Government Numbers Don't Tell the Whole Story

Increased contributions to pensions from public employees would compensate for a 50 percent cut in state aid next year, according to estimates released Tuesday by the nonpartisan Legislative Fiscal Bureau.

However, those estimates don't tell the whole story for Shorewood, which would still have a budget shortfall from other losses in revenue.

The 50 percent state aid reduction translates into a $156,164 cut in state aid, to $156,165. The village received $312,329 last year. But a savings of $162,500 as a result of employees' increased contributions to their Wisconsin Retirement Saving funds — per the hotly argued budget repair bill — more than offsets that lost revenue.

But, looking past those numbers the village will lose a lot more revenue that just the 50 percent.

Gov. Scott Walker's proposed 2011-13 budget bill doesn't allow municipalities to increase their tax levy to offset state aid cuts; as a result, the village estimates a revenue loss of more than $200,000, based on an average increase of 2 percent on the tax levy.

The village's recycling program is a high priority, Village Manager Chris Swartz said, but the village will not receive the $82,000 in state aid it would have otherwise.

In addition, the governor's budget bill would cut transportation aid by 15 percent, or $93,338 to $529,201 for 2012, and there is an additional $12,500 lost in funding from the county.

Excluding the savings from increased pension contributions, the loss of revenue is nearly $550,000 compared to the would be, but with the savings, the big picture has the village $384,859 in the hole.

"This is the hand we have been dealt, and we have to deal with it," Village Manager Chris Swartz said.

Swartz said the village doesn't use the state's health plan so public workers won't be required to contribute more to their health benefits.

This is all after the governor signed the budget repair bill into law last week, eliminating most collective bargaining rights from public employees and calling for them to contribute 5.8 percent to their pensions and 12.6 percent to their health benefit premiums.

The village won't see the effects of the governor's budget repair bill or proposed 2011-2013 budget, which calls for $96 million or 11.6 percent cut in state aid to local municipalities, until the beginning of the new year as Shorewood's fiscal calendar is different than the state's fiscal calendar, which recycles on April 1.

Swartz said he will discuss the numbers with the Village Board on Monday, at their next board meeting.