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Budget Committee Approves Ending Local Government Insurance Program

Fund Is Currently Running A Deficit

By
Shawn Johnson/WPR

Republicans on the Legislature’s budget committee have voted to end a more than century-old local government insurance program.

When Gov. Scott Walker’s budget initially proposed getting rid of the Local Government Property Insurance Fund, local officials asked lawmakers to reconsider, saying the move would make it harder to buy insurance and drive up their premiums. State Rep. Chris Taylor, D-Madison, told Republicans they should listen.

“This is not going to help our schools, this is not going to help our cities, this is not going to help our towns, and they told us this. So let’s listen to them,” she said.

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But the fund is running a deficit that could leave state taxpayers on the hook. Joint Finance Committee Co-Chair John Nygren, a Republican from Marinette, said it makes more sense for private insurers to handle it.

“This moving forward is putting the risk in the hands of the insurance company rather than the taxpayers of the state of Wisconsin,” said Nygren.

Lawmakers did vote to delay the fund’s phase-out by another two years.