Early Estimates Have Village $400,000 in the Hole Under State Budget

Village officials estimate Shorewood will lose more than $407,000 in revenue if the governor’s budget proposal sees its way through the Legislature, but it won’t see the effects until next year.

Walker’s proposed budget mandates state aid reductions and a tax levy freeze. The impact reaches the village at the start of its fiscal year on Jan. 1, 2012. Shorewood schools, on the other hand, expect to see a $1.9 million shortfall come July, when the state’s fiscal year starts.

There would be about $200,000 lost as a result of decrease state aid and another $200,000 because of the tax levy freeze. Village Manager Chris Swartz said the village averages a levy increase of 2 percent, without that it's counting on a shortfall of  $200,000.

The one of the most significant in funding hits to the village is the more than $82,000 it won’t receive for it recycling program.

“We have to find a way and be creative so we can save it,” Swartz said. “It’s a high priority for the community.”

A levy increase would be allowed for new construction, including the proposed mixed-use development in the Sendik’s parking lot and “Ravenna.”

However, Swartz said the village is still examining whether the state's two-year budget would stall its proposed $71.5 million sewer project.

Some debate has centered around funding sewer work through user fees but nothing has come out of Village Hall to that effect.