Janesville City Council takes concerns to lawmakers
Photo 
George Brunner
Photo
Eric Levitt
Photo
Jacob J. Winzenz
JANESVILLE — The folks in Madison apparently think Janesville is rolling in dough.
City Council President George Brunner on Wednesday asked city staff to draft a letter to the people in control at the state Capitol to tell them that things aren’t so good here anymore—just in case they hadn’t heard.
When compared with 12 other peer communities, Gov. Scott Walker’s proposed budget cuts Janesville’s portion of state shared revenue the most of any at 23 percent.
That’s more than Eau Claire at 17 percent; much more than Green Bay at 10 percent; and way more than Beloit, which is 2.5 percent.
The average cut is 10 percent.
The council gathered Wednesday to talk finances. Members learned the city faces a $2.76 million deficit in 2012.
The council asked City Manager Eric Levitt to write a letter to the state’s Joint Committee of Finance, outlining the impact the state budget would have on Janesville.
The council also will send letters to the city’s state representatives.
Why is Janesville getting such a large cut?
The state didn’t apply an across-the-board reduction but rather reduced the pot of money available and then distributed it using the existing formula, Assistant City Manager Jay Winzenz said.
Janesville is considered to be a fairly affluent community under that formula.
Other communities in the state were hit even harder but are not those among Janesville’s peer cities. Some communities in the Milwaukee area, for instance, received a 50 percent cut, which is the largest hit a community could take, Winzenz said.
“Janesville was always one of the payers, and it was redistributed to communities with the greater need,” Brunner said after the meeting. “That formula has never changed and the Janesville economic environment has changed drastically in recent years,” he said. “We’re still being treated as that industrial community (but) we don’t have that income base anymore.”
Janesville’s total revenue reductions state include:
-- $1.14 million in state shared revenues.
-- 349,000 in state road aids.
-- $321,000 in a state recycling grant.
-- $56,000 in a transit operating subsidy.
After factoring in slight increases in permits and fess, water utility taxes and a more realistic estimate of fire department service fees, the total revenue loss is $1.51 million.
Meanwhile, expenditures will increase $1.3 million, including an additional $737,000 for wages and wage-driven fringes; $270,000 for health insurance; and $50,000 for animal control for a total of $1.3 million. That figure includes a decrease of $385,000 because some employees are expected to contribute part of their pension costs to the Wisconsin Retirement System.
The operating deficit of $2.7 million is a “significant” budget challenge,” Winzenz said. If the council decides not to apply as much of its rainy-day fund, it goes up. If it reduces the amount of money it borrows for street maintenance, it goes up.
“We’ve got about 200 city employees working on various city committees to identify ways to become more efficient and to reduce costs, and we’re putting together a whole bunch of information for you all to consider,” Winzenz told council members. “But we’ve got a big challenge.”
The state is not allowing municipalities to raise property taxes so “that squeezing on both ends makes this doubly difficult for Janesville,” Winzenz said after the meeting.
“It’s a local control issue,” he added. “The council doesn’t have the ability to control the destiny or the services in Janesville.
“Isn’t that what they were elected to do?”
Apr 30, 2011 at 6:42 p.m.
Suggest removal
Poobah, you are really starting to sound like a broken record with the comparison of the "haves vs have nots". Wealth redistribution? Seriously? Those who enjoy wealth, to me, deserve what they have, for the most part. Those of us who struggle, put ourselves here, in one way or another. If we were ALL frugal with our "needs vs wants", no one would be in this mess. The state first off, Bush and Doyle, created this fiasco. People have lived beyond their means for decades! Got credit card debt? You're part of the problem. A second mortgage? You're part of the problem.
We need a solution to this mess. You want to bark at Walker? Knock yourself out. I voted FOR him. We need to re-educate an entire society on frugality.
Basically, a vote for Walker was a vote to stop the waste. Cut and cut some more... Get back to the basics.
Apr 29, 2011 at 2:50 p.m.
Suggest removal
The private sector gets bailed out - the public sector has to bite the bullet.
Apr 29, 2011 at 2:07 p.m.
Suggest removal
Tells you a lot about the tax and spend conservative wealth redistribution machine of Walker and his propensity for payback. This is nothing more than payback to a city where the majority of citizens has not supported him and his tax and spend cronies.
Apr 29, 2011 at 8:18 a.m.
Suggest removal
Hoorah! Governor Walker is spending money improving the highways so people can speed on past J-ville!
Apr 29, 2011 at 8:14 a.m.
Suggest removal
Maybe the city shouldn't have rushed to sign union contracts so then those city employees could also pay their part of their pension. That would save the city money.
Police and Fire, are you just going to stand there and watch your fellow employees get laid off while your budgets are the majority of the city's budget? Anybody look into that?? Let's create a real savings for all cities of the state by forcing all public employees to pay their part in pensions! The city's pay nearly 22% of police and fire pensions, while only paying roughly 11% of all other city employees. That is what I call putting a strain on a city's budget.
Apr 29, 2011 at 7:37 a.m.
Suggest removal
jvlkid, point well taken but I don't think Janesvilles allotment should be any less than any other city this size.True, there are a lot of WANTS in this town that need to be let go given the revenue situation the way it is.If you don't have the money,don't spend like you do
Apr 29, 2011 at 5:52 a.m.
Suggest removal
I agree Doc0430 about looking at needs and wants. Simple common sense. When there's not enough money then start by cutting out the "wants" such as recreation (some of which are already duplicated at places like the Y). Services should be the last to go whenever possible.
Apr 29, 2011 at 4:52 a.m.
Suggest removal
The state offers less and charges the same - I suppose that is one way to "balance" the budget...
-
The most salient point in the article is near the end, "local control". I thought that was a Republican ideal? Guess they're all the same.
Apr 29, 2011 at 1:10 a.m.
Suggest removal
I don't think it's any governor's job to teach any local community a hard lesson. If that's the case, I digress back to my first comment here. We pay 6% income tax to the state. Let's cut back the state 23% of that and pay them only 4.62% and keep the 1.38% to fix our local budget. See how Walker would like that and tell him he can't raise taxes to make up the difference. Teach him a lesson on fiscal responsibility.
Apr 29, 2011 at 12:34 a.m.
Suggest removal
Walker is trying to teach the hard lesson of fiscal responsibility to all cities that have spent all willy nilly over the past, that has to stop and we all are going to live within our means it's sink or swim so to say. Open the books and see whats a need (city services) and what are just wants (ice arena, skate park, tunnels and round abouts etc...) it's time to pay their tab because it's closing time!!
Apr 29, 2011 at 12:31 a.m.
Suggest removal
“We’ve got about 200 city employees working on various city committees to identify ways to become more efficient and to reduce costs, and we’re putting together a whole bunch of information for you all to consider,” Winzenz told council members. “But we’ve got a big challenge.”
***
So we have 200 people working on figuring out ways to save money?? How about we start with fewer people working on this solution? Do we really need to pay 200 people to figure out where we are spending too much? Why isn't city manager Eric Levitt working on ways to save us money, isn't that part of his job? And yes Fear that $3million ice arena would be a great starting point. The Gazette really needs to have a like button next to comments like most other news sites with blogs have......
That wouldn't cost anything to do by the way....
**
Meanwhile, expenditures will increase $1.3 million, including an additional $737,000 for wages and wage-driven fringes; $270,000 for health insurance; and $50,000 for animal control for a total of $1.3 million
**
Sounds like they know where the money is going that creates the shortfall at least.
Apr 29, 2011 at 12:22 a.m.
Suggest removal
The state shouldn't set the city budget - but they just did when Walker reduced state aid by 23% and then restricted the city from raising taxes and levies to make up the difference. The state shouldn't be mettling in our affairs. At the same time, the state still enjoys collecting 6% of our income which is a large source of where state aid comes from in the first place.
Apr 29, 2011 at 12:02 a.m.
Suggest removal
Heres an idea , NO 3 MILLION dollar Ice rink! Cheesh!
Apr 28, 2011 at 11:55 p.m.
Suggest removal
Well, state aid, or no state aid they better balance the City's budget and if they can't then step aside for people who can. The hard fact is - and read this twice if you don't get it - that the state doesn't set the budget of Janesville, therefore the state is not responsible to pay for Janesville's budget.
Apr 28, 2011 at 11:42 p.m.
Apr 28, 2011 at 10:15 p.m.
Suggest removal
Allisb - people cant use that excuse forever. it makes us sound like needy people
Apr 28, 2011 at 9:46 p.m.
Suggest removal
It's a shame that income tax filers in the City of Janesville can't cut off aid to the state and give that fascist Walker a taste of his own medicine.
Apr 28, 2011 at 8:14 p.m.
Suggest removal
billnewbie, as a direct descendent of the caveman who invented sarcasm, I resent, immensely, your previous comment.
Apr 28, 2011 at 7:49 p.m.
Suggest removal
What did the council expect? Those like Janesville who get a lot of state aid but are relatively well off compared to Beloit and others should have known that when the state ran out of money, they would loose the most aid. Maybe Councilmen Tom McDonald, Yuri Rashkin, Russ Steeber and George Brunner should insist they attach a copy of the letter they wrote to the Governor back in February to this protest letter. Maybe the state’s Joint Committee of Finance will be so impressed with the council's principles and their assumptions of entitlement that they'll immediately take money from Beloit, et cetera, and earmark it for Janesville instead. After all, Janesville deserves it much more than those places <wink> <wink>. GM closed, don't they know? Janesville deserves special consideration!
Well, one good thing should come from this. Maybe now they'll stop talking about bike tunnels, roundabouts, ice rinks, child museums and a whole host of spending ideas fit for a community that's rolling in dough, since they now acknowledge that Janesville is anything but.
Apr 28, 2011 at 5:35 p.m.
Suggest removal
Walker doesn't have a clue or maybe he just forgot that GM has left Janesville. I'm not sure he's really qualified to be governor and I'm not sure he was even born in the United States....Lets ask The Donald
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.