WTA Position on State Aid Payments

Adjust state aid distribution formulas to direct more
assistance to communities with the greatest financial need

State government distributed over $1.4 billion to towns, villages and cities through various aid formulas in 2004. But of this total, cities alone got over $1 billion. That works out to $344 per city resident. Towns received less than $224 million, or about $133 per capita. The central goals of this largest state aid program (shared revenues) are to (1) reduce property taxes and (2) to support public services. The program's distribution formula is "means-tested" to direct relatively more aid to communities with the greatest need. But special features of the law dilute this "equalizing" capacity of the formula.

1) Help Small Communities: WTA supports higher aid payments for Wisconsin's smallest communities. One way to accomplish this is to increase funding of the Small Municipality Shared Revenue program.

2) Allow Formulas to Work: State aid distribution formulas are "means tested" to give relatively more help to the poorest communities; yet wealthy communities receive "hold harmless" payments that guarantee 95% of the prior year's payment level (this money is diverted from the poorest communities); WTA supports changing this to a 90% hold harmless.

3) Reward Responsible Land Use: Farmland, redeveloped brownfields and similarly responsible land uses should be made economically competitive through tax benefits and other fiscal incentives.

4) Promote Functional Consolidation: State aid formulas should encourage stronger intergovernmental cooperation, which can promote better services and cost savings, while also retaining local accountability.

WTA Position on Functional Consolidation
WTA Position on Annexation
WTA Position on Land Use
WTA Position on Transportation
WTA Position on Home Rule
Do Towns Pay a Fair Share of the Property Tax Burden?