Crowley: A local option sales tax would enable our county to lower property taxes, offer services and compete for talent

There is wide bipartisan support for the local option sales tax proposal in Governor Evers's budget. It's supported by leaders like:

• Tim Sheehy at MMAC
• Julia Taylor at Greater Milwaukee Committee
• Mark O'Connell at Wisconsin Counties Association
• Glendale Mayor Bryan Kennedy who chairs the Intergovernmental Cooperation Council, and
• Milwaukee County Executive David Crowley.

David is the first African American to serve as the county's top official, and, at age 33, also the youngest. He previously represented Milwaukee as a member of the Wisconsin State Assembly, serving from January 2017 until June 2020.

David and I both support the local option sales tax proposal asking the Wisconsin State Legislature to provide counties with the opportunity increase the sales tax by 0.5% (and municipalities with a population of more than 30,000 could do the same) - to provide residents with much-needed property tax relief and continue delivering constituent services. Voters would have to approve any increase in a referendum. 

(If you've never heard of the so-called "Fair Deal," head over to MoveForwardMKE.com and learn more. Long story short, local governments have very few options to raise local revenue to support local priorities, due to state law. This is why Wisconsin communities have historically relied heavily on revenue from property taxes to fund services. This "Fair Deal" effort aims to change that.)

Without further ado, here is my conversation with County Executive Crowley.

SR: As the County Executive, why are you supporting this initiative? How might this proposal benefit your constituents? What’s the risk if it doesn’t pass?

DC: As the economic engine of Wisconsin, Milwaukee County generates roughly one-third of the State’s economic output. The County’s ability to invest in local priorities will enable continued increases in economic output, increasing our contribution to the state, and maintain competitiveness with other major metro areas by attracting new companies, entrepreneurs, and workers through quality public amenities.

Beyond that, there is a need for property tax relief for Milwaukee County residents. Wisconsin municipalities have the 7th highest reliance on property taxes in the country. It is not sustainable to rely so heavily on one revenue source, and having access to additional revenue tools would lessen that tax burden.

A sales tax option would generate more local dollars for Milwaukee County to use on critical investments in local priorities like mental health care, transit, or parks while also providing that crucial property tax relief.

SR: What kind of feedback have you heard from your neighbors about this proposal? 

DC: We have seen and heard support from neighbors, business leaders and other organizations from both sides of the political aisle. We are hearing concern about high property taxes and, from local business leaders, an opportunity to increase revenue and maintain our position as a competitive metro area.

Milwaukee County has a number of great attractions - Fiserv Forum, the Domes, American Family Field, countless local restaurants - that attract the dollars of those living outside of Milwaukee County. The need is clear, the opportunity is clear, and the ability to invest in local priorities will enable the County to maintain competitiveness and provide residents the services they need.

SR: How has the county worked to address this budget challenge in recent years, and how soon will the financial imbalance lead to cuts that residents see and feel?

DC: Milwaukee County has closed $320 million in budget gaps over the last 10 years. Without a change in the County’s revenue options, costs will continue to outpace revenues and we will face a $300 million gap over the next 20 years.

At this rate, without any additional revenue, Milwaukee County will be directing all local dollars to mandated services by 2027. Without a solution, we will be unable to continue current services like public safety, senior services, parks, or mental health care. 

SR: The work group included a wide range of voices from across the political spectrum. In a time of such political discord, why do you think a bipartisan group was able to come together on a solution on this?

DC: Business leaders like those at the Metropolitan Milwaukee Association of Commerce (MMAC) and Greater Milwaukee Committee (GMC) recognize that a sales tax option gives municipalities the certainty to plan for and execute a sound fiscal structure that will make the State an ever better place to invest capital, create jobs, and attract and retain talent.

This isn’t about politics. This is about finding real solutions for real challenges our community is facing.

SR: How has the current COVID economic environment impacted the need for this proposal, if at all?

DC: The COVID-19 pandemic has made the need for additional funding sources even more clear. We know many individuals and businesses were struggling before the pandemic, and the past year has exacerbated their struggles for them and many others who assumed they were financially secure.

While funding from the CARES Act and the American Rescue Plan provide relief for many of our businesses, the one-time funds alone are not sufficient to remedy the long-term effects of this pandemic or the long-term challenges that our community was facing prior to the pandemic.

SR: What are the best ways for residents to join us and voice their support?

DC: I encourage supporters to reach out to their representatives and voice their support for tools, like an additional sales tax, that would enable local investment in local priorities.  

More information and ways to get involved are available at moveforwardmke.com.

SR: Is there anything I didn’t ask, but I should have?

DC: I would just add that we’ve looked at all of the tools available to Milwaukee County, analyzed all options, and continue to try to find sustainable local solutions. For example, an increase in state aid, or shared revenue, isn’t a sustainable solution alone. It would take a 600% increase in shared revenue to provide revenue equivalent to a 1% sales tax increase. Compared to increased fees for County services or raised property taxes, a sales tax increase would result in the lowest cost to taxpayers while enabling the County to invest in local priorities and provide critical property tax relief.

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Help us pass the Fair Deal.

Ready to contact your state legislators and urge them to support the "Fair Deal?" It's easy to get involved.

1) Find Your Legislator - Open the Wisconsin state legislator search tool, enter your address in the search box, and the interactive map will find your State Senator and Representatives.

2) Contact Your Legislator - Here's a helpful message to get you started on an email or a phone call:

• My name is <Name> and I live at <Address>. I am <calling / writing> to encourage your support a local option sales tax for Wisconsin counties. This legislation will give county voters a voice in deciding how best to reduce property taxes and address the funding challenges facing the county and its municipalities. I support this legislation because <insert your specific reasons / beliefs (for example: enhancing our parks and parkways, lowering property taxes, promoting better health outcomes, etc.>. This legislation is about providing local funding for local priorities and as my elected official, I urge you to support it.

To learn more, visit Moveforwardmke.com.

Sincerely,

Shawn Rolland

Milwaukee County Board Supervisor - District 6, representing neighborhoods in Wauwatosa, West Allis and Milwaukee's westside