The mix of tax revenues and fees that support public services must be broad enough to ensure the fiscal integrity of program support for public services. Heavy reliance on a single tax source may ignore changing fiscal, economic and program conditions, potentially threatening the viability of programs and services delivered to Wisconsin residents. The mix of tax revenues and fees must be sufficient to sustain a base level of state and local services over time. Tax base equalization has been a fundamental principle of local government finance in Wisconsin for over 30 years. The state uses its taxing authority to overcome fiscal inequities between communities and help assure a minimum level of services regardless of location.
Equalization remains a fundamental principle of government finance.
There has been an increasing interest in the potential to expand local tax options among some state and local officials. While such options may be viable, their application should be governed strictly by a specific set of criteria that examines questions of economy, reliability, equity, efficiency, and accountability. Organizational alternatives that increase intergovernmental cooperation may hold potential for new efficiencies in program delivery and administration. To encourage greater exploration of collaborative efforts among local government, the state and its local governments should develop a new set of fiscal incentives and rewards for participating government bodies. The relationship between the state and its local governments is an important one.