SB178: Bill Text

LRB-2688/1

MES:amn&wlj

2019 - 2020 LEGISLATURE

2019 Senate BILL 178

April 24, 2019 - Introduced by Senators Kooyenga, Bewley, Cowles, Kapenga, Olsen and Stroebel, cosponsored by Representatives Gundrum, Brooks, Brandtjen, Duchow, Edming, Felzkowski, Horlacher, Katsma, Kerkman, Knodl, Kulp, Loudenbeck, Macco, Quinn, Ramthun, Sanfelippo, Skowronski, Sortwell, Spiros, Steffen, Thiesfeldt and Tusler. Referred to Committee on Government Operations, Technology and Consumer Protection.

SB178,1,12 An Act to renumber 59.60 (2) (a); to amend 59.53 (6) (a) 2., 59.54 (27) (a), 59.60 (4) (intro.), 59.60 (4) (a), 59.60 (4) (b), 59.60 (5) (intro.), 59.60 (5) (a), 59.60 (6) (b) 2., 59.60 (6) (b) 3., 59.60 (6) (c), 59.60 (7), 59.60 (8) (a), 59.60 (10), 65.01, 65.02 (5) (intro.), 65.02 (6) (a), 65.02 (6) (b) (intro.), 65.02 (8) (intro.), 65.02 (10), 65.02 (11), 65.03 (1), 65.04 (1), 65.04 (2), 65.04 (4), 65.04 (5), 65.05 (4), 65.05 (5), 65.05 (8), 65.05 (9), 65.06 (1), 65.06 (5) (intro.), 65.06 (14), 65.06 (15), 65.20 (1) (a), 65.20 (1) (b), 65.20 (1) (c), 65.20 (1) (d), 65.20 (1) (e), 65.20 (1) (g), 65.20 (1) (h), 65.90 (1), 65.90 (2), 65.90 (3) (a) (intro.), 65.90 (3) (a) 1., 65.90 (3) (b) (intro.), 65.90 (3) (bm), 65.90 (4), 65.90 (5) (a), 65.90 (5) (b) and 65.90 (6) (intro.); and to create 59.60 (2) (ae), 59.60 (3s), 65.02 (5m), 65.025, 65.90 (1m) and 65.90 (5) (c) of the statutes; relating to: authorizing a biennial budget procedure for political subdivisions.

Analysis by the Legislative Reference Bureau

This bill authorizes political subdivisions to adopt and use a biennial budgetary procedure. The bill applies to cities, including a first class city (presently only Milwaukee), villages, towns, and counties. If a political subdivision decides to adopt a biennial budget, it must adopt the budget in an odd-numbered year. Generally, a political subdivision that adopts such a budget must follow the same current law procedures regarding public hearings, the contents of budget summaries, and information regarding expected revenues and expenditures that it would be required to follow if it adopted an annual budget. A political subdivision that adopts a biennial budget procedure may decide to return to adopting an annual budget procedure.

Current law specifies a particular annual budgetary procedure that is required for counties with a population of 750,000 or more, although current law authorizes any other county with a county executive or county administrator to use those particular procedures as well. Under the bill, such larger counties may also adopt a biennial budget, and may return to an annual budget. Similarly, current law also specifies a particular budget procedure for first class cities, which other cities may also use. Current law also authorizes a first class city to adopt an executive budget system, under which the mayor performs budget preparation functions otherwise performed by the city's board of estimates. Under the bill, any first class city may use the biennial budget process as its budget method.

For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB178,1 Section 1 . 59.53 (6) (a) 2. of the statutes is amended to read:

SB178,3,2 59.53 (6) (a) 2. If on June 1, 1989, a county has 1.0 or more full-time equivalent attorney positions that have primary responsibility for handling cases described in par. (b), as determined by the district attorney of the prosecutorial unit, the county shall establish and maintain a support enforcement office consisting of support enforcement attorneys and office personnel. In counties having a population of less than 750,000, a county budget under s. 65.90 shall list the proposed appropriation under s. 65.90 (2) for the support enforcement office separate from any other office, department or activity. In counties having a population of 750,000 or more, a county budget shall treat a support enforcement office as a department, as defined in s. 59.60 (2) (a) (as), separate from all other departments, and administered by the county executive. If a county ceases to employ 1.0 or more full-time equivalent attorney positions in the office, the county may provide support enforcement under subd. 1.

SB178,2 Section 2 . 59.54 (27) (a) of the statutes is amended to read:

SB178,3,5 59.54 (27) (a) Definition. In this subsection, “board" includes any department, as defined in s. 59.60 (2) (a) (as).

SB178,3 Section 3 . 59.60 (2) (a) of the statutes is renumbered 59.60 (2) (as).

SB178,4 Section 4 . 59.60 (2) (ae) of the statutes is created to read:

SB178,3,11 59.60 (2) (ae) “Budget period” means 2 consecutive fiscal years covered by a biennial budget adopted by a county that has acted under sub. (3s), or an annual budget for any other county that has not acted to adopt a biennial budget under sub. (3s).

SB178,5 Section 5 . 59.60 (3s) of the statutes is created to read:

SB178,3,18 59.60 (3s) Biennial budget procedures. (a) A county with a population of 750,000 or more may adopt a biennial budget by implementing the procedures under this subsection and using the procedures under this section. If a county chooses to adopt a biennial budget, it shall adopt such a budget in an odd-numbered year for the next 2 fiscal years that follow immediately the year in which the budget is adopted.

SB178,3,22 (b) For a county to proceed under this subsection, the board must adopt a resolution or enact an ordinance stating its intent to adopt a biennial budget. Once a resolution is adopted or an ordinance is enacted, such an action takes effect, and may not be reconsidered or repealed, except as provided in par. (c).

SB178,4,2 (c) A board that has adopted a biennial budget procedure as provided in this subsection may return to the use of an annual budget procedure if the board, by a two-thirds majority vote, adopts a resolution or enacts an ordinance stating its intent to adopt an annual budget.

SB178,4,4 (d) A board or a committee authorized by the board may, at any time, decrease appropriation amounts in a biennial budget.

SB178,4,7 (e) In October or November of an even-numbered year, the board may change any appropriation or revenue amount in relation to the 2nd year of the biennial budget by a simple majority vote of the members-elect.

SB178,6 Section 6 . 59.60 (4) (intro.) of the statutes is amended to read:

SB178,4,11 59.60 (4) Submission of annual budget requests. (intro.) On or before the date that the director specifies, but not later than July 15, each department shall annually submit to the director in the form that the director specifies:

SB178,7 Section 7 . 59.60 (4) (a) of the statutes is amended to read:

SB178,4,14 59.60 (4) (a) The department's estimated revenues and expenditures for the ensuing fiscal year for the ensuing budget period.

SB178,8 Section 8 . 59.60 (4) (b) of the statutes is amended to read:

SB178,4,17 59.60 (4) (b) The estimated cost of any capital improvements pending or proposed for the ensuing fiscal year and for the next 4 5 fiscal years.

SB178,9 Section 9 . 59.60 (5) (intro.) of the statutes is amended to read:

SB178,4,21 59.60 (5) Compilation of budget requests. (intro.) Not later than August 15 of each the year in which the budget is enacted, the director shall submit to the county executive or county administrator and to the board:

SB178,10 Section 10 . 59.60 (5) (a) of the statutes is amended to read:

SB178,4,23 59.60 (5) (a) The annual budget estimates of each department.

SB178,11 Section 11 . 59.60 (6) (b) 2. of the statutes is amended to read:

SB178,5,5 59.60 (6) (b) 2. A comparative statement by organization unit and principal object of expenditure showing the actual expenditures of the preceding fiscal year, the appropriations and estimated expenditures for the fiscal year currently ending, and the recommended appropriations for the fiscal year budget period next succeeding.

SB178,12 Section 12 . 59.60 (6) (b) 3. of the statutes is amended to read:

SB178,5,11 59.60 (6) (b) 3. A comparative statement of the actual revenues from all sources including property taxes during the preceding fiscal year, the anticipated revenues and the estimated revenues for the fiscal year currently ending, and the anticipated revenues for the fiscal year budget period next succeeding including any surplus from the preceding fiscal year not otherwise appropriated under sub. (9).

SB178,13 Section 13 . 59.60 (6) (c) of the statutes is amended to read:

SB178,5,14 59.60 (6) (c) The anticipated revenues for the fiscal year budget period next succeeding shall be equal in amount to the recommended appropriations.

SB178,14 Section 14 . 59.60 (7) of the statutes is amended to read:

SB178,6,14 59.60 (7) Publication of budget and public hearing. The board shall refer the executive's or administrator's budget to the finance committee and such committee shall publish as a class 1 notice, under ch. 985, a summary of the executive's or administrator's budget and comparative figures together with a statement of the county's bonded indebtedness, in the 2 daily newspapers having the largest circulation in the county, and shall make available to the general public reprinted copies of the summary as published. The publication shall also state the date, hour, and place of the public hearing to be held by the board on such executive's or administrator's budget. The board shall, not less fewer than 14 days after publication of the summary of the executive's or administrator's budget, but not later than the first Monday in November of each year budget period and prior to the adoption of the property tax levy, hold a public hearing on such executive's or administrator's budget, at which time citizens may appear and express their opinions. After such public hearing, and on or before the annual meeting, the finance committee shall submit to the board its recommendations for amendments to the executive's or administrator's budget, if any, and the board shall adopt the budget with such changes as it considers proper and advisable. Subject to sub. (7e), the board of a county with a population of at least 750,000 may not adopt a budget in which the total amount of budgeted expenditures related to the compensation of county board members, and to any other costs that are directly related to the operation and functioning of the county board, including staff, is greater than 0.4 percent of the county portion of the tax levy for that year to which the budget applies. When so adopted, the sums provided shall, subject to the provisions of sub. (8), constitute legal appropriations and anticipated revenues for the ensuing year.

SB178,15 Section 15 . 59.60 (8) (a) of the statutes is amended to read:

SB178,7,3 59.60 (8) (a) At the request of the head of any department, and after receiving the recommendation of the county executive or county administrator, the finance committee may, at any time during the fiscal year budget period, transfer any unencumbered appropriation balance or portion thereof between principal objects of expenditures within a department; but no transfers shall be made of appropriations originating from bond funds unless the purpose for which the bonds were issued has been fulfilled or abandoned. If the county executive or county administrator fails to make a recommendation within 10 days after the submission of a request for transfer, the finance committee may act upon the request without his or her recommendation. If more than one department is under the jurisdiction of the same board or commission or under the same general management, the group of departments may be considered as though they were a single unit with respect to transfers of appropriations within the group.

SB178,16 Section 16 . 59.60 (10) of the statutes is amended to read:

SB178,7,12 59.60 (10) Ordinance increasing salaries; new positions; when effective. No ordinance or resolution authorizing the creation of new or additional positions or increasing salaries shall become effective in any fiscal year budget period until an appropriation of funds for such purpose is made or the ordinance or resolution contains a provision for the transfer of funds if required. All such ordinances or resolutions which do not require an appropriation or transfer of funds shall state therein the specific account or accounts in which funds are available for such purposes.

SB178,17 Section 17 . 65.01 of the statutes is amended to read:

SB178,7,18 65.01 Application of this chapter. The common council of any city of the 2nd, 3rd, or 4th class may by ordinance adopted by three-fourths of all its members accept the provisions of ss. 65.02, 65.025, 65.03 and 65.04 which when so accepted shall be in full force and effect as to any such city. Except as above provided ss. 65.01 to 65.20 shall apply only to cities of the 1st class.

SB178,18 Section 18 . 65.02 (5) (intro.) of the statutes is amended to read:

SB178,7,22 65.02 (5) Budget. (intro.) The budget shall provide a complete financial plan for the ensuing fiscal year budget period. It shall contain in tabular form, for each fiscal year:

SB178,19 Section 19 . 65.02 (5m) of the statutes is created to read:

SB178,8,2 65.02 (5m) Budget period. In ss. 65.01 to 65.20, “budget period” means 2 consecutive fiscal years covered by a biennial budget adopted by a city that has acted under s. 62.025, or an annual budget for any other city that has not acted to adopt a biennial budget under s. 65.025.

SB178,20 Section 20 . 65.02 (6) (a) of the statutes is amended to read:

SB178,8,8 65.02 (6) (a) The For a budget period, the budget summary shall itemize the principal sources of anticipated revenues and shall state separately the amount to be raised by property tax, and the proposed expenditures of each department, bureau, board and commission in such manner as to present to the public a simple and clear summary of the detailed estimates of the budget.

SB178,21 Section 21 . 65.02 (6) (b) (intro.) of the statutes is amended to read:

SB178,8,11 65.02 (6) (b) (intro.) The For a budget period, the budget summary shall also include all of the following:

SB178,22 Section 22 . 65.02 (8) (intro.) of the statutes is amended to read:

SB178,8,14 65.02 (8) Proposed expenditures. (intro.) Separate provision For a budget period, separate provisions shall be included in the proposed budget for at least:

SB178,23 Section 23 . 65.02 (10) of the statutes is amended to read:

SB178,8,19 65.02 (10) Proposed expenditures; comparison with other years. The board of estimates shall direct that there be placed opposite the several items of proposed expenditures for the ensuing year budget period, adequate comparisons with the budgets and expenditures of other years.

SB178,24 Section 24 . 65.02 (11) of the statutes is amended to read:

SB178,8,24 65.02 (11) Anticipated revenues; comparison with other years. The board of estimates shall direct that there be placed opposite the several items of anticipated revenues for the ensuing year budget period, adequate comparisons with the anticipated revenues and receipts of other years.

SB178,25 Section 25 . 65.025 of the statutes is created to read:

SB178,9,5 65.025 Biennial budget procedures. (1) A city may adopt a biennial budget by implementing the procedures under this section and using the procedures under ss. 65.02 to 65.20. If a city chooses to adopt a biennial budget, it shall adopt such a budget in an odd-numbered year for the next 2 fiscal years that follow immediately the year in which the budget is adopted.

SB178,9,9 (2) For a city to proceed under this section, the common council must adopt a resolution or enact an ordinance stating its intent to adopt a biennial budget. Once a resolution is adopted or an ordinance is enacted, such an action takes effect, and may not be reconsidered or repealed, except as provided in sub. (3).

SB178,9,13 (3) A common council that has adopted a biennial budget procedure as provided in this section may return to the use of an annual budget procedure if the common council, by a two-thirds majority vote, adopts a resolution or enacts an ordinance stating its intent to adopt an annual budget.

SB178,9,15 (4) A common council or a committee authorized by the common council may, at any time, decrease appropriation amounts in a biennial budget.

SB178,9,19 (5) In October or November of an even-numbered year, the common council may change any appropriation or revenue amount in relation to the 2nd year of the biennial budget by a simple majority vote of the members-elect, as that term is defined in s. 59.001 (2m).

SB178,26 Section 26 . 65.03 (1) of the statutes is amended to read:

SB178,9,25 65.03 (1) It shall be the duty of each department to file with the secretary of the board of estimates not later than August 1 of each year on forms approved by the board of estimates an estimate in detail of the department's needs for the ensuing fiscal year, including a statement of any permanent improvements to be made and an estimate of expenditures therefor, and including such information supplied in such form as the board of estimates may direct. If the city is using biennial budgeting, the forms described in this subsection shall also detail the changes between the first and 2nd year of the biennium.

SB178,27 Section 27 . 65.04 (1) of the statutes is amended to read:

SB178,10,14 65.04 (1) Meeting; report of estimates. The board of estimates shall meet not later than September 10 of each year. The secretary shall place before the board the reports of estimates filed with the secretary by the departments together with the comptroller's statement of anticipated revenues for the ensuing year budget period, or the 2nd year of a biennium in an even-numbered year, and the adequate comparisons with other years as provided in s. 65.02 (5) to (11). The budget summary shall be published forthwith in at least one and not more than 2 daily newspapers having the largest circulation in the city as a class 1 notice, under ch. 985, and in the proceedings of the common council; and a copy of the entire proposed budget shall be available for public inspection in the office of the city comptroller.

SB178,28 Section 28 . 65.04 (2) of the statutes is amended to read:

SB178,11,2 65.04 (2) Proposed budget; publication of summary. From the estimates before it the board shall make and submit to the common council, on or before October 25 each year budget period, a proposed budget setting forth in detail the amounts proposed to be spent by each department and the various purposes therefor and the amounts of money for each purpose it is proposed shall be appropriated by the council. The proposed budget shall comply with s. 65.02 (5) to (11). The budget summary shall be published forthwith in at least one and not more than 2 daily newspapers having the largest circulation in the city as a class 1 notice, under ch. 985, and the proposed budget summary shall be printed forthwith in the proceedings of the common council. If any department fails to file its estimates as herein provided the board shall make a proposed budget for such department specifying the purposes for which and the amount of funds such department may expend.

SB178,29 Section 29 . 65.04 (4) of the statutes is amended to read:

SB178,11,9 65.04 (4) Contingent fund. In addition to the purposes required to be set forth in detail the board may provide a contingent fund for such sum as they may deem reasonably necessary for emergency and other purposes that may arise during the year budget period requiring the expenditure of money in addition to the sums provided for the several purposes, and for purposes for which no express provision is made in the budget.

SB178,30 Section 30 . 65.04 (5) of the statutes is amended to read:

SB178,11,14 65.04 (5) Bonds; mortgage certificates. The board shall also include in its budget the amount of bonds, the purposes therefor, and the required mortgage certificates to be issued during the fiscal year budget period, except such bonds as are authorized to be omitted by express provision of law.

SB178,31 Section 31 . 65.05 (4) of the statutes is amended to read: