PRAT Legislation

While the prospects for enacting a premier resort area tax for Sturgeon Bay have dimmed somewhat, I’m still forging ahead with legislation that would authorize the city to implement a 0.5 percent PRAT within its municipal boundaries.

I had originally tried to establish the Sturgeon Bay PRAT through a motion in the 2019-21 state budget, but members of the Joint Finance Committee ultimately decided not to include it in the spending plan, along with similar proposals from several other municipalities.

The Joint Finance Committee’s main issue was that too many communities were seeking the PRAT and its members didn’t want to be tasked with picking “winners and losers.”

Because of that large number, I prefer, and will pursue next session, legislation that would allow any municipality to pass the PRAT if the proposal is first supported by its voting population through a referendum. I believe that is the fairest option for all of our communities.

In the meantime, I recently introduced a bill with Sen. Tom Tiffany and Reps. Rob Swearingen and Mary Felzkowski that gives the cities of Sturgeon Bay and Tomahawk and the town of Minocqua the ability to implement the PRAT within their municipal jurisdictions.

A little while ago I told Sturgeon Bay officials that, if city voters passed a referendum endorsing the tax, I would do everything within my power to get the PRAT proposal signed into law. A referendum on the tax was approved last year by nearly 71 percent of the voters.

A municipality or county may not declare itself to be a "premier resort area" unless at least 40 percent of the equalized value of the taxable property within its municipal boundaries is used by tourism-related retailers. Wisconsin Dells is the only municipality in the state that meets that threshold, but several others, including a few in Northern Door County, have enacted it through a waiver. A PRAT is included on specific tourist-type products and services.

Sturgeon Bay also does not meet the 40 percent requirement, but I am requesting the waiver because the impact tourism is having on our region is too large to ignore. Tourists spent a total of $366.6 million in Door County last year, the seventh-highest county total in the entire state.

The city is seeking the tax to share the costs of street maintenance and reconstruction projects with visitors who also use our local infrastructure. An eight-member citizens committee that was formed in 2017 determined the city needs to increase street replacement and maintenance spending by approximately $720,000 per year. That would allow for the city to change the target cycle for street resurfacing projects from 55 years to only 25 years.

With many communities struggling to keep up with maintaining their roads, I believe the PRAT is one of the most equitable solutions for ensuring the tourists who visit our area are also helping pay for repairing our transportation system.

Historic Rainy Day Fund

I am proud to announce that, through our sound budgeting practices and fiscally-responsible tax reforms over the past eight years, the state of Wisconsin is collecting $76 million more in taxes than what was anticipated over the past fiscal year. 

According to a new report from the nonpartisan Legislative Fiscal Bureau, general fund tax collections for the 2018-19 fiscal year have come in at $17.3 billion, an increase of 7.4 percent from the previous year.

Under state law, nearly half of any surplus must go to our state's rainy day account, which is officially named the Wisconsin Budget Stabilization Fund. Because of that $76 million in unexpected tax revenue, our budget stabilization fund now sits at $649 million, the largest amount in our state's history.

It is extremely important for us to have a robust rainy day fund so that we can be better suited to manage recessions or fiscal emergencies. Larger budget stabilization funds can also lead to better credit ratings for states, which lower their costs for repaying their bonds. 

Being a watchful steward of your taxpayer dollars is a responsibility I take very seriously, and I am pleased to see that our efforts are helping Wisconsin continue to move forward.

To see the full report from the Legislative Fiscal Bureau, please click here.

Local School Grant  

I am excited to share with you that the Wisconsin Department of Workforce Development is awarding $500,000 in Advanced Manufacturing Technical Education Equipment Grants to 16 school districts across the state, and one of them just so happens to be in our very own backyard.

The Luxemburg-Casco School District will be receiving $50,000 through the grant program to install equipment that will better prepare our students for careers in advanced manufacturing. More specifically, the money will be used to purchase a computer numerical controlled lathe, a computer numerical controlled vertical mill, an ironworker and an air compressor.

The $50,000 grant is tied for the highest amount given to any school district this year.

The purpose of the annual Advanced Manufacturing Technical Education Equipment Grants is to address Wisconsin's skilled worker shortage by increasing the number of high schoolers trained in advanced manufacturing fields, accelerating student entry into the workforce and preparing our youth for stable careers in a modern, global and competitive economy.

The $50,000 grant being distributed to the Luxemburg-Casco School District is expected to benefit almost 40 students starting this academic year through expanded manufacturing coursework.

While vocational education is starting to become more popular across the country, our state is still experiencing a workforce shortage in the manufacturing industry, and it's largely due to a lack of skilled workers in that particular field. Several school districts in our area have been leaders in technical training. These grants should help us make further significant progress by reaching our future workers at a younger age and offering them valuable, hands-on experience. 

If you are interested in seeing the full list of school districts that received an Advanced Manufacturing Technical Education Equipment Grant this year, please click on this link. If you would like to know more about the program or learn how to apply for funding in future years, please click here.

Upcoming District Events

What: Sister Bay Marina Fest
Where: Sister Bay Marina, Bayshore Drive, Sister Bay, WI
When: Saturday, Aug. 31, through Monday, Sept. 2
Details: "Live entertainment and music, food & drinks, classic boats, fireworks and more!"

What: Newport Wilderness Days
Where: Newport State Park, 475 County Highway NP, Ellison Bay, WI
When: Saturday, Aug. 31, and Sunday, Sept. 1 
Details: "Volunteers lead hikes and programs Labor Day weekend, covering many areas of interest, including, geology, flora and fauna, trees or mushrooms. It kicks off on Saturday morning with Coffee on the Beach. Free. Park vehicle sticker required."

What: Farm and Craft Market
Where: Market Square, 421 Michigan St., Sturgeon Bay, WI
When: Saturday, Aug. 31, from 8:30 a.m. to 12 p.m.
Details: "Large assortment of locally grown produce as well as foods and baked goods. Hand crafted items. Market accepts FoodShare benefits. For more information visit sturgeonbaywi.org."