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Bill > AB688
WI AB688
WI AB688Providing certain municipalities with additional supplemental county and municipal aid and establishing a Shared Revenue Advisory Council. (FE)
summary
Introduced
11/26/2025
11/26/2025
In Committee
11/26/2025
11/26/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
This bill provides cities, villages, and towns with a population in 2022 greater than 50,000 with additional supplemental county and municipal aid payments and establishes a decennial Shared Revenue Advisory Council, as described in further detail below. Under the bill, beginning in 2026, cities, villages, and towns with a population in 2022 greater than 50,000 will receive an additional supplemental county and municipal aid payment. The additional payment distributes $16,257,500 divided proportionally among those cities, villages, and towns. In subsequent years, the additional payments will increase by the percentage change in the amount of sales and use tax revenue for the previous fiscal year from the immediately preceding fiscal year. Under current law, counties and cities, villages, and towns receive county and municipal aid payments and supplemental county and municipal aid payments. The bill also excludes expenditures of additional supplemental county and municipal aid payments provided under the bill from being considered in determining eligibility for an expenditure restraint incentive program payment. Under current law, a municipality is eligible to receive an expenditure restraint incentive program payment if its property tax levy is greater than five mills and if the annual increase in its municipal budget, subject to certain exceptions, is less than the sum of factors based on inflation and the increased value of property in the municipality as a result of new construction. The bill also establishes a temporary Shared Revenue Advisory Council in the Department of Revenue. The council is formed after each federal decennial census, and consists of the following members: majority leader; 2) one senator appointed by the senate minority leader; 3) one representative to the assembly appointed by the assembly majority leader; 4) one representative to the assembly appointed by the assembly minority leader; 5) one representative of the League of Wisconsin Municipalities; 6) one representative of the Wisconsin Towns Association; 7) one representative of the Wisconsin Counties Association; and 8) the secretary of revenue, or the secretary’s designee. The council must study county and municipal revenue and expenditure variations among different categories of counties and municipalities based on population, review and evaluate the existing formulas for county and municipal aid and supplemental county and municipal aid, make recommendations for a formula for county and municipal aid distributions to counties and municipalities, and submit a report to the legislature containing its review, evaluations, and recommendations. The council may not make a recommendation that decreases the total amount of county and municipal aid payments and supplemental county and municipal aid payments received by any county or municipality. recommendations must take account of changes in the population and property values of counties and municipalities and include in the formula a component for distributing aid to compensate counties and municipalities that experience substantial decreases in property values. The bill also requires the council’s recommendations to include in the formula a component that improves the equity of distributions among counties and municipalities compared to the formula for distributions effective for 2001 as affected by subsequent reductions in distributions, the formula for distributions effective for 2026, and any other formula for distributions established after the bill takes effect. The council must request that the Legislative Reference Bureau prepare legislation based on the council’s recommendations and that the Legislative Fiscal Bureau prepare a fiscal analysis of that legislation. Also, under the bill, DOR must assist the council with its duties. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill provides additional supplemental county and municipal aid to cities, villages, and towns with populations over 50,000 in 2022, and establishes a temporary Shared Revenue Advisory Council that will be formed after each federal census. Beginning in 2026, these larger municipalities will receive an additional $16,257,500 in aid, with the amount increasing annually based on the percentage change in sales and use tax revenue. The bill creates a diverse council consisting of state legislators, representatives from municipal associations, and the secretary of revenue, which will study county and municipal revenue variations, review existing aid formulas, and make recommendations for future distributions. The council is specifically prohibited from recommending any changes that would decrease total aid to any county or municipality. The recommendations must account for population and property value changes, include components to compensate for substantial decreases in property values, and improve the equity of aid distributions compared to previous formulas. The council will submit a report to the legislature, request legislative drafting of its recommendations, and receive assistance from the Department of Revenue. Additionally, the bill excludes these new supplemental aid payments from calculations related to the expenditure restraint incentive program, which helps municipalities manage budget growth.
Committee Categories
Government Affairs
Sponsors (47)
Scott Allen (R)*,
Clint Anderson (D)*,
Margaret Arney (D)*,
Mike Bare (D)*,
Jill Billings (D)*,
Brienne Brown (D)*,
Ryan Clancy (D)*,
Karen DeSanto (D)*,
Ben DeSmidt (D)*,
Steve Doyle (D)*,
Jodene Emerson (D)*,
Joan Fitzgerald (D)*,
Russell Goodwin (D)*,
Alex Joers (D)*,
Tara Johnson (D)*,
Darrin Madison (D)*,
Renuka Mayadev (D)*,
Maureen McCarville (D)*,
Supreme Moore Omokunde (D)*,
Greta Neubauer (D)*,
Lori Palmeri (D)*,
Pricilla Prado (D)*,
Amaad Rivera-Wagner (D)*,
Ann Roe (D)*,
Joe Sheehan (D)*,
Christine Sinicki (D)*,
Ryan Spaude (D)*,
Shelia Stubbs (D)*,
Lisa Subeck (D)*,
Sequanna Taylor (D)*,
Angelito Tenorio (D)*,
Randy Udell (D)*,
Tim Carpenter (D),
Kristin Dassler-Alfheim (D),
Dora Drake (D),
Jodi Habush Sinykin (D),
Dianne Hesselbein (D),
LaTonya Johnson (D),
Sarah Keyeski (D),
Chris Larson (D),
Brad Pfaff (D),
Melissa Ratcliff (D),
Kelda Roys (D),
Jeff Smith (D),
Mark Spreitzer (D),
Jamie Wall (D),
Bob Wirch (D),
Last Action
Fiscal estimate received (on 12/22/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab688 |
| Fiscal Note - AB688: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/ab688/ab688_dor.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB688.pdf |
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