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Bill > SB707


WI SB707

WI SB707
Replacing the expenditure restraint incentive program with a municipality payment program and making an appropriation. (FE)


summary

Introduced
12/02/2025
In Committee
12/02/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

This bill ends payments to municipalities for the expenditure restraint incentive program in 2026 and begins payments to municipalities for the municipality payment program in 2027. The municipality payment program, created by the bill, provides payments to municipalities that received an expenditure restraint incentive program payment in 2024, 2025, or 2026. A municipality’s payment each year is equal to the highest expenditure restraint incentive program payment that the municipality received during the period from 2024 to 2026. Under current law, generally, a municipality is eligible to receive an expenditure restraint incentive program payment if its property tax levy is greater than 5 mills and if the annual increase in its municipal budget 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. LRB-5604/1 KP:skw 2025 - 2026 Legislature SENATE BILL 707 For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill replaces the existing Expenditure Restraint Incentive Program with a new Municipality Payment Program, which will provide consistent financial support to municipalities starting in 2027. Under the new program, any municipality that received an expenditure restraint incentive payment in 2024, 2025, or 2026 will continue to receive an annual payment equal to the highest amount they received during that three-year period. The bill phases out the current program by stopping payments under the old system after 2026 and establishing the new payment mechanism beginning in 2027. Technically, this involves amending several sections of Wisconsin statutes to rename accounts, update payment references, and create a new section (79.06) that outlines the municipality payment program's structure. The changes will ensure that municipalities that previously qualified for the expenditure restraint incentive payments will continue to receive similar financial support, providing predictability and stability in local government funding. The bill takes effect immediately, with some specific provisions scheduled to take effect on July 1, 2026, and July 1, 2027.

Committee Categories

Transportation and Infrastructure

Sponsors (13)

Last Action

Fiscal estimate received (on 12/22/2025)

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