State Budget Impacts to Dane County

The Governor signed the 2011-2013 budget into law on June 26, 2011. The following is a summary of the new state budget and its impact on Dane County. Clearly the County will be struggling to continue to provide the same level of service, especially to our most vulnerable populations, but we will continue to streamline and increase efficiencies as much as possible. The county budget process will start in late August as County Executive Parisi develops his budget and public input on the budget occur into the fall.

Property Tax Levy Limit: For each year in the biennium, each county/municipality is required to adopt a levy limit that allows a levy increase equal to the greater of 0% or the increase in equalized value due to net new construction. This percentage increase would be based on the prior year actual levy. Unused levy authority could be carried forward but only to a maximum of 0.5% of the prior year levy and only with a ¾ affirmative vote by the County Board. If no carry forward is adopted for 2011-2012, the county would not have to reduce its levy that year under the debt service adjustment on debt issued before July 1, 2005. The county tax rate limit would be suspended for 2011 through 2013, but beginning in 2013-2014 the tax rate limit would revert back to the 1992-1993 tax rates.

Impact: Save Dane County $1.3 – 2.9 million if the county is not required to reduce its levy for reductions in debt issued prior to July 1, 2005.

Child Support: The state budget reduces child support funding by $12.5 million per year which then lessens federal matching funds. In addition, the budget requires DCF to distribute the reduced funding based on county performance.

Impact: Funding reduction of $840,000 (state & federal matching) per year.

Dane County RTA: The budget bill includes language that eliminates all RTAs including the Dane County RTA.

Income Maintenance: Income Maintenance programs are now required to be implemented by at least 10 separate multi-county consortia statewide. Each consortia must have a plan in place by Oct. 1, 2011, approved by DHS by Oct. 31, 2011, and DHS must enter into contracts with the consortia starting Jan. 1, 2012. The State will perform other administrative duties including relocating the document processing unit outside of Dane County no later than July 1, 2012. Counties would contribute their Income Maintenance overmatch to their IM consortia. Dane County is early in the negotiation process with other counties.

Impact: Estimated funding loss of $200,000 per year and 2-3 staff positions.

Badger Prairie Health Care Center: The budget includes a $1 million increase to supplemental payments to municipal nursing homes, including Badger Prairie Health Care Center.

Impact: Estimated increase of $31,000 per year for Badger Prairie Health Care Center.

Treatment Alternative Diversion Program: The budget reduces the Treatment Alternative Diversion Program by 10% and requires any county receiving a grant by 1/1/2012 to provide a 25% match. Starting in the 2012 budget, the TAD program grants will be available to new counties through a “competitive grant process”. Prior TAD counties would be able to re-apply.

Impact: In 2010-2011, Dane County received $154,427 in TAD funding. With the 10% reduction and the 25% match requirement, it is uncertain whether the Dane County DART program will still be viable.

W-2: The state budget reduces grants by $20 per month to recipients who receive them and tightens program timelines.

Impact: The negative impact will be on Dane County W-2 consumers. Dane County will operate the program in compliance with State rules and regulations and within the funds contracted to us for the program benefits, services and administration.

Wisconsin Quality Home Care Authority: The budget eliminates $1million in funding for the Authority and the Dane County Quality Home Care Commission. The statutory language creating the Authority and Commission was repealed in WI Act 10 (Budget Repair Bill). The Dane County Quality Home Care Commission would be dissolved.

Youth Aids & Juvenile Corrections Institutions (JCI) Daily Rates: The budget reduced Youth Aids by 10%. The state daily rates for juvenile correction institutions have been increased to $284 in 2011-2012 and $289 in 2012-2013, and the increases include $17 to offset juvenile corrections deficit.

Impact: Dane County will see a loss in Youth Aids funds of $355,000 in 2011 and $710,000 in both 2012 and 2013. The state will charge Dane County $53,4234 more in 2011, $161,835 in 2012 and $180,000 in 2013 for juvenile institution placements.

Family Care: The budget put an enrollment cap on Family Care participants and prohibits expansion to new counties. Dane County has not yet implemented Family Care. The budget fully funds Aging and Disability Resource Centers (ADRCs) started in the 2009-2011 biennium, and it funds the new ADRCs in 13 counties starting 2011-2012, providing them with $379,400 in 2011-12 and $5.9 million in 2012-2013.

Impact: Dane County may be among the 13 counties eligible in the State budget for funding of operating costs for an ADRC in Dane County ($2.8 mil State funds and $1.2 mil in medical assistance) starting some time in 2012. County staff are working on determining if this Center can be started and operated for the funds available and with no additional local contribution. A Center would most certainly have a positive service impact, but any fiscal impact is hard to determine.

Shared Revenue: The state budget reduces shared revenue for counties and municipalities by $76.8 million in FY 2012. In the past, local governments were required to continue public safety and fire protection funding lo lower than the previous year’s levels (termed Maintenance of Effort). The state budget repeals local government maintenance of effort requirement for public safety.
Impact: Under this budget, Dane County’s shared revenue would be reduced by $525,000 for 2012 and beyond.

Working Lands Initiative: The state budget repeals the conversion fee and PACE bonding authority ($12 million), however, statutory authority for the program as well as the PACE gifts, grants and working lands appropriations and agricultural enterprise areas were maintained. The budget does delete the DATCP requirement for PACE applications, and uses $5.2 million in Stewardship funds for 16 farms approved in 2009. The budget calls for a study to develop a less expensive program. Conversion fees collected by a political subdivision for 2011 (prior to budget bill) are to be retained by that political subdivision.

Impact: If Dane County is allowed to keep state’s portion of conversion fees, it would retain the $84,718 collected for 2011-12. If the county is not allowed to keep state portion, then Dane County will need to reduce budgeted revenues by $25,000.

Stewardship Funds: The state budget reduces bonding authority under the Knowles-Nelson Stewardship program from $86 million to $60 million each fiscal year and prevents unused money from being rolled over. The Joint Finance Committee will oversee purchases of $250,000 or more via passive review. DNR is required to set aside $6 million for dam safety grants to counties. For stewardship fund proposed acquisition, local governments may adopt a nonbinding resolution in support or opposition to the land acquisition.

Impact: Over the biennium, $2.5 million is transferred from the Conservation Fund to the General Fund.

Recycling Grants: The state budget provides $19 million per year for the recycling grant program. Another $1 million will be split between all the municipalities that enter into cooperative agreements for recycling services. The entire recycling surcharge tax ($23.4 million annually) was renamed economic development fund.

Impact: The same amount of fees will be collected from our landfill, but local municipalities’ recycling grants have been cut by 40%. Over the biennium, $46.8 million is transferred from the Recycling Fund to new “Economic Development Fund”. In addition, the budget transfers $16.1 million from the Recycling Fund to the Environmental Fund, and transfers $21 million from the Environmental Fund to the Transportation Fund.

Transportation Aids: The budget maintains funding for the General Transportation Aids for 2011, and provides a 10% reduction in aids for 2012 and no increase for 2013. The budget also increases the bicycle/pedestrian facilities grant program by $1 million each or $3.7 million per year. Funding for town road projects (but not counties) was increased by $5 million.

Impact: Dane County will lose $346,417 in both 2012 and 2013.

The budget also includes a provision that
a) prohibits a county from using its own workforce for a highway improvement project in another county or a municipality in a different county unless
1) a portion of the project lies within the county doing the work and no portion of the project extends beyond an enjoining county; or
2) the project lies within a municipality that lies partially within the county doing the work; and
b) prohibits a county from using its own workforce to perform a highway improvement project for a city or village with a population over 5,000, except as allowed in limited circumstances under the local roads improvement program.”

Impact: Highway and Transportation staff are continuing to review the impact of this provision

The budget require that whenever a county, city, village or town “lets a public contract by bidding, the bidding must be on the basis of sealed competitive bids, the contract must be awarded to the lowest responsible bidder, and the local government may not use a bidding method that gives preference based on the geographic location of the bidder or that uses other criteria for selecting the lowest responsible bidder.”

Impact: This provision makes the County’s “Best Value” ordinance illegal. Corporation Counsel Office is reviewing the best value ordinance in light of this provision.

The budget also provides $15 million in 2011-2012 for the state highway maintenance program and provides for a 2% increase for 2012-2013. Alter definitions of highway maintenance activities performed by counties.

Impact: The impact to Dane County will depend upon how the funds are distributed.

Prevailing Wage: The budget includes language that the prevailing wage threshold applies to $100,000 “multiple-trade”(no single trade accounted for 85% of labor costs) municipal/state projects.

Repeal prevailing wage rates for publicly funded private construction projects. Prevailing wage rates do not apply to governmental unit projects that do not compensate any individual performing work on the project. The budget also voids any local government prevailing wage ordinance upon the effective date of the budget bill.

A local government public works project for erection, construction, repair, remodeling, or demolition of residential property (two dwelling units or less) is not subject to prevailing wage. Prevailing wage does not apply to a residential development approved by a government authority for work paid for by the developer and dedicated over to a municipality for road, street, bridge, sanitary sewer or water main projects. All the prevailing wage changes are effective the date that the budget bill is effective.

Collective Bargaining: The budget bill subjects new public safety employees hired on or after the effective date of the bill to the requirement that they pay the same amounts toward their pensions as general occupation employees under Act 10. The design and selection of health coverage plans by the municipal employer for public safety employees is no longer a subject of collective bargaining. The budget also provides the required local employee retirement contribution for all employees, be deducted from the employee’s pre-tax income for purposes of federal/state income taxes (not FICA).

Buy Local Program: The budget funds the Buy Local Buy Wisconsin program at $200,000 per year.

Septic System Changes: The budget amends the sewage replacement requirements rules to alter the circumstances under which an owner must replace/rehabilitate a failing residential private sewage system. It also changes the grant program by increasing eligible replacement costs from 60% to 75% and raising the allowed maximum family income from $45,000 to $67,000 for a family of four. Under the changes, 450 families would be eligible at $5,200 per grant through a “highest priority” system based on an enforcement order.

Impact: This provision weakens enforcement of failing septic systems and expands the eligibility for the grant program while decreasing funding 17%. The weakened enforcement will come into effect when a family earning less than 300% of poverty level has a failing septic system but there is insufficient money in the fund to refund the family 75% of the cost of their system. Currently, the program at existing funding levels is prorating grant awards due to the high volume of applicants around the state. It is expected that grant applications will increase but with less money, applicants will receive much less than 75% of the cost of their system.

Assembly/Senate deleted these provisions.

Phosphorus Rules: Provisions to eliminate the phosphorus rules were removed from the budget.

Alliant Energy Center: The budget reduces the state’s share of debt payment for the Alliant Energy Center by10% and by $20,600 in 2012 and 2013.
Impact: Since the Alliant Energy Center operations are not funded by the County budget, this amount will have to come from Alliant Center operations. During the downturn in the economy, bookings at the Alliant Center have been less and thus their funding has declined. There may need to be county funds to help the Alliant Center make up this difference.

Circuit Courts: The budget reduces the Circuit Court Block Grant, Guardian ad litem fees and Victim Witness funding by 10%. The budget also eliminates the self help center on court information.

Impact: Circuit Court Block grant is reduced by $74,063 in 2011 and by $148,125 in 2012 & in 2013. Guardian ad litem fees are reduced by $16,290 in 2011 and by $32,580 in 2012 and 2013. Victim Witness funding is reduced by $27,375 in 2011 and by $54,750 in 2012 and 2013.


Small Claims Cases: The budget increases the jurisdictional amount for small claims cases from $5,000 or less to $10,000 or less. Current jurisdictional amounts would still apply to third party complaints, personal injury claims or tort claims.

Impact: This provision increases caseloads for Court Commissioners without any additional funding.