Municipal Spending for Development Is Up According to WISTAX Report

A recent analysis of 2015 spending patterns revealed that, for the second year in a row, municipal spending for development jumped more than 20 percent compared to the prior year. At the same time, in response to a question about future growth drivers, city and village leaders cited good schools and plentiful job opportunities as the most important factors necessary to attract citizens in the future.

The findings are taken from the Second Annual State of Cities and Villages Report, prepared for the League of Wisconsin Municipalities by the Wisconsin Taxpayers Alliance (WISTAX). The report combines an analysis of the most-recently-available data on city and village spending (calendar year 2015) and a 2017 survey of city and village leaders. The results are encouraging.

Development spending is typically five to eight percent of a municipal budget, encompassing the hard and soft public costs of preparing for new residential, commercial or industrial development. Prior to 2014, development spending had declined 16 percent from 2008-2013. The uptick signals renewed optimism, but more than that, it shows that Wisconsin’s economic recovery has taken hold in many parts of the state.

But this harbinger of recovery is not uniform. The state’s largest cities (those with 50,000 or more residents) increased spending for new development by a stunning 60 percent in 2014 and another 20 percent in 2015. Cities in the next tier (populations between 30,000 and 50,000) increased 31 percent and 36 percent in 2014 and 2015 respectively. At the same time, however, development-related spending declined in both years for Wisconsin’s smallest cities and villages (those with populations below 2,000). Prosperity hasn’t yet reached many of Wisconsin’s rural municipalities.

As WISTAX President Todd Berry put it in an August column in the League’s The Municipality magazine, despite the fiscal and regulatory challenges facing municipal officials, the report “reveals a ‘keep-calm-and-carry-on’ spirit.”

The report reinforces what many of us already know: that local governments are being pragmatic and cooperative when it comes to building a 21st Century Wisconsin. Local leaders have plenty of ideas, are willing to put their hard-earned local resources to work where it counts, and are looking for both private- and public-sector partners.

Read the report here:

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