TEST TW WEATHER

June 12, 2009 State Budget Bill AB75 Update; June 12

The following are some of the key provisions that affect local
governments in Wisconsin in the State Budget Bill AB 75 as amended by
the State Assembly on early Saturday morning June 12, 2009 on a party
line vote of 49 Democrats and one Independent for passage as amended
and 48 Republicans against. The Budget Bill is be acted upon in the
State Senate the week of June 15^th , with likely Senate floor action
on Wednesday or Thursday of this week. It is expected that the State
Senate vote will also be on party lines.

1. *Joint and Several Liability provisions.* The State Assembly
deleted the Governor’s and Joint Finance provisions to modify the
current “joint and several liability” provisions in AB 75.
Wisconsin Towns Association (WTA) supports the deletion of these
provisions. However, there are rumors that the State Senate may
include the Joint Finance Committee (JFC) version or even modify the
JFC provisions to something new. WTA asks town and village officers to
keep calling their State Senators to delete this provision from the
state budget.

2. *Prevailing Wage threshold.* The State Assembly did not change the
threshold for when the prevailing wage law applies to public works
construction projects. The JFC committee had raised the threshold from
the Governor’s proposal of $2,000 to $25,000. WTA has been seeking if
current prevailing wage law is to be changed to set the threshold at
$100,000 without annual indexing. (The current threshold for when the
law applies is $234,000 multi-trade and $48,000 for single trade
projects.) While some State Senators have expressed concerns that the
$25,000 threshold is too low, the JFC threshold of $25,000 may remain.
WTA asks town and village
officers to call their State Senators and push for $100,000 as a
minimum threshold.

3. *Levy Limits.* The State Assembly did not modify the levy limits
for local governments as proposed by the JFC. The JFC did modify the
Governor’s original proposal to offer some flexibility in limited
circumstances, but the JFC version basically provides that levy limits
for local governments would be limited to 3% increases
each year for the next two years.

4. *General Transportation Aids (GTA)—-Per Mile Minimum*. The State
Assembly did not modify the JFC version of the budget bill thus
leaving the per mile minimum at $2,055 per mile in 2010 and $2,117 per
mile in 2011 and thereafter. This is a two percent increase first year
and three per cent increase second year, as opposed to
a one percent cut to $1,095 that the Governor originally proposed in
the original state budget bill. The two percent and three percent
increase are the same as the mass transit operating
assistance is increased in the state budget bill.

5. *Share Revenue Cuts*—aka Municipal Aid. The JFC increased the total
cuts in Municipal Aid from the 1% under the Governor’s original budget
bill to 3.5% in total. The Governor’s original
budget bill capped any one municipality at not more than a 15% cut in
2010 from the 2009 payment. The State Assembly did not modify anything
in the shared revenue cuts or cap. The Legislative Fiscal Bureau has
provided a projected printout for all towns, villages, cities and
counties at their website at the following location:

http://www.legis.state.wi.us/lfb/Misc/2009_06_09_municipal%20aid%20payments.pdf
(According to this document the Town of Ashford would receive a 15%
cut).

6. *Solid Waste Tipping Fee Increases*. The JFC increased the total of
solid waste tipping fees from the current $5.90 per ton to $13.00 per
ton. A portion of these increases will take effect as
of July 1, 2009 (in this current fiscal year) and the balance on
October 1, 2009 (also in this current fiscal year). WTA has been
seeking at a minimum if the tipping fees can not be reduced under the
budget bill to at least delay the effective date until January 1,
2010. (if this passes this will affect the Town of Ashford budget for
2009. We do have a contract with Veolia but that contract states
increased tipping fees can be passed on immediately).

7. *Stewardship Lands Hunting Limitations*. The JFC removed a
provision under the Stewardship Program that was adopted about two
years ago to prohibit local governments from limiting hunting on all
public lands purchased under the Stewardship Program. The State
Assembly has modified the JFC version and would basically
return to current law, but would allow DNR Board approval under
certain circumstances for prohibiting hunting on lands purchased
under the Stewardship Program (for such things as public safety).

8. *Regional Transportation Authorities*. The State Assembly has
modified the JFC provisions which created Regional Transportation
Authorities (RTAs) in Milwaukee and Dane County. In addition the State
Assembly authorized the creation of RTAs in the Fox Valley and
Chippewa Valley (which includes Eau Claire and Chippewa
Counties and municipalities, including towns).

9. *Working Lands*. The State Assembly modified the “Working Lands
Initiative” (which revises the farmland preservation program; creates
Ag Enterprise Areas (AEAs); and creates a Purchase of
Agricultural Conservation Easements (PACE) by limiting the amount a
local government can impose as a “conversion fee” for taking ag land
zoned under exclusive ag zoning to one times the amount of the use
value per acre. Note this penalty is in addition to the three times
the use value per acre conversion fee that will be paid to the state
to assist in funding the PACE program. WTA has supported the “Working
Lands Initiative.”

10. *Clean Sweep Restoration. *The JFC restore the Clean Sweep program
but only funded the program with $750,000 (which was previously
funded at $2.0 million per year). WTA supports the restoration of the
Clean Sweep program albeit with limited funds.