Greater Madison Chamber of Commerce: Opposes Wisconsin Taxpayer Protection Amendment

“While limiting or reducing taxes is a laudable goal, it should not be enacted in such a way that jeopardizes the heart of what makes Wisconsin a great place to do business,” said GMCC President Jennifer Alexander.  “The Wisconsin Taxpayer Protection Amendment removes the opportunity for municipalities to make discretionary investments in economic development projects that contribute to economic growth and vitality and quality of life of the state and its regions. The state constitution is not a place to implement permanent limitations that are sure to have such major long term consequences.”

Area leaders, business, government and nonprofits are realizing that the major issues facing Greater Madison communities have to be tackled regionally.  The GMCC has been heavily involved in the promotion of local and regional economic development.  In order to successfully reach this goal, they have developed collaborative partnerships with area chambers of commerce, local government, and educational institutions to encourage business expansion and retention, high-tech business development, reliable energy, a quality workforce, diverse housing choices, a cost-efficient transportation system, and the availability of quality, affordable health care. 

Keeping taxes affordable for business, working families and senior citizens is important in order to keep Wisconsin an attractive place to work, live, play and do business.  However, the GMCC also strongly believes that Wisconsin taxpayers receive quality services for taxes paid.  In turn, those services are instrumental in achieving the quality of life which attracts and retains our best minds and employers.

GMCC believes that WTPA could negatively impact Wisconsin’s excellent K-12 and post-secondary education systems, which are among the best in the country.  The following highlights some possible ways:

• K-12 funding is already regulated by revenue caps and the Qualified Economic Offer which limits the salaries and benefits of school district employees.   GMCC believes that WTPA could negatively impact the ability to teach our future workforce.

• The health of the University of Wisconsin System is critical to the success of businesses statewide.  Our future leaders earn their degrees here and research of national significance is conducted here.  The “best case” scenario of WTPA’s impact on the UW System would be a reduction in appropriations proportional to the reduction in total state revenues.  It is likely, however, that greater reductions in state aid would occur.  Since tuition and fee increases are not restricted by WTPA, there will be additional pressure to raise them which will price more students out of the college education an increasing number of employers require.

• Wisconsin’s Technical College System trains much of Wisconsin’s workforce.  Currently, demand for training exceeds capacity in key industries.  State law already caps levy limits for technical colleges and requires public approval of building improvements or additions over $1 million.  Our technical colleges train police officers, firefighters, EMTs, construction workers, health care providers and others in professions requiring special skills.  Many of these professions either face labor shortages now or will in the near future.  How will this need be met if our technical college systems are hampered by WTPA?

The GMCC is also concerned about the ability of state and local governments to provide services to businesses and residents if WTPA is adopted. 

• Physical improvements to infrastructure or the construction of new buildings or roads are only part of the economic development equation for municipalities.  Economic growth is often facilitated by local government employees.  Government may be forced to cut such positions because strict revenue limits will force locals to prioritize spending towards debt service, matching funds, and emergency services leaving little or no funds for economic development staff.

• According to Denise Brown, executive director of the Colorado Bioscience Association, Colorado’s TABOR forced cuts to all but essential services during the recession of 2001 and the ensuing economic recovery period.  The state had little or no incentives available for economic development which hurt competitiveness in recruiting and retaining companies.  The loss of funds and resulting loss of opportunities for economic development is a very real concern of the Greater Madison Chamber of Commerce if TPA is approved in Wisconsin. 

“The negative consequences that passage of WTPA will have on business, education and residents far outweigh the attempt to limit taxes via constitutional amendment,” said Alexander.  “There are many unanswered questions about the proposal and its provisions and restrictions.  The GMCC encourages the Legislature to slow down and explain this bill to people so that everyone understands it and its potential impacts before it is voted upon.”