Oshkosh council urges state to restore 100% municipal services payment; says $1.7M would be saved locally

The Oshkosh Common Council on April 22 approved Resolution 25-211, urging the Wisconsin Joint Finance Committee to fully fund the municipal services payment (MSP) program in the 2025-27 state biennial budget.

Council members said the MSP reimburses municipalities for services to state-owned properties that do not pay property taxes. Council member Jennifer Nichols, who praised the city manager for proposing the resolution, told the council the MSP program originally reimbursed municipalities at 100% when it began in 1981 but has declined; currently municipalities receive about 37.6% of the eligible amount. Nichols said raising the reimbursement to 100% would mean an estimated "$1,700,000" in reduced local tax burden for Oshkosh taxpayers.

City staff and council members discussed the kinds of state-owned properties that contribute to the city’s tax-exempt property base, mentioning the University of Wisconsin–Oshkosh and a state correctional facility as examples of large parcels that use city services but do not pay property taxes. The council noted a recent state budget surplus and asked state legislators to consider directing funds to fully reimburse municipalities.

Council members encouraged residents to contact their state representatives and the Joint Finance Committee; councilors said public comments to the committee (via legis.wisconsin.gov/topics/budgetcomments) and attendance at upcoming listening sessions could influence outcomes. City staff said the council planned to share materials through city communication channels and also expected to meet with local legislators in person.

The resolution passed on a recorded roll call, 7-0. Council members framed the resolution as a statewide issue — more than 300 municipalities have state-owned property that affects local levies — and urged constituent outreach to Madison.