With its prospects for a new local sales tax on hold, Waukesha County has focused on another potential revenue source — one which would require broad-based agreement among state legislative leaders.
In a recent resolution approved by the Waukesha County Board, supervisors are trying to make a case for additional state funding to support ongoing services, especially those mandated by the state. They argue that, as they see it, the county ranks near the bottom per capita in state funding, making it difficult for the county to generate a budget that serves its residents effectively.
“Residents are already overtaxed, yet our county government receives woefully inadequate funding from the state,” County Board Supervisor Jacob LaFontain, who introduced the resolution on Nov. 26, said in a news release. “This resolution is the first step in finding a more equitable solution to fund county government while avoiding any sales tax.”
In short, county taxpayers are subsidizing the cost of services, such as enforcement of state laws and regulations, the resolution suggests.
Waukesha County points to financial stress tied to state aid
The resolution specifies that the county, with its 411,000 residents, sends about $1.5 billion to the state in taxes and receives about $60 million in state funds to fund its budget. It also says that, for the 2025 budget approved in November, about 44% ($51 million) of the revenue collected from county property taxpayers will be allocated to cover the funding county officials feel should be covered by the state.
Using data collected for the Green Book, a publication from the research arm of the Wisconsin Counties Association, county officials noted that Waukesha County, among the 72 counties, ranks second lowest in state aid and shared revenue at $148 per person. The state average is $285. The median is $352. (Only Rock County, at $124, ranked lower.)
The funding disparity has particularly challenged public safety budget areas, including in the district attorney’s office (which is more than 10 positions shy of prosecutors needed to manage its caseload) and the county jail (which is close to capacity with nearly half of its inmates coming from homes outside the county), according to the resolution.
Budget cuts in public safety, including the closing of its Huber work-release jail facility, were a notable part of the 2025 budget, officials have previously said. Supervisors reiterated that point in backing the passage of the resolution unanimously.
“The county’s budget issues have not been resolved, and the county is facing looming budget challenges related to public safety,” Supervisor Larry Bangs said in the release. “I hope this resolution can be used to encourage all residents to contact their state representatives and demand fair funding for Waukesha County.”
Additional state funds won’t come easily
But such increases in funding are problematic. Any revenue boost would be subject to the normal legislative process, requiring the introduction of a bill that legislative leaders would have to consider at the committee level, then in the Assembly and Senate, before it could even hope to advance to the governor’s office.
County officials believe they have a convincing argument. As part of the resolution, supervisors asked that the county’s request be sent directly to Gov. Tony Evers and each legislator whose district includes Waukesha County, plus the Wisconsin Counties Association.
“I believe if we work with the state in a civil and collaborative way, the legislature will come to the table and heed our requests,” Supervisor Johnny Koremenos said in the news release.
Legislative leaders, however, can’t make any promises.
State Rep. Dave Maxey (R-New Berlin), who has previously met with supervisors to discuss the county’s budget-related concerns, and other legislative leaders have reportedly suggested to county officials that some believe that the county’s lack of a sales tax means that it has not used all the tools at its disposal to fund its budget.
Maxey did not respond to messages seeking further comment on his talks with county officials or the county’s chances of gaining additional state aid.
But State Sen. Chris Kapenga (R-Delafield), whose 33rd District consists largely of communities within the county, said the political environment offers little hope for additional state funding than currently formulated. That means budget cuts may be the only answer locally.
“The county needs to increase efficiency and make tough decisions like we did when we passed Act 10, and put the taxpayer first, who is their boss,” Kapenga said in an emailed statement. “For this reason their proposal won’t make it through the Senate.”
State Rep. Scott Allen (R-Waukesha), who represents Assembly District 97, wasn’t quite so pessimistic, at least offering hope that legislative leaders will entertain a proposal.
“It never hurts to ask,” Allen said in an emailed statement. “No odds offered on success. We will have to see.”
State funding resolution grew out of sales tax discussion
While the push for more state funding is hardly new, the motive for a renewed effort is indelibly tied to Waukesha County’s recent discussions and subsequent attempt to approve an ordinance that would have authorized a 0.5% county sales tax effective July 1, 2025.
That effort stalled in November after a pushback from business and Republican party leaders, who questioned the wisdom of creating a $50 million revenue source to address a $5.5 million budget shortfall.
Even county officials were apologetic in proposing a sales tax, saying it was necessary but not ideal. However, they noted that the county was one of only three among the 72 counties to have rejected such a funding option. (Racine County subsequently approved a sales tax, leaving only Winnebago and Waukesha counties without one.) They also pointed to the state’s property tax levy limits, in place since 2011, as too restrictive to fund even a conservative county’s budget needs.
In public statements following the withdrawal of the sales tax ordinance proposal, county officials acknowledged exploring other revenue alternatives, including seeking additional state aid. Officials have also hinted they might ask legislative leaders to support a bill that would allow a smaller sales tax than the 0.5% rate currently specified in state law.
Contact reporter Jim Riccioli at james.riccioli@jrn.com.
This article originally appeared on Milwaukee Journal Sentinel: Waukesha County asks for more state funding in lieu of new sales tax