% STEVEN POTTER.
% >> THE ACE OF STATE BUDGET
% NUMBER CRUNCHING HAS SEEN HIS
% SHARE O OF CAPITOL TURMOIL IS BB
% LANG.
% HE GUIDES BUDGET WRITERS THROUGH
% THEIR NUMBERS AND ATTACHES
% FISCAL NOTES TO LEGISLATIVE
% BILLS WHICH UNDERSELLS BY A LOT
% HIS ROLE.
% IT'S A NON-PARTISAN POSITION IN
% A VERY PARTISAN WORLD, BUT IT
% ALSO TAKES EXTREME FINANCIAL
% SAVVY AND EXPERTISE.
% WE TURN TO BOB LANG FOR THAT.
% THANK YOU FOR BEING WITH US.
% >> THANK YOU.
% >> SO WE WERE JUST OFF REPORTING
% ABOUT THIS DEAL HATCHED FOR THE
% SHARED REVENUE PACKAGE.
% WHY WOULD BUDGET NEGOTIATIONS
% HAVE HAD TO WAIT FOR THAT BILL
% TO BE HASHED BEFORE PROCEEDING?
% >> WE SORT OF HAVE TWO TRACKS
% GOING ON.
% THE SHARED REVENUE IS REALLY
% TRACK ONE.
% IT STARTED PRIOR TO THE BUDGET
% EVEN BEING INTRODUCED S. THERE'S
% AN INTEREST ON THE PART OF THE
% GOVERNOR AND AN INTEREST ON THE
% PART OF THE LEGISLATORS TO
% DEDICATE A PORTION OF THE STATE
% SALES TAX TO LOCAL GOVERNMENTS
% IN THIS PROGRAM WE CALL SHARED
% REVENUE.
% IT'S VERY BRIEF BACKGROUND.
% THE STATE ENACTED THE FIRST
% INCOME TAX IN THE COUNTRY IN
% 1911.%AT THAT TIME, THE STAT
E
% PROHIBITED LOCAL GOVERNMENTS
% FROM HAVING A LOCAL INCOME TAX
% BUT PLEDGED IN 1911 THAT THE
% STATE WOULD SHARE ITS REVENUES
% WITH LOCAL GOVERNMENTS.
% HENCE, THE SHARED REVENUE
% PROGRAM THAT IS BEING THERE
% FOREVER.
% -- THAT HAS BEEN THERE FOREVER,
% AND MUCH OF THE TIME IT WAS
% THERE, IT ACTUALLY WAS TAKING
% PORTIONS OF SALES TAXES AND
% OTHER TAXES AND DEDICATING THEM
% TO LOCAL AIDS, LOCAL.GOV NANCES,
% TOWNS, COUNTIES.
% SO FOR THE LAST 20 YEARS OR SO,
% THERE'S REALLY BEEN NO INCREASE
% IN SHARED REVENUE PAYMENTS TO
% LOCAL GOVERNMENTS.
% WE'VE GHOSN OFF THE FORMULAS AND
% THEY'VE BEEN BASICALLY QUITE
% FLAT AND SO GOVERNOR AND
% LEGISLATURE BOTH FELT WE SHOULD
% DEDICATE A PORTION OF SALES
% TAXES.
% ABOUT A BILLION 500 MILLION A
% YEAR.%WE WOULD DEDICATE TO L
OCAL
% GOVERNMENTS FOR A NUMBER OF
% LOCAL GOVERNMENT PROGRAMS.
% ONE OF THEM BEING THE SHARED
% REVENUE FORMULA.
% AND SO THAT BILL HAD ANOTHER
% MAJOR COMPONENT AND THAT WAS TO
% ATTEMPT TO ASSIST THE CITY AND
% THE COUNTY OF MILWAUKEE, BECAUSE
% THEY'RE DEALING WITH SOME
% SERIOUS FISCAL ISSUES THERE.
% SO THE TWO MAIN ELEMENTS WERE
% THE AMOUNT OF MONEY GIVEN BACK
% TO LOCAL GOVERNMENTS AND WAYS TO
% ADDRESS MILWAUKEE'S SITUATION,
% BOTH IN THE COUNTY AND IN THE
% CITY.%AND IT WAS A SEPARATE
TRACK.
% NOW THE BUDGET BEGAN, BUDGET
% CAME IN FEBRUARY 15th.
% JOINT COMMITTEE ON FINANCE HAS
% BEEN WORKING ON IT REALLY SINCE
% THEN.
% WE'RE VERY SERIOUSLY WORKING ON
% IT NOW.
% HOPE TO FINISH BY JULY 1.
% BUT IT WAS SORT OF A 2-TRACK
% PROCESS AND THEY BECAME SORT OF
% INTERTWINED A DAY OR TWO AGO.
% >> THAT'S RIGHT, INTERTWINED
% BECAUSE THEY ALSO ANNOUNCED THE
% K THROUGH 12 OF FUNDING PACKETS
% KIND OF AT THE SAME TIME.
% >> RIGHT.
% >> HOW COMPLICATED ARE FITTING
% ALL OF THESE PIECES TOGETHER IN
% A SPENDING BILL THIS BIG WITH SO
% MANY MOVING PARTS?
% >> WELL, TEA IT'S NOT A SIMPLE .
% WHEN WE HAVE TWO BICIALTION THE
% MONEY WILL BE -- BILLS, THE
% MONEY WILL BE IN ONE BILL.
% ANOTHER BILL WILL BE ASPECTS
% THAT WILL REQUIRE MONEY IN THE
% SECOND BILL, AND SO WE'RE SORT
% OF NAVIGATING OURSELVES THROUGH
% THIS SORT OF 2-STEP PROCESS.
% >> YOU JUST SAID THAT BECAUSE
% THINGS ARE NOW KIND OF MOVING,
% UNCLOGGED, THEY'RE MIGHT HAVE MG
% QUICKLY, YOU THINK THAT THE WORK
% WILL BE COMPLETED BY JULY 1.
% THAT IS THE START OF THE NEW
% FISCAL --%>> I THINK THE LEG
ISLATURE IS
% VERY SET ON PASSING THE BILL
% THROUGH THE FINANCE COMMITTEE
% AND BOTH HOUSES OF THE
% LEGISLATURE BY JULY 1, AND
% THEY'RE ON TARGET TO DO SO.
% >> SO AS TO THIS BIENNIAL
% BUDGET, BY ANY MEASURE, IT COULD
% BE REGARDED AS BUDGET WRITERS
% WORKING WITH A MASSIVE SURPLUS,
% THIS $7 BILLION SURPLUS.
% WHERE DID THAT COME FROM?
% >> IT'S REALLY INTERESTING.
% IT REALLY CAME ABOUT THROUGH THE
% PANDEMIC, AND I THINK IN MARCH
% OR SO OF 2020 WHEN EVERYBODY
% THOUGHT EVERYTHING WAS GOING TO
% COLLAPSE, THE FEDERAL GOVERNMENT
% CAME IN WITH NUMEROUS BILLS THAT
% REALLY HELPED NOT ONLY
% GOVERNMENTS BUT INDIVIDUALS AND
% BUSINESSES.%AND THE STATE OF
WISCONSIN IN
% TOTAL, REPROUDLY GOT ABOUT $58
% BILLION.%SOME OF IT WENT TO I
NDIVIDUALS,
% CHECKS.%SOME OF IT WENT ON U
NEMPLOYMENT
% INSURANCE, CHECKS THAT WERE
% INCREASED, SOME OF IT WENT TO
% HELP BUSINESSES, SOME OF IT WENT
% TO HELP GOVERNMENTS.
% AND DURING THAT TIME, WE HAD
% INFLATION STARTING TO CREEP UP
% AND BASICALLY OUR SALES TAX
% COLLECTIONS WERE LOOKING STRONG,
% AND THEN BECAUSE OF THE HELP
% THAT THE FEDERAL GOVERNMENT GAVE
% TO BUSINESSES AND OTHERS SO THEY
% WOULDN'T REALLY GO UNDER AND
% WE'D KEEP PAYROLLS THERE, INCOME
% TAXES AND CORPORATE TAXES WERE
% REALLY STRONG, SO WE ACTUALLY
% ENDED THE 2021 FISCAL YEAR WITH
% ABOUT 2.6 BILLION, WHICH WAS A
% LARGE NUMBER FOR US.
% THE END OF 2021/'22, IT WENT TO
% 4.3 BILLION AND NOW IT'S ABOUT 7
% BILLION THAT WE EXPECT WE GET
% ABOUT 12-1/2 WEEKS ON JUNE
% 30th OF THIS YEAR SO IT'S
% REALLY ACCUMULATED OVER THAT
% PERIOD OF TIME.
% BUT AS YOU INDICATED, IT IS THE
% LARGEST AMOUNT OF SURPLUS MONEY
% THAT THE STATE HAS EVER HAD
% GOING INTO A BUDGET PERIOD.
% >> I WISH WE COULD TALK MORE
% ABOUT THAT BUT OUR TIME IS UP.
% GOOD LUCK TO YOU AND THE BUDGET