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Oshkosh officials push for fuller state municipal-services payments as budget talks proceed
Summary
City leaders told state legislators that Oshkosh receives about 37.6% of the municipal services payment it is entitled to, leaving roughly $1.7 million to be covered by local taxpayers; lawmakers said the governor's budget includes an increase that remains under review by the Joint Finance Committee.
Oshkosh city leaders pressed state lawmakers on May 19 to support restoring a larger share of the municipal services payment (MSP), the state's payment-in-lieu-of-taxes for state-owned facilities inside municipalities.
City Manager Rebecca Grill said the state historically funded MSP fully but that Oshkosh now receives "37.6% of the actual ... entitlement" and that the city's $2.7 million entitlement yields "only a little over $1,000,000" in payments, leaving about $1.7 million shifted onto local taxpayers.
The shortfall surfaced as lawmakers described the budget process in Madison and the status of proposals affecting municipal and county aid. Grill said the governor included more funding in his budget and city officials have circulated a council resolution asking legislators to preserve an increase that would bring Oshkosh closer to full entitlement.
"The governor did have it in his budget. So we've been trying to get people to contact their legislators and just get the word out so people understand exactly what it is," Grill said, framing the issue as "an issue of fairness for the taxpayers in Oshkosh and the other municipalities that have state facilities in them."
State legislators at the meeting described the budget process and the role of the Joint Finance Committee (JFC). Representative Nate Gustafson (50th Assembly District) said the fact the line item remained through early JFC review was a positive sign.
"If it's didn't get cut out, that's a really good sign," said Senator Christian Alfheim, adding that many items introduced by the governor are trimmed during committee review. Lawmakers also warned that items removed from the budget can be reintroduced as separate bills after the budget process.
City officials and council members urged continued pressure on legislators. Council Member Brad Spanbier said Oshkosh is the third-largest city with state facilities after Madison and Milwaukee and that restoring MSP would provide tax relief for residents hit by a recent revaluation.
Grill said the governor's proposal would tie future MSP increases to state sales tax growth beginning in fiscal year 2026-27. Lawmakers at the meeting recommended both tracking the budget process and preparing stand-alone legislation if necessary.
Officials asked legislators to continue advocating for a larger restoration of MSP; legislators said they would continue to monitor the JFC process and consider follow-up bills if the budget does not secure the increase.
