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 STATE
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 LOCAL
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 LEGISLATURE 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 INDIVIDUALS,
CHECKS.
SOME OF IT WENT ON UNEMPLOYMENT
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