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Funding Local Governments
Address Shared Revenue

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When the State of Wisconsin first imposed a state-level income tax in 1911, most of the money collected went straight to municipalities and counties; over time, the state began taking in all of the revenue and then “sharing” a portion of it back to municipalities and counties.

The level of revenue shared has been relatively flat or declining for decades
​– representing a dramatic decrease, when inflation is factored in.

For example:

While Milwaukee continues to send more and more tax revenue to the state government every year, the shared revenue it gets back from the state has declined from $250 million in 2003 to $230 million in 2022.

Had state shared revenue payments simply kept pace with inflation, the city would now be receiving $347 million.

Now the state has a $4.3 billion budget surplus, while municipalities are struggling to provide critical public safety and quality of life services.

​We would welcome a discussion on modernizing the shared revenue model to reflect current realities – but another path is available as well. 
​A MODEST SALES TAX INCREASE >