FoxPolitics.net - Appleton, WI News - What's really going on in the Fox Cities

FoxPolitics.net Blogs

FoxPolitics News

Local/State Govt Links

Salaries

• Appleton School District, 2007-08
• City of Appleton
• Town of Grand Chute
• City of Menasha
• City of Neenah

Candidates

City of Appleton

• Elected Officials
• Salary Watch
• Directory
• Mtg. Agendas/Minutes

Advisory Board

Blogroll

Selected News Sources:
Business Jrnl of Milw
Christian Science Monitor
Daily Caller
Drudge Report
La Crosse Tribune
Milw Journal Sentinel
National Journal
New York Times
Public Policy Forum
Real Clear Politics
Stateline
The Hill
TPM
Washington Examiner
Washington Post
Washington Times
WI State Journal
Selected Blogs - from the Right:
American Mind
Blaska's Blog
Boots & Sabers
Charlie Sykes
Dad29
Freedom Eden
Heritage Foundation
Jerry Bader Blog
Life Voice
Marketplace of Ideas
Marquette Warrior
Natl Review Online
No Runny Eggs
Patrick McIlheran
Real Debate Wisconson
RedState
Rhymes with Clown
Shark and Shepherd
The Lote Tree
Vox Populi
Wall Street Jrnl, Opinions
WI State Jrnl, Opinion
Wigderson Library & Pub
Wisconsin Family Voice
WPRI
Selected Blogs - from the Left:
Big Money Blog
Blogging Blue
Brenda Konkel
Caffeinated Politics
Capital Times
FightingBob
Folkbum's rambles
Griper Blade
Huffington Post
Lost Albatross
MAL Contends
Mid coast views
Moneyed Politicians
One Wisconsin Now
Open Left
Playground Politics
Political Environment
Rock Netroots
Talk to Tony
Uppity Wisconsin
Waxing America

Today's Blog: Time for the Guv to morph into Chris Christie
My husband and I and a couple hundred friends watched in Green Bay as ...(more)

Search Archives

Blogs

Time for the Guv to morph into Chris Christie (6/28/2011)

Time for Gov. Walker to talk more about the cake (3/4/2011)

Today, reality hits home (3/1/2011)

FoxPolitics News going on hiatus (1/28/2011)

Brown County Executive candidate forum Feb. 8 (1/28/2011)

Education done right (1/27/2011)

To Obama, the ‘We’ is Government (1/27/2011)

(more)

2/22/2010
Sheboygan close to implementing new sales tax

I’ve referred to Sheboygan County numerous times in this space – most often for responsible fiscal management that goes on around there. I raved about their Program Evaluation and Prioritization Committee (PEPC – say “Pepsi”) process that evaluated and prioritized services and programs based on, believe it or not – a program’s effectiveness! Imagine that. (Here’s a more recent report, this time the Evaluation and Prioritization of only discretionary programs in the county.

At the same time, I talked about Winnebago County Exec. Mark Harris’ attempt to impose a .5% county sales tax.

A gaggle of counties here in the northeast huddle together without the added sales tax - almost with a pact. He who goes first will bring down the rest. So far residents and businesses have successfully fought the county sales tax in Kewaunee, Manitowoc, Sheboygan, Brown, Outagamie, Calumet, Winnebago and Fond du Lac counties.

Well, rescuing Mercury Marine last year brought a sales tax to Fond du Lac County. So much for the gaggle.

The next to stray looks to be Sheboygan County. And perhaps next might be any of our counties mentioned above…

Sheboygan County has only recently bragged about its reduction of the total property tax levy three years in a row, the result primarily of extra money left over due to the County selling one of its three nursing homes – and running the remaining nursing homes more fiscally responsibly.

So much for no tax increases.

The Sheboygan County Finance Committee passed a new .5% sales tax. The proposed ordinance and referred the ordinance to the Executive Committee; it will be considered at the Committee meeting this Wednesday Tuesday, February 23 at 5:00 PM in Room 302 of the Administration Building (508 New York Ave.). A majority vote of the Executive Committee will move the sales tax ordinance to a vote of the full County Board at its meeting March 16.

How can a county can reduce its tax levy 3 years in a row and now all of a sudden, need to raise almost $9 million a year with a new tax? County Exec. Administrator Adam Payne believes the state has simply pushed too hard. “I resent one level of government that creates a program but then doesn’t have the courage to say how the program will be funded – and passes it on to a lower level of government.” As Payne declared, the state essentially says “you figure it out.”

In his defense, Payne warmed all of us about this “Doyle bait-and-switch” business in a statement before the Joint Finance Committee about a year ago.

The State mandates the programs, does not meet its commitments, in many instances either reduces or holds flat funding, takes more of the revenue the County collects than it allows us to keep, and then seeks to divert responsibility and attention from itself and points the finger at local government for high property taxes.

Read more here. It’s good stuff, lays it on the line.

When Outagamie County last year was toying with a county sales tax, I shared the well-documented fact that a county sales tax does not as statutes require, reduce property taxes, but rather is used as an additional source of revenue.

State law requires a county sales tax to be used "only for the purpose of directly reducing the property tax levy," but new research [June, 2002] from the Wisconsin Taxpayers Alliance (WISTAX) finds that only six of 49 counties studied did so. The nonpartisan, nonprofit research group found that property tax relief was "unlikely" in another 21 counties.

…. Overall, WISTAX found that, on average, 28.3% of Wisconsin county sales tax revenue is used to reduce property taxes.

…WISTAX President Todd Berry noted that "these findings suggest some reason for caution in assuming that further local-option taxes, if created, would reduce the property tax."

Payne argues the county has been creative as possible in contract negotiations….

Certainly 100% of Sheboygan’s new $9M sales tax revenue isn’t intended to reduce property taxes. That’s not saying Payne and the Board’s Finance Committee don’t have eyes on spending it. According to Payne:

First, dollars would “help maintain current programs and services.” [about $3.5 million, as I calculate it.]
$500,000 would go toward “job creation and economic development.”
$1 million would be used to “address highway infrastructure”
$4 million annually will replace borrowing, looking to be debt free in 10 years and ultimately saving “more than $5 million in interest payments alone.” [That’s $5M saved in 10 years – after almost $100M in new taxes.]

I’m not sure I buy it. Sheboygan County, it’s time to speak up.

Jo Egelhoff, FoxPolitics.net

COMMENTS

Jo:
I think you will see more and more of the counties having to grapple with the fact that the state will be cutting the shared revenue for the counties, if not in the current budget cylce, most certainly in the next budget cycle as Federal stimulus dollars are gone.
At least Sheboygan went through the extensive process of prioritizing their needs in case significant cuts were necessary.
Outagamie County has not gone thru this process and that will make it more difficult to address the problem when you have not had the discussion on priorities. Counties will be tempted to "drink the Kool-Aid" and take the easy way out with a sales tax.
More and more of the programs you see in County government are mandated without the proper funding which leaves little wiggle room to cut elsewhere.
Wages, salaries, and benefits are an area that needs to be addressed before we leap into the sales tax pool.
It will be an interesting next several years and will require leadership to address these problems and suggest viable solutions. The days of "slam dunk" budgets are over for all of us.
Mike

Mike Thomas (Mon Feb 22 10:12:46 2010)

I take great interest in the proposal of Sheboygan County sales tax proposal. A clarification to start. Adam Payne is not Sheboygan County Executive. He is the APPOINTED COUNTY ADMINISTRATOR of which the public has no direct control of his proposals nor an ability to hold him accountable. Mr. Payne used his title of President of the County Administrator-Executives to endorse Mark Harris without the permission of the organization of which Harris is president of now. A lack of ethics in doing so? As Harris proposed a sales tax 2 times for Winnebago County.

It is an erratic source of tax revenue to rely on, in addition it is regressive in nature hurting the poor at a greater percentage then everyone else. The revenue can vary from year to year between 13 million and 9 million dollars.

The 2011 budget for Winnebago County may surely hit the levy limit because there has been little if any management of costs for the county in the last 5 years which in 2011 will be the day of reckoning. In a boom year the Winnebaqo County could receive 13 million, does anyone think that they wouldn't spend that 13 million? Then in a lean year of 9 million what would the county do? Lay off people cut services drastically.There is even a proposal in the legislature to exempt counties with no sales tax from the levy limits. Absurd.

If Mr. Payne wants to sell his scheme to the public then why not call his bluff and put words in the resolution stating that it MUST be used for debt reduction to be debt free in 10 years! If this isn't used for this purpose then a 3/4 vote of the county board must be needed and the approval from the public in a referendum to change its purpose. Better yet if it is such as good proposal then put it on as a referendum question in November: Shall Sheboygan County institute a sales tax generating 9 million in tax revenue" I am sure if it is as good as Mr. Payne states then he will be able to convine the electorate of its merits. As President Reagan once said "The government needs a straight jacket and the people need a life jacket!"

Jay Schroeder (Mon Feb 22 11:04:37 2010)

Post a Reply

Print this Article

Email Article to a Friend