Milwaukee Journal Sentinel

Board faces tax choice

Abele asks it to approve $60 wheel tax by end of October

- DON BEHM

Milwaukee County Executive Chris Abele is asking the County Board to take the unusual step this month of approving a $60 county wheel tax, a major revenue source in Abele’s recommende­d 2018 budget, before the board adopts a final budget for next year.

The proposed $60 vehicle registrati­on fee — up $30 from this year — would generate $30.6 million in 2018, according to budget documents.

Money from the wheel tax is spent on maintainin­g county highways and parkways, as well as costs of operating the Milwaukee County Transit System.

The $30 boost in the fee is expected to yield more than $14.6 million next year and that extra cash already is included in Abele’s recommende­d budget.

“To reach this full $14.6 million, however, we would need to receive the $60 fee for 11 months in 2018,” county Administra­tion Director Teig Whaley-Smith said Monday in an email sent to the 18 supervisor­s on the board.

The only way to achieve that goal is for the board to act in October, according to Whaley-Smith. The reason is a necessary 90-day delay after approval before the state transporta­tion department can begin collecting the higher fee for the county.

If the board waits until November to embrace the higher fee, the county would miss its revenue mark by $615,000, he said.

County Board Chairman Theodore Lipscomb Sr. on Monday criticized the Abele administra­tion for presenting a budget based on two assumption­s: that the board will approve a $60 wheel tax and do it in October so as not to lose $615,000 in revenue.

“The budget is out of balance unless the board acts first on the wheel

tax,” Lipscomb said Monday at a special board meeting with Whaley-Smith to review the recommende­d budget.

Whaley-Smith agreed.

Supervisor Deanna Alexander asked Whaley-Smith if Abele has recommenda­tions for $615,000 in budget cuts if the board respected the annual budget-setting process and did not act on the wheel tax increase proposal until November. The board is scheduled to take final action on the 2018 budget on Nov. 6 at the courthouse.

“There is no recommende­d Plan B,” Whaley-Smith said.

Persuading the board to approve the higher $60 wheel tax in any month would appear to be a tough sell for Abele.

The county’s current $30 vehicle registrati­on fee is on top of the state’s $75 fee. City of Milwaukee vehicle owners pay a separate $20 wheel tax.

Both Lipscomb and Supervisor Michael Mayo Sr., chairman of the board’s transporta­tion committee, have stated their opposition to the higher county fee. Lipscomb last week reminded Abele that 72% of county voters in an April referendum opposed a total $60 wheel tax.

Supervisor Steve Taylor said Monday that the level of opposition was even larger — more than 80% — among voters in his district. He represents Franklin, Oak Creek and Hales Corners.

Taylor does not expect the board to accept a $60 wheel tax. In return, supervisor­s will have to fill a hole in the budget through cuts in services, he said.

“Abele’s handed the County Board a budget, and now we have to fill a $14.6 million hole unless we keep the whole $60 wheel tax,” Taylor said.

“This is not a balanced budget,” Mayo said.

Abele had been scheduled to review his recommende­d $1.16 billion budget with the County Board at a meeting beginning at 4 p.m. Monday in the courthouse. A family member’s health emergency early Monday prevented him from attending the meeting.

Whaley-Smith stepped in for Abele Monday.

One major capital project in the budget is the proposed constructi­on of a new internatio­nal terminal at Mitchell Internatio­nal Airport at a total cost of $50 million.

More than $25 million included in the 2018 budget will pay costs of demolishin­g the unused Concourse E at Mitchell and initial constructi­on on foundation­s and building frame for the new internatio­nal terminal.

The county budgeted $4.6 million this year on the building’s design and engineerin­g plans.

Constructi­on will be completed in 2019 at an estimated cost of $20.1 million. No property tax dollars are spent on airport constructi­on or daily operations.

In addition to a $30 increase in the county wheel tax, Abele’s recommende­d 2018 budget includes an increase in the property tax levy.

A property tax levy of $294 million for 2018 is up 1%, or more than $2.9 million, from this year. The levy increase comes from the net value of new constructi­on in the county, so most homeowners will not pay more property taxes to the county for 2018, budget officials said.

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