Newsmakers, February 16, 2017

Air Date:
Heard On Newsmakers
Mike Hesse and Karl Green
Mike Hesse and Karl Green John Davis/WPR

Local government leaders said more economic development is needed to raise tax dollars that will support infrastructure improvements in Wisconsin, but they also recognize a fine line that exists between improved economic development and things like good roads and a faster internet needed to foster growth.

A recent survey of officials from the nearly 600 Wisconsin cities and villages belonging to the League of Wisconsin Municipalities shows economic development is the top priority of the group. Executive Director Jerry Deschane said while the majority of roads in the state’s cities and villages are in good shape, they are also expected to rapidly deteriorate which will make economic growth a challenge.

“You need the taxpayers to provide you with resources, we have to nurture a really strong economy because that comes first,” Deschane said.

In the last 15 years, Wisconsin communities have seen less shared revenue, or financial aid from the state, and lawmakers in Madison have also put greater revenue controls on local governments to keep property tax increases to a minimum, and Gov. Scott Walker and the legislature are contemplating ways to improve the state’s roads.

Deschane said local communities need a combination of some financial help from state lawmakers along with robust economic growth that will bring in new taxes.

“It’s unrealistic to think the legislature is just going to say, ‘hey go out there and raise taxes 10 percent,’ our citizens wouldn’t stand for it,” said Deschane. “But, it’s a combination of the two.” (economic growth and more tax revenue)

Increased economic growth alone isn’t the answer for some Wisconsin communities.

Consider the situation in the town of Farmington in northern La Crosse County.

Chair Mike Hesse said the town hadn’t replaced any of it’s 40 miles of roads since the 1970s, until 2016, when it spent more than $800,000 to reconstruct 2.2 miles of Davis Creek Road. It paid for that project by saving money for 10 years, borrowing another $400,000 and getting help from a large state grant.

“We’ve (town of Farmington) been getting $1 and $2 and $3 million of growth every year, even during the downturn we were almost $1 million in growth,” said Hesse. “We need that to get our tax revenue because we don’t get the state shared revenue we used to get. The road aids have been basically frozen.”

Hesse said most Wisconsin towns are in a similar situation. The majority of the state’s roads are in towns and haven’t been replaced in decades and aren’t designed to handle 21st Century farm traffic.

Episode Credits

  • John Gaddo Host
  • John Davis Producer
  • Mike Hesse Guest
  • Karl Green Guest
  • Jerry Deschane Guest