State Revenue Cuts Not as Bad as Others

The state’s Legislative Fiscal Bureau released figures Wednesday that estimate the amount of reductions for communities for the upcoming fiscal year.

Overall, the nonpartisan organization that aids the state with financial information found that county and municipal aid will decrease by $96 million statewide in 2012, an 11.6 percent reduction from 2011. For Port Washington and Saukville, this means significant cuts in shared revenue.  

Port Washington will see its $580,757 in aid cut to $443,303, according to the bureau’s estimates.  This is a 23 percent drop from 2011 to 2012. Saukville is predicted to see a 13.6 percent decline in aid from the state.  In 2012, the bureau expects the village to take in $331,325 in aid compared to the $383,598 it received for 2011.

Dramatic cuts are also expected for the county.  State aid will be halved for Ozaukee County, from $187,342 to $93,671.  This 50 percent cut is the greatest allowed within the budget’s maximum reduction limits.

These limits are determined by complex equations put forth in the proposed budget, and are based on a community’s population and property values.

Also reduced is general transporation aid — 15 percent each for the city of Port Washington and the village of Saukville. That equates to about $103,000 for Port Washington and about $55,000 for Saukville.

Offsetting those cuts to some degree in Port Washington will be pension contributions by public employees.

Under the newly passed 2011 Wisconsin Act 10, Wisconsin Retirement System employers are no longer required to pay all or part of a public employee’s retirement contributions in order to save money.

Under the act, most participants in the plan would need to put forth half of the required retirement fund amounts.  For most employees this would be 5.8 percent of their earnings.  Those in elected and executive positions would put forth 6.65 percent.

According to the bureau’s estimates based on 2009 payroll data (the most recent available), Port Washington could save $271,100 under the changes — just more than the approxmately $240,000 it will lose in reduced aid.

There was no data for Saukville as the village is not a participant in the WRS.

These numbers are not a surprise for local leaders.  Both Port Washington Mayor Scott Huebner and Saukville Village President Barb Dickmann knew that there would come a time where municipal aid would be decreased.

Since the figures presented by the LFB are still to be debated in the legislature, the numbers may change.  

“Hopefully the legislature can approve the budget early enough this year in order to allow local governments time to work on their budgets and examine all the ramifications accordingly,” Huebner said.  

In the meantime, Port Washington may have to tighten its budget and look for different areas of relief; however the mayor is not overly concerned.

“The number is a bit higher than I anticipated but not unmanageable,” Huebner said.  

Dickmann echoed a similar sentiment, saying that through cooperation and planning she hopes to meet the challenges of a tightened budget.

“My goal has always been to give the taxpayers the best bang for their buck,” Dickmann said.  “Now we’ll have less bucks to work with.”