#08 Possible action on proposed letter regarding the State budget bill.
CITY MANAGER’S MEMORANDUM
May 4, 2011
TO: City Council
FROM:Eric Levitt, City Manager
SUBJECT: Review and Approval of Letter to Joint Finance Committee concerning
State Budget bill, AB40/SB27
Request
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At the study session on April 27, the Council asked that a letter be prepared for
submittal to the Joint Finance Committee regarding the proposed changes for the
state’s next biennium budget.
Please find attached a draft letter for the Council’s review. Should this letter be
approved, I would ask Council President Brunner sign the letter on behalf of the City
Council.
Recommendation
The City Manager recommends approval of this letter.
Suggested Motion
I move to approve the letter to the Joint Finance Committee concerning State Budget
bill, AB40/SB27.
Background
After reviewing information from the Legislative Fiscal Bureau’s analysis on the total
Janesville is expected to receive a five percent
impact of the State Aid reductions,
reduction in state aids
for the next biennial budget. This is the third highest reduction
in the state; only two other municipalities in the state will receive larger percentage
reductions (Kiel (6%), and Manitowoc (5.5%)).
This letter outlines our concerns regarding cuts to recycling grants and general
transportation aids; proposed cuts for our public bus system; and our concerns with the
formula used to determine state aid cuts. This letter also shares our support for several
provisions, including amended proposed modifications to the phosphorus rules;
increase in funding for exempt computer aid payment; and maintenance of funding for
the Expenditure Restraint Program.
May 9, 2011
Joint Committee on Finance, Wisconsin State Legislature
Senator Alberta Darling, Co-Chair Representative Robin Vos, Co-Chair
Senator Luther Olsen Representative Dan Meyer
Senator Sheila Harsdorf Representative Dan LeMahieu
Senator Joe Leibham Representative John Nygren
Senator Glenn Grothman Representative Pat Strachota
Senator Randy Hopper Representative Joel Kleefisch
Senator Lena Taylor Representative Tamara Grigsby
Senator Robert Jauch Representative Jennifer Shilling
RE: State Budget bill, AB40/SB27.
Dear Senators and Representatives:
On behalf of the City of Janesville, the City Council offers the following comments on the
State budget bill. We understand the difficult task the Joint Committee on Finance is
undertaking for the next biennial budget and support several provisions in the budget
including the amended proposed modifications to the phosphorus rules, increase in funding
for exempt computer aid payment, and maintenance of funding for the Expenditure
Restraint Program, which has proven to be a successful program in past years.
However, we have a few areas in which we wish to express concern and request the Joint
Finance Committee consider changes in the budget bill. According to a report from the
Legislative Fiscal Bureau (LFB) dated May 2, 2011, the City of Janesville is the third hardest
hit city in the State by the changes proposed in the biennial budget. The LFB report
indicates that total state aid for Janesville under the proposed budget will decline by 5% as
a percentage of the 2010/2011 taxes plus aid payments. Whereas, the average decline for
all 193 cities on the list is only 3.0%. This comes on the heels of the worst economic
downturn in memory which saw the closure of the General Motors assembly plant in
Janesville.
In response to the closing, the City Council has become very concerned over the last
several years about increasing property taxes, and has limited the increases well below the
levy limit due to this concern over the last several years. This substantial cut proposed in
the biennial budget will create a very negative impact on our community.
Recycling Grants
The recycling grants have traditionally been funded through landfill tipping fees that have
gone into a trust fund. These recycling grants are important to Janesville and its residents
in maintaining curbside collection of recyclables. We understand there have been concerns
from some members of the Joint Committee on Finance on the reduction of this funding.
We strongly support the continuation of this program.
General Transportation Aids
The budget would reduce transportation aids to the City of Janesville by $349,000. We
support the Urban Alliance’s position requesting you consider reducing or eliminating the
cut to the general transportation aids program. We additionally urge you to retain the 5%
ceiling on the maximum reduction in GTA cuts a community can receive.
Transit Funding
The proposed budget both contains 10% public transit funding cuts, as well as potentially
moving public transit from the Transportation Fund to the General Fund. This could
potentially damage the ability for Janesville to operate its public transit system and likely
other municipal transit systems would experience the same impact. We believe these cuts
to public transit would greatly hurt the community, and disproportionately hurt the elderly,
disabled, and lower income families. We respectfully request the Joint Finance Committee
place public transit funding back into the Transportation Fund.
Reduction in State Shared Revenues
We understand State Share Revenues need to be reduced due to the fiscal challenges
meeting the State and support the notion that everyone should share in the burden. Our
concern is specifically that Janesville appears to be disproportionately impacted due to the
formula calculation.
We request that you evaluate the formula, and look at whether anything can be done to
mitigate our unique situation.
We thank you for your attention on these issues. Should you wish to discuss any of these
topics, please don’t hesitate to contact our City Manager, Eric Levitt, at 608-755-3177 or
levitte@ci.janesville.wi.us.
Sincerely,
George Brunner, City Council President
CC: Janesville City Council