Oct. 31, 2007 — As a part of the compromise state budget package that Governor Jim Doyle agreed to with leaders of the state legislature, local property tax levy increases were to be capped at two percent for the next two years. Basically, under the agreed upon budget provision, county, city, town and village governments could increase their property tax levy by two percent or go to their taxpayers via a referendum or town vote to seek approval for a higher tax levy increase. This provision was proposed to help bring some additional control to the burden of increasing property taxes across our state
Again, Governor Doyle agreed to this provision and actually touted it on the night when he and legislative leaders stood side by side to announce that they had finally reached an agreement on a 2007-09 state budget package.
As agreed to, this tax levy cap went before the full legislature and was approved as part of the overall compromise state budget. Three days later, in a remarkable move, Governor Doyle creatively used his veto pen to dramatically change the agreed upon language and allow for a substantial increase in property taxes. Under the Governor’s vetoed language, property tax levies will be allowed to increase by 3.86% in 2007, almost twice the amount approved in the state budget.
Below, please find the specific budget language that created the property tax cap and the way in which Governor Doyle altered the provision. The words, letters and numbers crossed out reflect the action by the Governor’s veto pen. The remaining underlined words, letters and numbers create the new tax levy cap of 3.86.
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66.0602 (2) LEVY LIMIT.
Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in 2007 or 2008 by a percentage that exceeds the political subdivision’s valuation factor. The base amount in any year, to which the limit under this section applies, shall be the maximum allowable levy for the immediately preceding year. In determining its levy in any year, a city, village, town, or county shall subtract any tax increment that is calculated under s. 59.57 (3) (a), 60.85 (1) (L), or 66.1105 (2) (i).
As you can see, the Governor creates the new cap and allows for the doubling of the property tax increase you could face by using a 3, a .8 and a 6 from a part of the provision that was actually referencing another section of state statute. These numbers, as approved by the legislature, had nothing to do with the level at which property tax levies would be capped. Again, the legislature approved a two percent cap.
This action by the Governor will result in an additional statewide property tax increase of over $70 million. This is above and beyond the $763 million in new taxes and fees that were also signed into law by Governor Doyle.
The Governor’s use of the veto pen in this fashion is wrong and it should be stopped. In an effort to end this abuse, I have co-authored a constitutional amendment that seeks to address this problem. The proposed constitutional amendment would prohibit a Governor from vetoing words, letters or numbers in order to create new sentences and, as such, drastically alter the legislative intent of a spending proposal. As a constitutional amendment, this resolution must pass the legislature in two consecutive sessions and then be approved by the voters in a statewide referendum. The amendment was first passed through both houses of the legislature last session and has received approval on second consideration in the State Assembly earlier this year. Interestingly, it is now stuck in the State Senate where the Senate Democrats have said they would not allow it to receive a vote until after the budget was complete.
This delay, of course, gave the Governor the time he needed to creatively use his veto pen to alter the agreement he made and substantially increase property taxes. As your State Senator, I expected this type of veto, based on the Governor’s past actions, and considered such a potential additional tax increase when I voted against the overall budget package.
Unfortunately for Wisconsin property taxpayers, my expectation came true!
As always, it has been a pleasure communicating with you. Please remember to communicate with me and share your input by calling 888-295-8750, writing to me at P.O. Box 7882, Madison, WI 53707-7882, or by e-mailing me at Sen.Leibham (at) legis.wisconsin (dot) gov. You can also log on to the 9th Senate District on-line office at www.leibhamsenate.com .
It is an honor representing the residents of the 9th District in the State Senate!
