State aids to local units of government dropped a whopping $96 million, or almost 10%, from 2010 to 2011, according to the city.

Ouch. The numbers don’t cover every dollar that flows from the state to local taxing units, but do provide an apples to apples comparison of the change in the main sources of state aid.

The figures are on property tax bills sent out last week and appear to be reported correctly. (The city messed up the 2010 net property taxes levied on individual properties.)
Every local taxing unit took a hit, according to the property tax bill. Here’s the scoop, per the tax bills and our good friend, Microsoft Excel.

Homeowners who pay sewer, storm sewer, water, and garbage collection fees (that’s us, Milwaukee!) would be able to deduct the amounts from their state income taxes, under a bill pending in the State Legislature.

The bill has bipartisan sponsorship and the support of the City of Milwaukee, according to city and state records. It’s main author is State Rep. Josh D. Zepnick, and Assembly co-authors are David Cullen and Jason Fields, both Milwaukee Democrats, and Richard Spanbauer, an Oshkosh Republican. Senate co-sponsors are Tim Carpenter (D-Milwaukee) and Mary Lazich (R-New Berlin).

Milwaukee Ald. Joe Davis asked during a Common Council committee meeting last month whether the proposal could inspire Republican legislators to cap the amount the city could charge. City lobbyist Paul Vornholt said fees already are capped at 100% of costs, but added that the deduction proposal could draw attention to the fee issue.

“I’ll just tell you that municipalities across the state are turning to fees right now and Milwaukee is going to be joined by a whole choir of support in maintaining fees,” he told the Judiciary and Legislation Committee.

Under the proposal, the deduction would apply only to state income taxes and only to residents’ primary homes.