In fiscal
23 year 2025-26, and in each fiscal year thereafter, an amount equal to the amount
24 credited to this account under this paragraph in the previous fiscal year, and subject
25 to sub. (2) (b), increased by the percentage change in the amount of revenues received
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1 from the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal year to the
2 current fiscal year as determined under sub. (1), shall be credited to this account.
3 (5) There is established in the local government aid fund a separate account
4 that is designated the additional county and municipal aid account to make the
5 payments under s. 79.035 (9) (c). In fiscal year 2024-25, and in each fiscal year
6 thereafter, an amount equal to 10 percent of the sum of the amounts credited to the
7 accounts under subs. (3) and (4) shall be credited to this account.
8 (6) There is established in the local government aid fund a separate account
9 that is designated the expenditure restraint program account to make the payments
10 under s. 79.05.
11 (7) There is established in the local government aid fund a separate account
12 that is designated “state aid; computers” to make the payments under s. 79.095.
13 (8) There is established in the local government aid fund a separate account
14