Taxpayers in 82 school districts won’t see any relief under Scott Walker’s fiscally irresponsible politically-motivated plan to lessen the property tax increase contained in his budget, according to an analysis from the Wisconsin Taxpayers Alliance.
The nonpartisan Legislative Fiscal Bureau had previously concluded that the average homeowner would see a lower-than-previously-estimated property tax increase, a savings of about $1.08 per month, under the Walker tax plan, with higher-valued properties receiving larger credits. LFB also noted that the Walker tax plan would grow the state’s structural deficit by $180 million, a 33 percent increase.
Legislative Democrats offered a more fiscally responsible alternative proposal that provides actual tax relief for all homeowners. The Democrats’ plan reduces the Republican structural deficit by $53 million and puts an additional $100 million into the state’s rainy day fund, in part from $119 million in savings realized from accepting federal funds to expand Medicaid.
“Property tax relief for middle-class homeowners is something Democrats and Republicans can agree on, which is why Scott Walker’s plan was passed with bipartisan support despite its shortcomings,” Democratic Party of Wisconsin Chair Mike Tate said Friday. “While there are some savings, thousands of taxpayers in 82 school districts across the state won’t see any relief whatsoever and our deficit will grow under Walker’s plan. It’s unfortunate that Republicans refused to even consider a Democratic proposal that saves more working folks money while helping to curb the record levels of debt Scott Walker has forced on our state.”
Read the LFB memo on the Democratic Property Tax Cut here.