The governor accepted wholesale the recommendation that the state restructure its shared revenue program for municipalities. The changes would provide financial incentives for communities to collaborate with each other in order to stop the waste and inefficiency of duplicated and overlapping services.
The commission recommended that local governments write "Area Cooperation Compacts" with at least two other governments in at least two areas, such as law enforcement, housing, emergency services and public health. The compacts would specify a collaboration plan, performance benchmarks and cost savings. Those that do so would get "growth-sharing" payments, distributed on a per capita basis.
Since nearly two-thirds of Wisconsin's budget is aid to local governments, "an enormous amount of cash is riding on this and therefore an enormous amount of interest," says Don Kettl, a University of Wisconsin professor of public administration and political science who chaired the commission.
The program would be funded by dedicating revenue from 0.25 percent of the state sales tax. This would not be a new tax but a change in the existing per capita program. "Everyone knows communities ought to be working together to provide services," says Kettl. "If they work alone, they shouldn't expect the state to subsidize their inefficiencies."