Public Policy Forum
Good News, Bad News
Wisconsin Property Values and Taxes
By Michael Theo
Good news: Property values in Wisconsin increased 9.1 percent in 2001, making real estate a great investment, even when the general economy isn't doing so well.
Bad news: Property tax levies in Wisconsin increased 7.2 percent, the second highest single years increase in a decade.
And so it goes with Wisconsin real estate values and taxes.
The latest analysis of real estate values and taxes in the state comes from a new report by the Wisconsin Taxpayers Alliance (WTA), a non-partisan research organization that reviews state government, tax and public finance issues.
According to the new WTA report, net property tax levies in 2001 totaled $6.6 billion, up 7.2 percent from 2000.
Technical colleges' levies increased the most (+9.7 percent), followed by counties (+7.9 percent), municipalities (+6.1 percent) and school districts (+4.9 percent).
While schools constituted the smallest percentage increase, they remain the greatest users of the property tax, levying some $3.1 billion in property taxes. Schools were followed by municipalities (i.e.: cities, villages and towns) who combined levied $1.7 billion in property taxes.
For more information, contact Michael Theo.
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We're Not Alone: All States Struggle with Budgets
How are other states dealing with their budget deficits?
By Michael Theo
The recently concluded state budget process was ugly - really ugly. That's because there are no good or easy choices when it comes to fixing a $1 billion-plus budget deficit. But in facing these tough choices, Wisconsin is not alone.
Forty-three other states also face budget shortfalls, caused in large part by the weak national economy. So what are the other states doing to balance their books? Here's what The National Council of State Legislatures
(NCSL) says:
- Sixteen states have raised taxes - totaling $6.7 billion in 2002. Contrast this with a total of $34.2 billion in total state tax cuts during the years 1995-2000.
- Eighteen states have increased cigarette taxes. In California, (where they face a daunting $24 billion deficit!), they are considering raising the cigarette tax another 87 cents to $3 per pack. That would bring the total cost of cigarettes in California to $7 per pack.
- Six states have extended tax-amnesty periods, allowing those who owe back taxes to pay up without paying penalties.
- Nineteen states have dipped into their "rainy day funds," (since it is in fact fiscally pouring out these days).
According to NCSL, most states have taken one-time actions, hoping to postpone tougher budget decisions until the economy recoveries begins to regenerate lost tax revenues.
Wisconsin was able to balance the books without raising taxes - at least this time around, and that's good. The question to ask gubernatorial and legislative candidates between now and November is can we continue to balance our books without tax increases?
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Can Ed Thompson Get Six Percent of the Vote?
by Joe Murray
For Libertarian gubernatorial candidate Ed Thompson, the September 10th primary election could make or break his chances of being a significant factor in the November election.
If Thompson can pick up 6% of the statewide vote on September 10th, he will qualify for a public funding grant of $206,000. This grant money would allow Thompson to spend more on radio and television to get his "reform" message out to voters. Without these funds, Thompson could very well find himself struggling in a Governor's race that will likely break all fundraising and spending records.
In the first six months of 2002, Thompson raised about $145,000, spending most of this money on travel costs and a small radio buy in selected markets around the state. Without a large media buy heading into the September 10th primary, reaching the grant qualifying 6% of the vote will be extremely difficult if history is any guide.
In the 1994 and 1998 Gubernatorial races, third-party candidates received only 0.2% of the total vote. Thompson obviously hopes his famous last name and reform message, along with the ongoing John Doe investigations inside the state Capitol, will propel him to the magic 6% threshold.
The other complicating factor for Libertarian Thompson is that voters who want to vote for him in the primary will have to vote on the Libertarian ballot. If they choose to vote for Thompson, they can't vote in any Democratic or Republican primaries. If voters cast a ballot in either the Democratic or Republican primary, and try to write-in Thompson on the same ballot, their vote won't count.
If Thompson's campaign can find a way to amass 6% of the vote on September 10th and get himself included in the fall debates between the two major party candidates for Governor, he could be a huge factor in November.
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Unconstitutional Campaign Finance Reform
by Joe Murray
As part of the recently passed state budget repair bill, the legislature passed a campaign finance reform proposal that legal experts contend is unconstitutional in several ways.
For example, one provision would require groups like the WRA to file a report prior to engaging in political communication with voters, which legal experts claim is "prior restraint" of free speech and thus unconstitutional.
Another provision would penalize a candidate who declines public funding for their campaign by severely limiting the amount of money political action committees and individual givers could contribute to their campaign. Constitutional experts argue this form of punishment to be overly "coercive," meaning those who do not "voluntarily" opt into the system will be penalized for rejecting public financing. Again, experts believe this to be another constitutional red flag.
The WRA, along with several other politically active groups, have filed a lawsuit against the state seeking to have the law struck down as an unconstitutional assault on free speech.
It's important to note that the WRA has supported, and will continue to support constitutional campaign finance reforms that do not favor one side over another and ensure the rights of groups and individuals to participate in elections.
As our lawsuit progresses, we will keep you posted.
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Wisconsin's Housing Market Outperforms Region and Nation
Wisconsin's housing market turned in another solid quarter, outperforming both the Midwest region and the nation in the second quarter with home sales 5.6 percent above last year.
Based on seasonally adjusted sales provided by the NAR, Wisconsin's seasonally adjusted total for the quarter was 26,875 homes sold. State home sales grew at more than twice that of the Midwest region, which grew 2.7 percent over the same period last year, and also beat the national sales growth, which was 4.4 percent compared to the second quarter last year.
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