What Fiscal Responsibility & Fiscal Restraint Looks Like

Washington County has kept its levy flat for at least the last 8-10 years.  We've done this through exercising fiscal restraint and fiscal responsibility.  Below are some of the key principles we have focused on.  Some of these may sound remedial, yet so many governments ignore these principles. 

Overriding Principles

"The problem is not that government taxes too little, the problem is that government spends to much" - Ronald Reagan

In Washington County, we live within our means.

Annual (Bi-Annual) Budgeting

Most local governments, when it comes time to budget, start with their expenses.  They then invest their efforts in trying to stretch their revenue to cover those expenses.  When that fails, they raise taxes to cover the shortfall.  They remind me of the carpenter whose only tool is a hammer.  That carpenter will quickly come to see every problem as a nail.  These municipalities only know how to address budget problems by raising taxes, so every budget gap starts to look like a revenue shortfall.

Our County has taken the opposite approach.  We start with our revenues, and identify ways to shrink our expenses to fit within those revenues.  That approach has allowed us to keep our levy essentially flat since 2014 despite starting each budget cycle with a $2.5 million dollar gap between expenses and revenues. 

We also recognize the distinct difference between recurring expenses and one-time expenses.  If we cut a $100,000 one-time expense from the budget, that's a nice savings for that year, but it has no effect beyond that.  If we cut a $100,000 recurring expense from the budget, that's a nice savings for every year going forward.  Over 10 years, it is $1 million in savings, over 20 years it is $2 million.  Likewise, if we add in a new expense, and it is a recurring expense, that's a new expense that will need to be funded every year going forward.  A new $100,000 recurring expense we add in will cost us $2 million over the next 20 years.

Rule #1: Start with our current revenue, and finds ways to trim our expenses to fit within that revenue.

Rule #2: During budgeting, think of recurring expenses not just in terms of their cost in the current budget cycle, but also in terms of their long term financial impact.

Recurring Money vs. One-Time Money

One thing our county has been very focused on is pairing one-time revenue with one-time expenses.  The "American Rescue Act" was a great example, where we received a ton of one-time money (roughly $26 million).  Many governments took that one-time money and used it to justify all sorts of new recurring expenses, including pay raises or additional staff.  Once the one-time money runs out, they still have the recurring expense, with no revenue to fund that expense.  Our county has always been disciplined about recurring expenses, they are only allowed if they are paired with a recurring revenue source.

Rule #3: don't fund recurring expenses with one time money.

Staffing

One of the largest expense items in any government is staffing.  Our county has been diligent about finding efficiencies and reducing staff.  In other government agencies, especially at the state and federal level, all too often when positions are no longer needed, no action is taken to correct the overstaffing.  

Rule #4: We will never create a position unless we eliminate a position (even if that position is eliminated from another department).

Rule #5: When we eliminate a position, we will never use that as an excuse to create an additional position.

Shared Services Creates Efficiencies

In many communities in Wisconsin, multiple government agencies perform the same tasks.  In Washington County, we have focused on finding ways to eliminate that duplication of services, and we continue to seek out more.  If towns, villages, and cities and doing the exact same thing we are, let's combine forces and either save the taxpayers some money or allow the municipality to use that savings to fund other things.  We reject the old axiom that many other governments have lived by, "why have one, if you can have 2 at twice the price."

Rule #6:  Seek out cooperative agreements with local municipalities that reduce duplication of services and provide a net savings to the taxpayer.

Borrowing Money

Many local governments, when they borrow money, use it as an opportunity to raise taxes.  Sometimes, governments fund recurring expenses through borrowed money (which is one-time money).  Washington County has adopted a different approach.  First, when possible, we plan for major expenses and save up for them.  Second, when we do borrow money, we attempt to pay for that out of our existing operational budget.  This fits our "live within our means" approach to government.

Rule #7:  Do not ever borrow money to pay for recurring expenses.

Rule #8:  Work diligently to fund any borrowing from within the current budget.  Raising taxes to fund borrowing should be a last resort.

Samaritan's New Prospective Buyer

 

Last night we heard from, in open session, a new potential buyer for Samaritan.  This was a very tough decision.  Some of the factors I considered last night:

• The emotional roller-coaster ride our residents and staff have been on, which cannot continue.
• The staff reaction to this buyer, which was positive,  Several staff members from Samaritan attended the meeting, and seemed excited by what they were hearing.  I could see that they had a positive reaction to this buyer.
• The values this buyer espouses, which align well with the values of Samaritan and our community, particularly in regards to the way they treat staff and care for residents.
• The fact that this buyer was willing to stand before the board, introduce himself, tells us about his organization and what they do.  He took questions and comments from us, and from the Samaritan staff who were present.  He seemed like a person of high integrity.
• The work they have done at the three other facilities they have purchased, where they took nursing homes that were severely struggling with regulatory compliance issues and turned them around.  They have invested heavily in those facilities to make them nice places for the residents to live and for staff to work in.  Those investments include facilities upgrades, as well as working to secure a stable staff.
• The fact that the building and property are part of this deal.  When combined with how they have handled the other homes they have acquired, it is highly likely that they will keep our residents in the current building, like they have with their other nursing homes.  If I am correct in that prediction, the stability this will provide to our residents will be a huge blessing.
• The fact that we don't have the votes to prevent a sale (we would need a majority and don't have it) and that we definitely do not have anywhere close to enough votes to renovate the facility, which would require issuing a bond (we would need at least 3/4s of the board, or 16 votes).

In the end, I supported this transaction for those reasons.  Had I opposed it, it still would have passed.  I hope this turns out to be the blessing for our community that I think it will be.

Fire EMS Study

It is important for people who aspire to be elected officials to proceed with correct facts.  That is why I was disappointed with the letter to the editor in the Daily News on 1/24/24 from Mary Ann Rzeszutek, candidate for County Board, in which she totally misunderstands the County’s Fire & EMS study.  

As the Chairman of the County's Public Safety Committee, I wanted to clear up any confusion.  I submitted a letter to the editor in response, which was printed today (1/25/24) but I also wanted to go into more detail than 300 words would allow, hence why I am also posting this blog entry.

Fire/EMS Study

The Fire and EMS study was initiated based on outreach from the various municipal fire departments in our county.  They reached out to the County, asking for help.  

The study will be reviewing fire and EMS (Emergency Medical Services) in the towns and villages, many of which are struggling with staffing and funding issues.  They rely heavily on volunteer firefighters, and have seen a decrease in community members who are volunteering in this role.  Volunteer firefighting has been a staple of our County, and can be very successful, when they have the volunteers.  As well, their equipment is aging, and new fire engines can cost upwards of $500,000.  Many townships lack the financial resources to replace their aging equipment.  Many of these townships only have a couple hundred homes, so $500,000 places a huge burden on a small number of taxpayers.

With an aging population, EMS calls to homes are seeing an increase.  More people are needing emergency medical assistance in their homes, and the fire departments provide that EMS response.  The is adding to the strain the fire departments are experiencing.

The problems the towns and villages are facing have impacted the West Bend Fire Department, who has been picking up calls for service outside of its traditional service area.  The West Bend Fire Department shares the recognition that county support is needed to solve these issues that the towns and villages are facing.

The study being done includes the formation of a task force composed of 9 community members, including several current and retired firefighters.  The committee is designed to be a cross-section of the community.  8 members have been picked out so far (as of the 1/1/24 Public Safety Committee meeting), those being:

• Chuck Beistle (FTA) – City of West Bend
• Tony Burgard (FCA) – Richfield/Hartford
• Brian Heckendorf – Jackson
• Terry Kohl – Richfield
• Paul Stephans – Hartford (retired)
• Sue Wolf (EMSA) – Addison
• Dean Wolter – Germantown
• Troy Zagel – Town of West Bend
• Additional Member to be Named - rural

911 dispatching

Since Mary Ann brought up the issue of 911 dispatching, it is worth beginning a conversation and sharing some information.  The County is not going to force a dispatching consolidation at all, but we do want the City to see this opportunity to work together for the benefit of everyone who lives in West Bend. 

The introduction of Nextgen 911 has prompted dramatical changes in the delivery of dispatching state-wide.  It wasn't all that long ago that each community has their own dispatch center.  Now, in the entire state of Wisconsin, currently only about 25 communities still have their own dispatch center, called secondary dispatch centers, and that number continues to shrink.  The model the state is transitioning to focuses on having 1 dispatch center per county, called a "primary" dispatch center.  In our County, like many counties, the County Sheriff's dispatch center is the primary 911 dispatch center. West Bend’s dispatch center is a secondary dispatch center, meaning cell-phone calls go first to the county and are answered by a County dispatcher.  The calls then get rerouted to West Bend’s dispatch center.  

The State of Wisconsin will be offering grant funding for dispatching upgrades related to Nextgen 911, but only to the primary dispatch center in each county.  This means that whenever updated software or equipment is released, Washington County's dispatch center will get those updates for free, funded by those state grants.  Unfortunately, West Bend would have to fund these upgrades on its own.  We don't know how frequent or how expensive these updates will be.

Hartford and Germantown are currently transitioning to county dispatching.  This is a free service the County offers to all municipalities.  Hartford should be completed shortly, and then the County will begin transitioning Germantown onto its dispatch center, which will take about a year to complete.

West Bend spends roughly $1 million dollars per year on its dispatch center, duplicating a service they could get for free from the County.  That’s money that could be used to fund road repairs or a new fire station.  That's the value that comes with sharing services, your tax dollars can bring a greater benefit to the community.  We all want better roads, and we all recognize a need for a new firehouse for the West Bend Firefighters.  

The County is not going to force this consolidation at all, but we do want the City to see this opportunity to work together for the benefit of everyone who lives in West Bend.  If West Bend chooses to consolidate their dispatch center with the County, we could hire the City’s dispatchers and have a dedicated dispatch desk for West Bend calls, staffed by a former West Bend dispatcher.

There is a lot of room for discussion on the benefits of West Bend consolidating dispatching as well as the benefits of West Bend maintaining a secondary dispatch center.  For that reason, I appreciate Mary Ann engaging in this conversation.  Ultimately, the City of West Bend will make its own decision on when it will chose to consolidate with the county.

Closing Thought

I like the cooperation we are seeing with the West Bend Fire department along with all of the fire departments in the County, on the Fire/EMS study.  I hope that the City of West Bend will decide to consolidate dispatching with the County, to the benefit of the taxpayers.

County Board Supervisor Linda Gurath understands all of these issues, and that’s why I am encouraging residents of District 5 to reelect Linda.  She has been an asset to the County Board, on this and other issues.

UW Extension (What is it, how is it different and separate from UWWC, and what is the county doing with it?)

There is a lot of confusion about what UW Extension is, and how it is different from UWWC (now named UWM in Washington County).  In fact, before I was first elected to the County Board, I didn't really understand very well about UW Extension and how they support and oversee 4H, even though my kids were had already been in 4H for several years.

Please note, throughout this article I will refer to UWM in Washington County as UWWC, as that is how most of us relate our 2 year college.  UWM only became involved with UWWC and renamed them in 2018.

What is UW Extension

U.W. Extension is a division of UW Madison.  They operate in all 72 counties.  They don't offer any degree programs or credit-bearing classes, nor do they receive any tuition support.  Instead, they do outreach-style education and support for 6 program missions.  Those are:

• Youth development
• Agricultural education
• Community development
• Health
• Natural resources
• Families & finance.   

4H is run through UW Extension as part of their youth development mission.  In fact, a lot of people don't realize that 4H in Wisconsin is run entirely through UW Extension.

U.W. Extension also has no campus.  Instead, they have a state office building on the U.W. Madison campus along with local offices in each of Wisconsin's 72 counties.  In Washington County, U.W. Extension has a small suite of offices in the County's Public Agency Building on Washington Avenue.

They are funded by the 72 counties, in partnership with U.W. who also contributes to their funding structure.  There is some federal funding for the various missions as well. 

Is UW Extension connected to UWWC (UWM in Washington County)?

The short answer is "no."  

UW Extension operates completely under the purview of U.W. Madison and is completely separate from any of the other U.W. schools.  Washington County sends about $400,000 per year to the U.W. Board of Regents, which is then used to support U.W. Extension's operations in our County.  Simply put, U.W. Extension is U.W. Madison's presence in all 72 counties in Wisconsin, and is not directly affiliated with UWWC (though all U.W. schools fall under the domain of the U.W. Board of Regents) .

What is the County doing with U.W. Extension?

County officials have received consistent feedback from the agricultural community concerning U.W. Extension.  That feedback is not positive.  U.W. Extension's priorities are not matching up with the needs of our community.  Other counties in Wisconsin are having a similar experience, and are taking or considering taking action similar to what Washington County has done.

Because of this feedback, we have decided to review the county's funding of U.W. Extension.  While we will keep 4H fully funded, we want to review the current arrangement with U.W. Extension, U.W. Madison, and the U.W. Board of Regents.  A steering committee is being put together, to study the situation and recommend a course of action.  Key community leaders and stakeholders will be part of this committee.  That committee may propose that we transition to a new model that has a stronger emphasis on local control and Washington County priorities, while preserving our strong roots in 4H and strengthening the agricultural education mission.  A new partner may be needed, one that will replace U.W. Extension with an organization that will support our local needs and priorities.

Once the committee makes it recommendation and it is implemented, the funding will then be awarded accordingly.  In other words, in the short term we are withholding the funding, preventing it from going to the U.W. Board of Regents, while we figure out what the right path forward is for the future of youth education and agricultural education.  In the long term, all of the funding will remain with the key missions (such as 4H) without regard to whether the partner in those missions changes.

To be absolutely clear, 4H will remain fully funded throughout this endeavor.

What is my view on this issue?

Madison often operates in a bubble, deciding their own priorities and then trying to push them onto the rest of the state.  A restructuring that provides more local control, so that we can make sure that the needs of our communities are being met, appears to be needed.  For that reason, I support preventing the funding from being passed on the the U.W. Board of Regents, and instead want that funding reserved for the potential new partner for these missions.

Preserving a strong 4H youth development program is important to many members of the County Board, including myself.  My 2 kids enjoyed Rocketry and Archery, and also had opportunities to experience other areas of interest including youth leadership, photography, model building, and cake decorating.  They each went to Space Camp in Huntsville, Alabama through 4H.

What is Happening with Sales Tax Dollars

There is a false rumor going around that Washington County sales tax dollars are going to Milwaukee.  There is no truth to this.

There are some changes happening with the sales tax, and here is a quick breakdown.

County Sales Tax

The county collects half of a percent (1/2%) on all eligible sales.  100% of this money stays in Washington County.  The county has always shared a portion of this with municipalities in the form of shared services.  For the 2024-2025 budget, the county increased the portion it shares by $3 million per year will cities, villages, and towns in Washington County.  This revenue is being shared through grants and shared services, to ensuring that taxpayers will receive 100% of the benefit.  In West bend, this will be $1 million per year in grants to fund the replacement of lead laterals and the resulting road repairs, as nearly 850 homes in West bend have their water supplied through lead laterals.

State Sales Tax

The state collects five percent (5%) on all eligible sales.  The State gives back a portion of this to all local governments, including counties, cities, villages, and towns.  This is commonly referred to as shared revenue.  For 2024-2025, the State is increasing this shared revenue to all communities.  Washington County is getting an extra $1.4 million and Milwaukee County is getting an extra $7 million.  presumably, this is proportionate to the sales tax generated in these communities.

Local Sales Tax Increases for Milwaukee

The State is allowing some additional taxing privileges just to Milwaukee.  The city is being allowed to create its own sales tax (in Wisconsin only counties have sales tax) of two percent (2%).  The State is also allowing Milwaukee County to increase its sales tax from half of percent (1/2%) to a full one percent (1%).  They are increasing their tax to .9% (9/10%).  No other city or county in Wisconsin is being granted this privilege.  So if you buy something in the city of Milwaukee, the sales tax will now be eight percent (7.%) and if you buy something anywhere else in Milwaukee County, it will be six percent (5.9%).

Update: Eisenbahn Trail remains a potential route for Amtrak

On Thursday, the Federal Government announced that they are granting the Wisconsin Department of Transportations request to fund a study for the viability of running an Amtrak line from Milwaukee to Green Bay.  

Since preserving the Eisenbahn trail is a priority for me, I immediately reached out to our legislative liaison, who contacted the State Department of Transportation to see if the Eisenbahn Trail was still a potential route.  

Initially, based on somewhat vague information published by several news media outlets, it looked like the study would focus on a route through Slinger and Allenton, using existing rail lines. Unfortunately, we received word back late Friday afternoon that the study would not exclude the Eisenbahn trail.  So the County will need to continue its efforts to preserve the Eisenbahn trail.  Here is the response from the D.O.T.

Key aspects of the planned rail route:

Proposed Route Basics

• It would take 2 hours and 50 minutes to traverse the route by rail.  this compares to 1 hour and 45 minutes by car, according to google maps.
• It is planned to make 3 round trips daily.
• Two likely routes between Milwaukee and Fond Du lac are the existing rail line through Slinger/Allenton and the Eisenbahn Trail.
• If the Eisenbahn Trail is selected as the route, it appears that it would be the only new section of rail needing construction, as the remainder of the route would likely use existing rail lines.
• Several interchanges north of Appleton might need signal upgrades.
• Amtrak currently runs a bus service between Green Bay and Milwaukee, called Amtrak Throughway Connection Service, 2 times per day and averages 38% occupancy.

Proposed Stops

• It would have stops in Fond Du lac, Oshkosh, and Appleton.
• No stop is currently planned for West Bend.
• A previous version of this plan included a map showing the potential for stops in West Bend, Grandville Station (Milwaukee's northwest side), and Kaukauna.
• American Family Field wants a railroad station, although that station would have the option to service one or more routes from a couple different potential or existing routes.
• Any additional stop will likely add 10-20 minutes to the total travel time (per additional stop) between Milwaukee and Green Bay).

Eisenbahn Trail

• The Eisenbahn trail follows a decommissioned rail corridor, as part of the "Rails to trails" program.
• The Eisenbahn Trail is about 25 miles long, with about 13 miles in Washington County.
• The Eisenbahn Trail officially opened in 2006.
• The Eisenbahn Trail has been a cornerstone for economic revitalization for West Bend, with several major developments built just footsteps from the trail, and will likely be central to Kewaskum's efforts to revitalize their downtown.

The Passenger Rail Study

• The feasibility study is 100% federally funded.
• After the study is complete, any construction would be funded by a federal grant and would likely require some state funding.

Other Relevant Information

• Passenger rail service from West Bend to Milwaukee was discontinued due to low ridership.
• In 2023, Commuter Bus service from West Bend to Milwaukee was discontinued due to low ridership.
• Once the study is complete, if tis project is approved by the legislature and Governor, it would take 6-10 years to implement the proposed rail service.

It should also be noted that passenger rail line proposals that have been built have generally failed to come close to meeting ridership projections.

*Note-As I think of key details related to this issue, I am adding them to this post.

Re-election Campaign Announcement

I am proud to announce my intent to be re-elected to the Washington County Board of Supervisors, representing District 4 in West Bend. I have served on the County Board for 8 years, and chaired the Public Safety Committee for the last 4 years.  I have always strived to lead the discussion in ensuring a fiscally responsible and sustainable County Government for our residents.

During this last term, I was a leader in the efforts to preserve the Samaritan health center, which provides skilled nursing care for our impoverished senior and disabled community, by working to identify ways to make Samaritan a financially self-sustaining operation.  Samaritan is a vital part of our community.

I plan to be a leader in the effort to preserve the Eisenbahn Trail, which has become a cornerstone of our community and a key component for revitalizing our downtown.  Later this month, the federal government will announce its decision to approve or deny a request by the Wisconsin D.O.T. to fund a study of a possible Amtrak line from Milwaukee to Green Bay, and the Eisenbahn Trail is a possible route.  Passenger rail service from West Bend was discontinued due to low ridership, and this year the County discontinued our commuter bus route to Milwaukee due to low ridership.  Preserving the Eisenbahn Trail must be the priority.

I am also proud that the County will be sharing $3 million in sales tax revenue with the City of West Bend over the next 3 years, via a grant to replace lead lateral lines.  This will ensure that residents have safe drinking water. As part of this project, the roads in those same neighborhoods will need to be dug up and repaired, making this program a double-win for residents in these neighborhoods and support for the city’s road repair efforts.  West Bend has roughly 850 homes that have lead laterals, and a majority of them are in my district, so this issue is especially important to me. 

I am also a big supporter of shared services.  When governments share services, we reduce duplication, and can use the savings to increase the value taxpayers receive for their tax dollars.  Hartford and Germantown have each started the process of combining 911 dispatching with the county, allowing those communities to reprioritize those funds in a way that better meets taxpayer needs. I hope over the next 2 years to find ways in which we can partner with the City of West Bend to share services, which will free up financial resources so that the City can increase their road repair budget or fund an additional firehouse.

I ask for you support in my re-election campaign.