Senate Democrats Pass their Own Version of State Budget

SOURCE: League of Wisconsin Municipalities

The Senate passed its own version of the state budget last Wednesday on a 17-16 vote. The Senate version differs significantly in some areas from the Assembly's. The Senate, like the Assembly before it, used as its base the Joint Committee on Finance's version of the state budget. The Senate made several dozen changes to the Joint Committee on Finance's version, including the following:

Expenditure Restraint Program Budget Test - Establishes a CPI floor of 3% under the Expenditure Restraint Program's spending limits.
Maintenance of Effort for Police and Fire Protection Services - Clarifies that the new maintenance of effort requirement for police and fire protection services inserted into the budget by the JFC does not apply to capital expenditures or one time expenses.
Municipal and County Recycling Grant Program Funding Level - Increases funding for the municipal and county recycling grant program by $2.5 million annually. This would provide a total of $31.6 million in 2009-10 and $32.6 in 2010-11. (The program is currently funded at $31 million, but $3.1 million was transferred to the general fund as part of the current budget deficit efforts.)
Property Tax Exemption for Retirement Homes for the Aged - Reduces the threshold for distinguishing between taxable and exempt dwelling units within retirement homes for the aged from 160% to 100% of the average equalized value of residential parcels within the county; deletes provision requiring assessors to exclude common areas when assessing value of individual units; and restores requirement that retirement homes must be owned by benevolent associations to qualify for the exemption.
Definition of Agricultural Land for Property Tax Purposes - Modifies the definition of agricultural land for purposes of property taxation to exclude any land that is platted or zoned for residential, commercial, or industrial use.
Police and Fire Protection Fee – Sunset - Sunsets the police and fire telephone surcharge on June 30, 2011. Creates a 911 equipment upgrade telephone surcharge effective July 1, 2011.
One-Year Extension of TIF Districts for Affordable Housing Purposes - Allows municipalities to extend the life of a TIF district for one year after paying off its project costs. 75% of any tax increments received during the extension must be used to benefit affordable housing in the municipality. The remainder must be used to improve the municipality's housing stock.
Modifications to Prevailing Wage Provisions - Clarifies that the prevailing wage requirements do not apply to "minor service and maintenance work," which is defined to include minor crack filling, chip or slurry sealing or other minor pavement patching, not including overlays. Makes several other technical modifications, including defining "direct financial assistance" for publicly funded private construction projects as moneys in the form of a grant or other arrangement that a municipality directly provides to assist in the erection, construction, repair, remodeling, demolition, or improvement of a private facility.
Broader Definition of Public Contract Subject to Competitive Bidding - Expands definition of municipal "public contract" for purposes of determining when public works contracts are subject to competitive bidding requirements. The new definition includes contracts for demolition, grading, alteration, painting, or decorating, as well as construction, repair, and remodeling, which are included under current law.
Chequamegon Bay Regional Transit Authority - Enables Ashland and Bayfield counties to create a regional transit authority with taxing powers.
Allowing Additional Municipal Liquor Licenses in Capital Improvement Areas. Creates statutory provisions allowing the issuance of additional "Class B" liquor licenses to qualified applicants located in capital improvement areas designated by the Legislature. Designates TIF District No. 3 in Oconomowoc as the first capital improvement area in the state.