How the state budget affects lives and institutions
9:37 PM 8/09/03
Scott Milfred State government reporter

PLATTEVILLE - It's your state budget.

The roads you drive on, the schools your children attend, even the Saturday sidewalk sale downtown are potentially affected by the state's $48.6 billion spending package.

Take Platteville, for example, a city of about 10,000 in Wisconsin's southwestern corner, about 75 miles from Madison.

The massive and complex state budget signed by the governor late last month is playing out in a variety of ways, both good and bad, citizens say.

Platteville School Board President John Krogman fears tighter state caps on local property taxes would force the closing of one of the city's three elementary schools.

Meggan Captain, a sophomore biology student at UW-Platteville, hopes her savings and $6.40-an-hour job as a cashier will cover a $500 hike in tuition, to $3,500 a year.

Ed Bible, an economic development planner, predicts the state expansion of Highway 151 to four lanes around the city will attract more jobs and businesses. It should even prompt the construction of a new hospital within 18 months, he said.

"The bypass, with its easy access on and off, was instrumental in the decision to build the new hospital in that location," Bible said.

Other effects of the two-year state budget - which balanced a $3.2 billion deficit - are harder to spot or haven't played out yet.

Cheryl Zmina, manager of the Platteville Main Street program, said the state budget could mean an end to events such as "Sidewalk Saturdays," a weekly sales promotion she organizes during the summer for the city's historic downtown.

Zmina fears a $164,000 cut in state aid to the city may force Platteville to cut its $15,000 contribution to her program. The city currently funds one third of the program's $45,000 budget.

The first thing to go, Zmina said, would be events such as "Sidewalk Saturdays" that take a lot of time to organize without bringing in money to the program.

The state budget also reduces funding for the Wisconsin Main Street office in Madison. In the past, that office has helped Platteville attract businesses to the city's center and provided financial and marketing advice.

"When people do see that the state budget affects them, they sit up and pay attention," Zmina said.

Platteville City Council President Dorothy Genthe said she hopes the city can absorb the state aid cut without raising property taxes. But that may require higher park and recreation fees as well as cuts in "non-essential" city services such as the city's mining museum, art gallery, senior center and Main Street program.

Genthe, a retired school teacher who has lived in Platteville since 1947, also fears a possible reduction in hours and staff at the Platteville library. Such cuts are an option even though library use is increasing, she said.

"I don't see the emergency services like police and fire getting cut this year," Genthe said. "But next year something might have to give."

Like Bible, Genthe is optimistic that the state's Highway 151 expansion will boost the economy. She thinks it has already helped attract machinery and other businesses to the city's industrial park.

Genthe, a 15-year veteran council member, resents efforts by the Republican-run Legislature to impose a virtual freeze on the city's property tax levy. The state Senate plans to vote Tuesday on the property tax "freeze." A two-thirds vote by both legislative houses is needed to override Democrat Gov. Jim Doyle's veto of the plan.

What happens if the city needs extra money for an emergency? Genthe asks. The proposed "freeze" takes away local control, she said.

"We know our situation. We know our needs," she said. "And here somebody else is telling us we can't do it. That's not good."

"We're not the big spenders," Genthe added, referring to a label former GOP Gov. Scott McCallum once used against local leaders.

Krogman, who has served on the local school board for more than a decade, said the 1,600-student district is losing state funding no matter what because of dropping enrollment. The state formulas for distributing school aid and limiting school revenue are based in part on enrollment, and Platteville is losing about 60 students a year.

On top of an expected $700,000 loss in state aid this year, Krogman said, the Legislature would further tighten revenue caps if its veto override succeeds. Platteville would lose an additional $186,000 in spending power, the Legislative Fiscal Bureau estimates.

That would force the closing of the district's O.E. Gray Early Learning Center, Krogman said. The center currently houses pre-school, 4-year-old and 5-year-old kindergarten classes. Those students would have to move into the city's two other elementary schools. It would be crowded but would save money, Krogman said.

A successful veto override this week also could force the district to drop its 4-year-old kindergarten program even though state dollars are available for some of the cost, Krogman added.

The flip side is of a veto override would be that home and business owners would save money. December property taxes on the state's median-valued home of $132,796 are predicted to increase about $148 to $2,665, according to the fiscal bureau. If the governor's veto is reverse, taxes on the same home would rise just $25 to $2,542.

Five people in Platteville randomly asked Thursday about the property-tax fight at the state Capitol said they weren't following it closely or didn't care.

"There's not much you can do about it," city resident Clayton Stark said of higher taxes.

Rep. Gabe Loeffelholz, R-Platteville, was too busy with farm chores last week to be interviewed for this story, his legislative aide said.

Krogman said he hasn't received a single call complaining about Platteville's property taxes.

"I think it's because people who keep their ear to the ground realize we're trying to hold down costs," he said.