Board Seeks Repeal of Restrictions in Sales Tax Deal

Milwaukee County Courthouse. Photo by Graham Kilmer.

Milwaukee County supervisors want to repeal a number of provisions in the state legislation giving the county authority for the new sales tax adopted in 2023.

The legislation — Wisconsin Act 12 — reformulated state shared-revenue support for local governments and also provided the City of Milwaukee and Milwaukee County with the authority to levy new sales taxes, but also erased local authority over a number of policy matters.

Both local governments in Milwaukee faced dire budget projections driven by unmanageable pension costs and years of reductions in funding by the state Legislature. The legislation provided new sales tax revenue to manage pension costs and allowed the governments to shift new employees onto the state pension system.

Milwaukee County was authorized to levy a new 0.4% sales tax and put its dysfunctional pension system on a path to closure. Disastrous pension deals passed in 2000 and 2001 have cost the county well in excess of $1 billion.

In exchange for providing the local governments with a budgetary lifeline, the Republican-controlled Legislature tacked a number of provisions on the legislation, placing new restrictions and requirements on the governments. Most controversially, the bill stripped policymaking authority from the city’s Fire and Police Commission, set minimum staffing levels for police officers and required police officers in Milwaukee Public Schools.

A new bill being circulated in the Legislature would repeal these pieces of Act 12. They would also eliminate some of the restrictions placed on county government, which is of interest to county supervisors.

Sup. Justin Bielinski, who also works as communications director for State Sen. Chris Larson, sponsored a resolution supporting the bill, telling his colleagues on the Intergovernmental Relations Committee Monday, “The legislature doesn’t do things to help Milwaukee without being asked, and so I wanted to make sure that as a board we were supporting their efforts and asking them to continue to have this legislation in their minds.”

Bielinski said the legislation has already picked up more than 30 co-sponsors.

Some county-focused provisions that would be repealed include a limit on cultural spending, conditions on the county’s shared revenue payments, requirements to prepare unused county buildings for sale and report them to the Legislature and another requirement that the county report to the Legislature how it budgets the revenue from the 0.4% sales tax. It would also eliminate a provision requiring a two-thirds vote of the county board anytime it seeks to spend money on a new program or create a new position. These requirements are unique to Milwaukee County rather than being required of all 72 county governments in the state.

The Committee on Intergovernmental Relations unanimously passed the resolution Monday. It will go before the full board later this month for a final approval. If the board passes the resolution, the county’s government affairs will share it with elected officials at the state level.

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