Janesville would lose most in state aid
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Jacob J. Winzenz
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JANESVILLE — A recent memo from the state’s Legislative Fiscal Bureau doesn’t change the fact that Janesville would lose a bundle of money under Gov. Scott Walker’s suggested budget.
It rubs salt in the wound.
Of 193 cities in Wisconsin, Janesville’s percentage of loss is third largest, said Jay Winzenz, assistant city manager.
The bureau released figures showing the impact of the governor’s proposal to reduce state aid and freeze property taxes. State aid includes shared revenues and other money, such as recycling and transit funding.
The average city would see a 3.3 percent reduction in revenue.
Janesville’s reduction is 5 percent.
The only cities facing bigger cuts are Manitowoc and Kiel.
“The raw number isn’t any worse than what we had expected, but I do think it puts into perspective how disproportionately hard Janesville is being hit,” Winzenz said.
Janesville’s reduction is especially alarming during one of the worst economic downturns in city history, exacerbated by the GM plant’s closing in December 2008, he added.
“At a time when this community can least afford to be hit this hard, we’re being hit this hard.”
Janesville will lose $1.9 million out of its general fund budget of $41.6 million
Winzenz said Janesville has been frugal the last decade and did not raise its levy to the maximum allowed by the state.
“What ended up happening is when they reduced the shared revenues and the aids, because our base was already low, the shared revenue and other aid represented more than 5 percent of the base as compared to other cities.”
The formula used to distribute state aid hasn’t changed in years, and that’s one of the problems, Winzenz said.
The council Monday is scheduled to approve a letter to the state and legislators who represent the city detailing the cuts’ impact. City Manager Eric Levitt and several council members have met with legislators, Winzenz said.
Could things change before the budget is passed?
Winzenz said the state might be more generous with recycling aid, but he doubts much will change with shared revenues.
“What unfortunately ends up happening is the state reduces that pot of shared revenue to save money and hold the line on income,” Winzenz said. “But it ends up passing it to the local entities. The difference this time is we have very little in ability to make up that decrease.”
Winzenz said the gap will likely be made up with spending cuts—meaning a reduction in services—and perhaps fee increases.
The city’s Democratic senator, Tim Cullen, said he is aware of the problem and doesn’t think Janesville should have to live with it. The formula is old and can be changed, he said.
“Budgets are a set of priorities,” he said.
Cullen said he would be willing to vote for a budget with changes, and this change would be one of them.
Cullen, however, said it is “not at all clear to me that the administration is interested in any kind of a bipartisan budget. The message I’m getting indirectly is they feel they’d have to make too many compromises to attract Democratic votes and that they would just as soon do it without.”
The city’s Republican representatives would have a chance to demand changes if they intend to vote for the budget, Cullen said.
Republican Rep. Joe Knilans agreed that it’s hard to “choke down” a 5 percent reduction.
He said he is working with the governor and the GOP leadership to see what can be changed. Recycling funds will probably escape cuts, and he believes highway funds will be spared, as well, Knilans said.
“There are some savings there to help cope with what the city of Janesville is dealing with,” he said.
Knilans noted that the city signed contracts with several unions that will shield its members from immediately contributing to their pensions, something that Walker said would help cities deal with state cuts. Still, that’s just a small percentage of the hole, he acknowledged.
“The funding formula isn’t really working right for Janesville,” Knilans said.
The formula was written when Janesville was more affluent, he added.
“It’s hard for me to accept that (today), living in Janesville and seeing a very different story … With General Motors and the supplier plants, it was good income, and now those are gone.
“And that’s a shock to our system down there.”
May 9, 2011 at 4:34 p.m.
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The city should just raise taxes and user fees to offset the difference. Easy.
May 9, 2011 at 4:34 p.m.
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Worthless city employees--garbage gets collected by itself,sewers flow with no problems,streets are repaired by themselves,and if you do have to pay for any services it should be for minimum wage with absolutely no benits--welcome to fritzwalkerville.
May 9, 2011 at 4:01 p.m.
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You people that blame the workers make me laugh. You can not run a city like some company. It does not work the same. The city is giving services. Any person that does not performs or works can be fired or let go. But most of the time they have a lazy stupid boss, just like at a private company. They are to lazy to do the job right. So maybee if you had better leaders people would perform, I know a few city workers they are lazy. Just check them out once.
May 9, 2011 at 6:21 a.m.
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Janesville needs to learn how to be self sufficient. I say cut all the state aid... whatever we even get??? If we cant afford it start weeding out worthless city employees. Thats how any other business works. When times get hard in order to stay a float, its a necessity. For some reason the city thinks its immune to proper business ethics.
May 8, 2011 at 10:22 a.m.
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perfect
May 7, 2011 at 10:44 p.m.
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Why didn't evil "Reaganomics" work for you specifically?
May 7, 2011 at 10:43 p.m.
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Mooshoo and Minan, The same types that show up at OUR doors with your hat in your hand for jobs. Low skills, lots of demands, and entitlement to boot. Do either of you care to know why you were outsourced? Do either of you have any clue? I bet I sound nutty to the likes of you two. You certainly will never see things from my perspective you can bet on that. You are incapable. Why does that CEO make so much more money in one year than you will ever make in your lifetime? Can you take one guess? I await your responses eagerly. This ought to be good.
May 7, 2011 at 9:54 p.m.
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5% from the city, 5% or more from the school district. What more can this city and county take? RECALL Walker before the entire county goes bankrupt.
May 7, 2011 at 9:53 p.m.
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5% or about $1.9 million. That's about how much the city is spending on the ice arena, is it not?
May 7, 2011 at 7:13 p.m.
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It comes down to this: Our current governor doesn't care one whit about the common folk in this state. He cares about one thing: filling his own pockets and making his cronies richer than they already are, filling his own pockets some more, and making his cronies richer still. Walker needs to be gone as soon as we can do that. And Paul Ryan needs a replacement as soon as we can.
By now, it should be plain as the nose on your face what nees to be done. Have you not seen what the Republicans are trying to do?
The poor and the middle class can no longer afford to support the rich. It is time for an end to corporate welfare in this state and in our nation.
May 7, 2011 at 2:18 p.m.
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What companies were "taken over" by big bad evil government? GM? Bank of America? They asked for help with hat in hand. Remember? But do tell what other companies were taken over and are now being run by government. You're the grand wizard here. Do tell.
May 7, 2011 at 2:09 p.m.
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Youkillme, After a huge government takeover of many companies, do you naively believe we are still in a capitalist system? At long last, after the past 5 years, have you paid attention to nothing that has happened? Maybe your own navel has been so interesting that you have not seen what has happened? Make no mistake, my hate is not for our country, I mourn what we have become. My hate is for the failed philosophy of modern liberalism, collectivism, and "shared revenue" types that have murdered what was great about this country. All the while sheep like you stupidly direct the blame in exactly the wrong direction. But don't listen to people like me, go back to sleep. I know it is comfortable and your "feel good" philosophy will get you by.
May 7, 2011 at 2 p.m.
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It's funny you call me naive yet fail to see the stupidity in the philosophy of the explanation you gave. And people like you wonder why our state and country both are shedding manufacturing jobs. Maybe someday right just before we are destitute, people will wake up to this failed idea. Maybe not. Either way I'll be laughing at you.
May 7, 2011 at 1:59 p.m.
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If I had as much hate for an immoral country and government as jv93 has for our system - I would seriously consider moving out of the country to a place where capitalism and taxation does not exist.
May 7, 2011 at 1:52 p.m.
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That makes you immoral and a thief to steal from people when the funds are not yours. Live on in your delusion because your policies make our state weaker.
May 7, 2011 at 11:32 a.m.
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I asked the question. Justifying "shared revenue" uses flawed logic.
May 7, 2011 at 11:28 a.m.
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Let's see here, Winzenz says the city has been frugal for the past ten years. Um, can the city explain the road for GM when they did not ask, nor want it? The ice rink, skate park promise, and buying houses/buildings and tearing them down while leaving a big hole in the property taxes. The list could go on, but it would be boring to list all of them.
May 6, 2011 at 10 p.m.
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“The raw number isn’t any worse than what we had expected, but I do think it puts into perspective how disproportionately hard Janesville is being hit,” Winzenz said.
So before Janesville was benefiting "disproportionately?"
Shared revenue is wealth redistribution in disguise. I'm sure others will get on here to tell me how evil I am for saying that. The truth remains that the state confiscated by force one community's money to give to another community who did not earn it and has no claim to the confiscated funds other than need. How sad and immoral.
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