Note: The following is an article written by Mark Harris that appears in the September 2005 issue of The Wavelength, the Winnebago County newsletter.

From the desk of the

COUNTY EXECUTIVE

The perfect financial storm has hit local government. Intergovernmental transfers (money provided to the County from the State and Federal government) have not kept pace with rising costs and in some cases have been greatly decreased. The County will experience the loss of $600,000 in Medicaid reimbursements, $160,000 decrease in M.E.G. unit funding and $105,000 decrease in transportation aids just to mention a few of the decreases.

The Counties general fund has dwindled to the point where it should not be relied upon to close any gap between spending and revenue. The general fund held reserves of more than 10% of the County’s annual spending at the end of 1997 and it is expected to have less than 5% of annual spending by the end of 2005.

The State of Wisconsin has imposed a levy freeze that prevents the County from increasing its tax rate and, in fact, it compels the County to drop our tax rate to offset the appreciation of the existing tax base. The County does receive additional revenue from the new construction that comes on the tax roles for the first time. This means that the County will only receive $1.6 million or about a 1% increase in our total spending from property tax increase next year. This is far short of the increased cost of fuel, electricity, and wages. Local control of tax and spending issues has been taken away.

Winnebago County is faced with two unpleasant alternatives. The County must dramatically cut spending and services and layoff more than 100 people or the County can adopt a ½ % sales tax and avoid most of the layoffs. If the sales tax is adopted, significant reductions in the property tax will be included. With the sales tax it is expected that the County could meet essential obligations to the community and reduce the equalized property tax rate from $5.68 in 2005 to $5.28 or less in 2006 and to $4.98 or less in 2007.

Tune into the September 6th Special Orders meeting of the County Board to learn more about the County’s finances and the difficult decision before the Board.

Mark L. Harris
County Executive