Shared Revenue

The 2019-2020 state budget retains the same level of funding for the city, village and town shared revenue program as the last state budget. A municipality's 2020 payments should closely match its 2019 payments. Estimated Shared Revenue and Expenditure Restraint Payments are posted on DOR’s website beginning September 15.

(We have received questions from League members about whether the cuts sought by Governor Evers to address revenue shortfalls caused by the COVID-19 pandemic means 2020 shared revenue and other state aid payments to municipalities will be reduced. The answer is the Governor may not unilaterally reduce shared revenue. A 1980 court decision, Milwaukee v. Lindner, ruled that the DOA Secretary is not authorized by Wis. Stat. sec. 16.50(2) to reduce shared revenue payments. Such an action could be accomplished only by the Legislature passing a budget adjustment bill. 

Under Wis. Stat. sec. 16.50(7), if following the enactment of the biennial budget the DOA Secretary determines that previously authorized expenditures will exceed revenues in the current or forthcoming fiscal year by more than one-half of one percent of the estimated general purpose revenue appropriations for that fiscal year, the secretary must immediately notify the governor, the presiding officers of each house of the legislature and the joint committee on finance. 

Following such notification, the governor must submit a bill containing his recommendations for correcting the imbalance between projected revenues and authorized expenditures. If the Legislature is not in a floorperiod at the time of the secretary's notification, the governor shall call a special session of the legislature to take up the matter of the projected revenue shortfall and the governor shall submit his or her bill for consideration at that session.)