New Budget Summary Shows that State Budget Includes only Token Increases for Local Aid
By including only token increases in local aid, the state budget could lead to cutbacks in local services or further reductions in employee compensation, according to a new budget summary from the Wisconsin Budget Project.
Under the budget, state support for aid to local governments would be frozen or nearly so, according to the summary. This freeze comes after several years of steady decreases in state spending for local assistance.
The budget, which is on the verge of final approval today, makes the following changes to local aid amounts over the two-year budget period:
- Wisconsin Technical College System: +1.6%;
- General transportation aid: +0.5%;
- Mass transit: +0.5%;
- Direct aid to counties and municipalities: +0.4%;
- Funding for juvenile justice services provided by counties: no change;
- Children and Family Aids to counties for services related to child abuse: -1.0%
- Community Aids for counties: no change in the state share.
This budget continues strict controls on the amount of property taxes that local governments are able to raise. Under this proposal, counties, municipalities, and technical colleges must limit any increase in their levy to the growth in property values due to new construction.
The flat funding for local governments included in this budget, combined with tight limits on property tax levies, means that the growth in local government spending will be outpaced by inflation.