Oshkosh leaders press for full municipal services payment as city receives about 37.6% of entitlement

City officials and state lawmakers on Monday pressed for restoration of Wisconsin—s municipal services payment (MSP), saying Oshkosh currently receives a fraction of the funding the city is entitled to and that the shortfall directly increases local property-tax burdens.

City Manager Rebecca Grill said the city currently receives about 37.6% of the MSP entitlement. "So we're right now we're receiving 37.6% of the actual, % entitlement that we should get. So $2,700,000, only 1 a little over 1,000,000 is received by the City of Oshkosh, leaving the City of Oshkosh taxpayers to make up for the $1,700,000," Grill said.

Why it matters: Oshkosh includes large state-owned facilities whose owners do not pay local property taxes; MSP is intended as a payment in lieu of taxes to compensate municipalities. City leaders said the underfunding increases the local tax burden and complicates municipal budgeting as communities face rising baseline costs.

What officials said: Grill told representatives and senators at the council—s legislative roundtable that MSP was fully funded in earlier decades but has been reduced over time. She said the governor—s budget includes an increase that would substantially raise the city—s share and that city officials and council members have lobbied for that restoration.

Senator Christian Dazler Alfheim, who spoke at the meeting, described the item—s survival through the early rounds of budget trimming as a positive sign. "I would say if it's didn't get cut out, that's a really good sign," Alfheim said, adding that early inclusion in the governor's proposal signals some bipartisan recognition of the issue.

Legislative process: City officials were briefed on how state budgeting works and the role of the Legislature—s Joint Finance Committee (JFC). Speakers explained that even if the governor proposes funding, the JFC and floor amendments can change amounts, and proponents may offer standalone bills if an item is removed from the budget.

Local context and next steps: Council members said they planned to continue outreach to state representatives and urged residents to contact legislators. Council members said the city had passed a resolution amplifying the request and will keep advocating to regain the MSP funding the city regards as fair and necessary for tax relief.

Ending: Officials said the city will continue following the budget process through the JFC and possible standalone bills and urged continued communication between city staff, council members and legislative offices while the state budget is finalized.