A SERVICE OF THE WISCONSIN TAXPAYERS ALLIANCE. A monthly review of Wisconsin government, taxes and public finance. The Wisconsin

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1 A SERVICE OF THE WISCONSIN TAXPAYERS ALLIANCE A monthly review of Wisconsin government, taxes and public finance The Wisconsin Taxpayer Executive Administrat Coordinato Board Size Also in this issue: State GPR up Slightly State Ranks High in NSF Grants Readership Survey (see center insert)? Options for Organization As of January 1,, 10 Wisconsin counties had a county executive, 14 had a county administrator and 48 used an administrative coordinator. Salaries ranged from $50,000 to more than $100,000. board sizes ranged from seven to 38. Smaller county boards appear to spend more than larger boards. government in Wisconsin dates back to 1818 when the state was still a territory. Then, three counties covered the entire state. Today, Wisconsin has 72 counties with land areas ranging from 232 square miles (Ozaukee) to 1,545 square miles (Marathon). State law allows counties several options in terms of organization. For the head administrator, they can use an elected county executive, an appointed county administrator, or a designated administrative coordinator. Further, all counties have an elected county board. The board sizes vary, though state law mandates maximum sizes that depend on county population. In many ways, counties are extensions of state government. Since early in state history, counties October Vol. 71 No. 10 Continued on page 3

2 FAST FACTS State GPR up Slightly State general purpose revenue (GPR) rose modestly in fiscal. After declining 8.1% in fiscal 2001 and 0.4% in 2002, Wisconsin GPR increased 1.8% in to $10.2 billion, according to the state s Annual Fiscal Report. The total was 0.2% below the January Legislative Fiscal Bureau (LFB) estimate. GPR consists of various state taxes, including: individual and corporate income; general sales and use; inheritance, estate and gift; liquor and tobacco; public utility and insurance company; and miscellaneous taxes. Of the three major taxes individual income, corporate income and sales corporate income taxes rose the most, increasing 4.7% to $526.5 million. Individual income taxes climbed 1.5% to $5.1 billion, and sales taxes were up 1.1% to $3.7 billion. These three taxes combined for 91.3% of GPR in, down from 91.6% in 2002 and 92.3% in Insurance company taxes, which are generally based on premiums, increased 19.6% to $114.9 million. This amount was $9.9 million, or 9.4% more than the January LFB estimate. Public utility taxes (up 9.8% to $276.8 million) and miscellaneous taxes (8.0%, $67.5 million) also rose significantly. Excise taxes (1.9%, $354.8 million) were up slightly, while inheritance, estate and gift taxes fell (-16.8%, $68.7 million). The decline in the latter category is partly attributable to a federal law change that reduced state revenues.! UNITED STATES POSTAL SERVICE STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION 01. Publication title The Wisconsin Taxpayer. 02. Publication number Filing date October 1,. 04. Issue frequency Monthly. 05. No. of issues published annually Annual subscription price $ Mailing address of known office of publication 335 W. Wilson St., Madison, Dane, Wisconsin Mailing address of headquarters or general business office of publisher 335 W. Wilson St., Madison, Dane, Wisconsin Publisher Wisconsin Taxpayers Alliance, 335 W. Wilson St., Madison, Dane, Wisconsin Editor Beulah M. Poulter, 335 W. Wilson St., Madison, Dane, Wisconsin Managing Editor n/a 10. The owner is the Wisconsin Taxpayers Alliance (a nonstock corporation), 335 W. Wilson St., Madison, Wisconsin Known bondholders, mortgagees, and other security holders owning or holding 1% or more of total amount of bonds, mortgages, or other securities none. 12. The purpose, function and nonprofit status of this organization and the exempt status for federal income tax purposes have not changed during preceding 12 months. Average Single No. Copies Issue Each Issue Published Extent During Nearest and Nature Preceding to Filing of Circulation 12 Months Date A. Total No. of Copies (net press run)... 8,810 8,691 B. Paid and/or Requested Circulation 1. Paid/Requested Outside- Mail Subscriptions... 5,688 5, Paid In- Subscriptions Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Non-USPS Paid Distribution Other Classes Mailed Through the USPS C. Total Paid and/or Requested Circulation... 6,496 6,171 D. Free Distribution (including samples) by Mail E. Free Distribution Outside the Mail F. Total Free Distribution (sum of D and E)... 1, G. Total Distribution (sum of C and F)... 7,632 6,876 H. Copies Not Distributed... 1,178 1,815 I. Total sum of G and H... 8,810 8,691 J. Percent Paid and/or Requested Circulation (C/G x 100) % 89.7% I certify that all information furnished is true and complete. Beulah M. Poulter, Editor The Wisconsin Taxpayer October Vol. 71 No. 10 Publication Number USPS Periodical postage paid at Madison, Wisconsin Subscription Price: One Year, $12; Three Years, $28 Published each month by the Wisconsin Taxpayers Alliance Postmaster: Send address changes to The Wisconsin Taxpayer, 335 West Wilson Street, Madison, Wisconsin phone: fax: wistax@wistax.org website: Officers and Board of Directors: Dennis J. Kuester, Chair, Milwaukee; Dale R. Schuh, Vice Chair, Stevens Point; Jere D. McGaffey, Secretary-Treasurer, Milwaukee M.D. Bugher, Madison; M.A. Cullen, Janesville; A.P. Diotte, Janesville; C.W. Knox, Jefferson; S.W. Orr, Jr., Wausau; R.J. O Toole, Milwaukee; P.M. Platten, III, Green Bay; J.D. Quick, Manitowoc; J.B. Torinus, Jr., West Bend; W.T. Walker, Racine; J.B. Williams, Milwaukee; R.L. Fitzsimonds (Emeritus), Milwaukee Staff: Todd A. Berry, President; Joan Bleifuhs; Sandy Denson; Melissa DoBas; Jo A. Egelhoff, Development Director; Dale J. Knapp, Research Director; Sandra Mumm, Business Manager; Beulah M. Poulter, Operations Director; Richard G. Sheil, Research Associate The Wisconsin Taxpayers Alliance, founded in 1932, is the state s oldest and most respected private governmentresearch organization. Through its publications, civic lectures and school talks, WISTAX aims to improve Wisconsin government through citizen education. Nonprofit, nonpartisan and independently funded, WISTAX is not affiliated with any group national, state or local and receives no government support.

3 TAXPAYER FEATURE REPORT Options for Organization Continued from front cover have provided services on behalf of state government, such as law enforcement, recording of legal documents, prosecution of crimes and courts. Today, the state requires counties to administer additional services, including social services programs, and highway maintenance and construction. In 2001, Wisconsin counties spent more than $3.28 billion, up 52.7% from This issue of The Wisconsin Taxpayer presents an overview of county organization and administration in Wisconsin. The first part of the report provides survey results summarizing administration type, board size and compensation. The second part examines the relationships between: spending levels and type of administration; and spending levels and board size. FORMS OF GOVERNMENT Wisconsin statutes provide for three forms of county administration: county executive, county administrator and administrative coordinator. An administrative coordinator can be either full time or part time. Only the county executive form provides for a legislative-executive form of government, where the executive is elected and has veto power. Currently, 10 Wisconsin counties have a county executive, 14 have a county administrator and 48 have an administrative coordinator. Of the administrative coordinators, 18 are full time and 30 are part time. (See chart on page 4.) Administration Varies by Population Smallest, Median and Largest (Excl. Milwaukee) by Type of Administration 500, , , ,000 50, , ,272 84, ,588 43,789 13, ,929 41,366 4,593 Executive Administrator F.T. Admin. Coord. There is a modest relationship between county population and the type of organization (see chart above). The largest counties tend to have a county executive. Milwaukee county is required by state statute to have an executive. Of the state s 10 most populous counties, all but Marathon and Rock currently have a county executive. These two have a county administrator. However, of the next 26 largest counties, two (Fond du Lac and Manitowoc) have county executives, six have county administrators, 10 have full-time administrative coordinators and eight have part-time administrative coordinators. NOTE Unless otherwise stated, information on county organization reported in this Wisconsin Taxpayer is as of January 1,. 87,599 22,496 5,191 P.T. Admin. Coord. October Vol. 71 No. 10 Page 3

4 Administrative Coordinator Most Prevalent Number of Counties by Administration Type P.T. Admin. Coord. 30 Exec. 10 F.T. Admin. Coord. 18 Admin. 14 Among the smallest 10 counties, two have county administrators, three have full-time administrative coordinators and five have part-time administrative coordinators. Executive Either by referendum or by county board resolution, counties may choose to have an elected county executive. Duties and Powers. State law lists the duties and powers of the county executive. Among them are the: coordination and direction of all administrative and management functions; observation, enforcement and administration of county, state and federal laws pertaining to the county; and appointment and supervision of all unelected county department heads. Arguably, the most substantive power granted to the county executive is the veto. Most county board resolutions must be approved or vetoed in total. However, appropriations may be approved or vetoed in part, similar to the line-item veto. This gives the county executive increased power over county spending. A veto can be overridden by a two-thirds vote of the county board. Trends. Milwaukee county, the first to have a county executive, has had the office since 1962, when it was required to do so by state law. Manitowoc county changed to a county executive form in 2002, the most recent to do so. Prior to that, the most recent was Waukesha county in The most populous counties in the state are most likely to use a county executive (see table on page 5). Manitowoc, with a population of just over 84,000, is the smallest county in the state with a county executive. The median (half larger, half smaller) population of a county with an executive is 167,272. As shown in the chart on page 3, that is larger than the largest county with any other form of administration. Administrator Fourteen counties have an appointed administrator. The office can be created by referendum or board resolution. The administrator is appointed by a majority vote of the county board. If a board member is appointed as administrator, he or she can no longer remain on the county board. The board may remove the administrator at any time it deems his or her conduct unsatisfactory. Duties and Powers. Like the county executive, the duties and powers of the county administrator are delineated by state statute. An administrator has duties and responsibilities similar to a county executive, including: appointment and supervision of all unelected department heads; and coordination and direction of administrative and management functions. The county administrator also has budget authority, although he or she lacks veto power. Thus, the administrator is more accountable to the county board than is a county executive. Trends. In 1986, only four counties had a county administrator. Currently, 14 counties do. Counties that have recently changed to the administrator form include Barron Page 4 The Wisconsin Taxpayer

5 Administration, Population and Executive Salaries Admin. Coordinator - Part-Time Appointee Admin. Coordinator - Full-Time Coord. Salary Appointee Adams 20,452 bd. chair Langlade 21,056 bd. chair Chippewa 57,358 bd. chair Monroe 42,053 bd. chair Clark 33,939 bd. chair Oneida 37,458 bd. chair Columbia 53,862 clerk Pepin 7,502 controller Crawford 17,404 bd. chair Portage 68,677 bd. chair Dodge 87,599 bd. chair Price 15,889 bd. chair Florence 5,191 clerk Richland 18,058 clerk Forest 10,155 bd. chair Rusk 15,340 clerk Grant 50,242 bd. chair Sawyer 16,736 bd. chair Green 34,671 clerk Taylor 19,727 h.r. dir. Green Lake 19,250 clerk Trempealeau 27,599 bd. chair Iowa 23,334 bd. chair Vernon 28,663 bd. chair Jackson 19,538 bd. chair Vilas 21,658 bd. chair Juneau 25,125 bd. chair Waupaca 52,843 clerk Lafayette 16,245 bd. chair Wood 75,951 bd. chair Coord. Salary Douglas 43,575 $83,379 Pierce 38,115 $79,000 Dunn 41,278 84,896 Polk 43,204 76,996 Iron 6,936 60,000 St. Croix 70, ,058 La Crosse 108,795 87,847 Sauk 57,328 74,741 Lincoln 30,019 66,058 Shawano 41,454 70,394 Marquette 14,888 58,979 Sheboygan 114,693 85,701 Menominee 4,593 52,786 Washburn 16,565 68,736 Oconto 37,279 67,270 Washington 121,929 92,456 Ozaukee 84,516 86,258 Waushara 24,656 69,555 Administrator Executive Admin. Salary Ashland 16,919 $50,000 Barron 45,883 na Bayfield 15,383 75,000 Buffalo 13,975 65,250 Burnett 16,131 90,000 Calumet 43,612 83,709 Door 28,819 70,000 Eau Claire 95,904 95,000 Jefferson 77,811 84,000 Kewaunee 20,648 64,890 Marathon 128,823 91,416 Marinette 43,965 70,207 Rock 154,588 82,535 Walworth 95, ,535 Exec. Salary Brown 234,660 $75,690 Dane 445,253 90,000 Fond du Lac 99,205 77,250 Kenosha 154,234 75,922 Manitowoc 84,020 62,000 Milwaukee 941,301 80,000 Outagamie 167,272 78,994 Racine 191,079 82,000 Waukesha 371,189 79,771 Winnebago 160,177 63,757 (), Walworth (2002), Bayfield and Buffalo (both 2001), and Kewaunee (2000). Several small counties use a county administrator: Buffalo (13,975); Bayfield (15,383); and Burnett (16,131). Several of the state s larger counties also use this form of administration: Eau Claire (95,904); Marathon (128,823); Rock (154,588); and Walworth (95,630). Administrative Coordinator As of January 1, 1987, each county board that had not created the position of county executive or county administrator was required, by state statute, to designate an appointed or elected official to be administrative coordinator. Of Wisconsin s 72 counties, 48 have a coordinator. Of that total, 18 employ the coordinator on a full-time basis. For counties with a part-time coordinator, the most common appointee is the county board chair (21 counties, see table above). Seven counties appoint the county clerk to serve in this position. In Pepin, the county controller serves in this position and, in Taylor, the October Vol. 71 No. 10 Page 5

6 position is filled by the human resources director. Under state law, the responsibilities of the administrative coordinator are to coordinate all administrative and management functions of county government not otherwise vested by law in boards or commissions, or in other elected officers. Unlike the county executive or administrator, state statutes list no specific duties or powers of the coordinator. Annual salaries for full-time county executives, administrators and coordinators range from $50,000 in Ashland county to $114,000 in St. Croix. Trends. Many of the state s smallest counties use an administrative coordinator. These include Menominee (4,593, full time), Florence (5,191, part time), Iron (6,936, full time), Pepin (7,502, part time) and Forest (10,155, part time). The largest county with an administrative coordinator is Washington (121,929). Other large counties with administrative coordinators are Sheboygan (114,693) and La Crosse (108,795). All three use full-time coordinators. Several counties have recently moved away from an administrative coordinator. From 1997 to, the number of counties with a coordinator declined from 55 to 48. Since 1997, Barron, Bayfield, Door and Kewaunee counties have switched from part-time coordinator to county administrator. Buffalo, Calumet and Walworth counties moved from full-time coordinator to county administrator. Seven counties changed from a part-time to a full-time coordinator: Douglas, Iron, Ozaukee, Pierce, Polk, Sheboygan and Washburn. Salaries and Benefits Annual salaries for full-time executives, administrators and administrative coordinators vary widely. They range from $50,000 for the Ashland county administrator to over $114,000 for the St. Croix administrative coordinator. Executives and Administrators. The median salary for county administrators ($82,535) is higher than that for county executives ($78,122). The highest county executive salary is in Dane county ($90,000). However, there are four counties with administrators earning at least that much: Burnett ($90,000); Marathon ($91,416); Eau Claire ($95,000); and Walworth ($103,535). The lowest county executive salary is in Manitowoc county ($62,000); the lowest administrator salary is in Ashland ($50,000). All county executives and administrators are provided health and retirement benefits. At least six counties with executives or administrators offer dental insurance. Some counties may offer dental as part of the health insurance package. Nine counties offer life insurance as part of their benefit packages. Administrative Coordinators. Not surprisingly, the lowest median annual salary is for the full-time administrative coordinator position ($75,868). The coordinator is typically used in smaller counties where associated costs have to be spread over a smaller population. Thus, a lower salary is more likely there. Second, in some counties, administrative coordinators might not have as many responsibilities as county executives or administrators. This would also serve to reduce annual salaries. The highest administrative coordinator salary is in St. Croix county ($114,058), while the lowest is in Menominee ($52,786). All of the full-time administrative coordinators have health and retirement ben- Page 6 The Wisconsin Taxpayer

7 2000 No. Board Membership, Changes and Population Board of Supervisors % of Stat. Max Chg Chg No. Board of Supervisors % of Stat. Max Chg Chg. Adams 18, % 0 0 Marathon 125, % -1 1 Ashland 16, % 0 0 Marinette 43, % 0 0 Barron 44, % 0 0 Marquette 15, % 0 0 Bayfield 15, % 0-6 Menominee 4,562 7 na 0 0 Brown 226, % 2-22 Milwaukee 940, na 0 0 Buffalo 13, % 0 1 Monroe 40, % -4-2 Burnett 15, % 0 0 Oconto 35, % 0 0 Calumet 40, % 0 4 Oneida 36, % 0 1 Chippewa 55, % 0-2 Outagamie 160, % -3-5 Clark 33, % 0 0 Ozaukee 82, % -1 0 Columbia 52, % 0 0 Pepin 7, % 0 0 Crawford 17, % 0 0 Pierce 36, % 0 0 Dane 426, % -2-2 Polk 41, % 0-2 Dodge 85, % 0 0 Portage 67, % 0-4 Door 27, % 1 0 Price 15, % 0 0 Douglas 43, % -2 0 Racine 188, % -8-1 Dunn 39, % 0 0 Richland 17, % 0 0 Eau Claire 93, % 0 0 Rock 152, % 0 0 Florence 5, % 0 0 Rusk 15, % 0 0 Fond du Lac 97, % 0-1 St. Croix 63, % 0 0 Forest 10, % 0-1 Sauk 55, % 0 0 Grant 49, % 0-1 Sawyer 16, % 0 0 Green 33, % 2 0 Shawano 40, % 0 0 Green Lake 19, % 0 0 Sheboygan 112, % 0 0 Iowa 22, % 0 0 Taylor 19, % 0 0 Iron 6, % 0-4 Trempealeau 27, % -4-2 Jackson 19, % 0 0 Vernon 28, % 0 0 Jefferson 74, % 0 0 Vilas 21, % 0 0 Juneau 24, % 0 0 Walworth 93, % Kenosha 149, % 1 0 Washburn 16, % 0 0 Kewaunee 20, % 1 0 Washington 117, % 0 0 La Crosse 107, % 1 0 Waukesha 360, % 0 0 Lafayette 16, % 0 0 Waupaca 51, % 0 0 Langlade 20, % 0 0 Waushara 23, % 0 3 Lincoln 29, % 0 0 Winnebago 156, % 0-7 Manitowoc 82, % 0-6 Wood 75, % 0 0 efits. Several, including those in Dunn, Menominee, Pierce, Washburn and Waushara, are also provided life insurance. Information was not collected on pay for part-time administrative coordinators. However, such pay may be reflected in the salary for the primary position. October Vol. 71 No. 10 Page 7

8 COUNTY BOARDS To a limited extent, the size of county boards (except Milwaukee and Menominee) is regulated by state statute. State law specifies the maximum number of supervisors a county may have based on county population as determined by the most recent U.S. census. Counties within 2% of the minimum population for the next most populous group can use that maximum for establishing the number of supervisors. Of the 15 counties with county boards at their maximum legal size in, 13 have populations under 25,000. The population ranges and supervisor maximums are: under 25, supervisors; 25,000 to 49, supervisors; 50,000 to 99, supervisors; and 100,000 to 499, supervisors. Menominee has only one town and state law provides that its town board, which is limited to no more than seven members, also serves as its county board. The current board has seven members. State statutes do not place a minimum or maximum board size on Milwaukee county. However, single-member districts are required and the districts must be substantially equal in population. Milwaukee currently has a 25-member board. By Size Currently, only 15 counties are at their statutory maximums: Ashland, Burnett, Forest, Green, Green Lake, Iowa, Juneau, Langlade, Oconto, Price, Richland, Rusk, Vilas, Washburn and Waushara. Grant county had a 2000 population of 49,597 and, thus, because it was within 2% of 50,000, could have increased its board size from 31 to a maximum of 39. Smaller counties are more likely to have the maximum number of supervisors than larger counties (see table on page 7). Thirteen of the 26 counties with populations less than 25,000 (excluding Menominee) are at their upper limit. Overall, counties in this population group are at 88.3% of their statutory limit, averaging 18.5 supervisors. These counties average one supervisor for every 910 residents. Of the 17 counties with 2000 populations between 25,000 and 49,999 (excluding Grant, which had a statutory maximum board size of 39), only two are at their upper limit. In total, these counties are at 81.9% of their maximum, averaging 25.1 supervisors. They average one supervisor for every 1,506 residents. Of the 27 counties with populations of 50,000 or more (including Grant but excluding Milwaukee), none are at their statutory maximums. The counties nearest their 39- supervisor maximum are: Wood (38); Dodge (37); and Fond du Lac (36). Counties with populations from 50,000 to 99,999 average 78.6% of their maximum, or 30.7 supervisors. These 15 counties average one supervisor for every 2,415 residents. The state s most populous counties are farthest below their statutory limits. The 12 counties with populations of 100,000 or more (excluding Milwaukee) average only 69% of the statutory maximum, or 32.4 supervisors. This is an average of one supervisor per 6,048 residents in these counties. Changes. A total of 14 counties have changed the sizes of their county boards since 1997: six added members, while eight reduced the number of board members. Of the six counties with larger board sizes, four added one supervisor (Door, Kenosha, Kewaunee and La Crosse) and two counties (Brown and Green) added two. Page 8 The Wisconsin Taxpayer

9 Some counties have significantly downsized their county boards since In 2002, Walworth county reduced its board from 35 to 25 members, and Trempealeau county cut its board from 21 to 17 seats. In 2000, Racine county reduced its board from 31 to 23. Other counties that trimmed board size since 1997 are Dane (from 39 to 37), Douglas (30 to 28), Marathon (39 to 38), Monroe (28 to 24), Outagamie (39 to 36) and Ozaukee (32 to 31). Even broader changes have occurred since Brown county currently has 20 fewer supervisors than in 1986; Outagamie has eight fewer; and Winnebago has seven fewer. Nine counties currently have larger boards than in 1986 Buffalo, Calumet, Door, Green, Kenosha, Kewaunee, La Crosse, Oneida and Waushara. Supervisor Compensation supervisor compensation varies significantly. Pay tends to be higher in larger counties. In Milwaukee county, the only county with a full-time board, supervisors are paid approximately $52,000 annually. Waukesha county s part-time supervisors receive annual compensation near $9,000. Methods of Compensation. Smaller counties tend to pay supervisors on a per diem or per meeting basis. For example, Grant county pays supervisors $20 for evening meetings and $25 for daytime meetings, with a limit of one payment per day. Similarly, Marquette county pays $50 per meeting, with a limit of one payment per day. Some counties pay supervisors an annual salary plus a per diem amount. In Dane county, supervisors are paid approximately $7,000 per year plus $30 per meeting. Lesspopulous Wood county pays supervisors $100 per month plus $40 per meeting, up to a maximum of 125 meetings per year. A complete listing of supervisor compensation can be found in the Facts & Figures section of the Wisconsin Taxpayers Alliance website ( Board Chair. Pay is typically higher for the county board chair. For example, the Waukesha county board chair earns more than $50,000 per year. In Jefferson county, supervisors are paid $600 annually, but the board chair earns $6,600. In Waupaca county, supervisors are paid a per diem, but the board chair is paid $8,000. Benefits. In addition to pay, 10 counties (Brown, Douglas, Grant, Kenosha, La Crosse, Lafayette, Milwaukee, Monroe, Ozaukee and Racine) pay for health insurance for county supervisors. Another two (Rock and Sauk) make it available, but supervisors who enroll must pay for it. Ten counties (Bayfield, Douglas, Jackson, Juneau, Kenosha, Marathon, Milwaukee, Monroe, Ozaukee and Racine) provide supervisors with retirement benefits. Shawano and Jefferson provide retirement benefits for the board chair only. COUNTY ORGANIZATION AND SPENDING As has been shown, Wisconsin s counties vary significantly in organization and administration. Some use elected county executives, while others have an appointed administrator or administrative coordinator. Some have large county boards; others have boards well below state-imposed upper limits. With the public spotlight currently on taxes and spending at the state and local levels, one interesting question is whether government organization and spending are related. More specifically, is county spending lower in counties with an elected executive compared to those with an appointed administrator? And, do counties with small county October Vol. 71 No. 10 Page 9

10 boards spend more, or less, than counties with large boards? Background Political scientists debate the role that government organization has on spending. They typically find that presidential governments (where the executive is directly responsible to the electorate) tend to spend less per capita than parliamentary governments (where the executive is responsible to the elected assembly). There are two main reasons for the spending differences. First, the president is a focal point who risks losing reelection if spending varies significantly from levels desired by voters. In a parliamentary system, there is no one individual accountable to the voters for spending. Second, presidents often have veto power over legislation, particularly spending bills. This power allows the president to limit spending. Parliamentary systems lack this feature. In Wisconsin, the county executive system has features of a presidential system, while the administrator/coordinator approach has features of a parliamentary system. As such, it might be expected that counties with Per Capita Spending Higher in Small Counties Excludes Highway and Social Services Spending $800 $600 $400 $200 $0 Smallest Counties has executive. Largest Counties an executive spend less, on average, than other counties. The relationship between county board size and spending is a little more ambiguous. One view is that large boards should be more accountable to taxpayers because each supervisor has fewer constituents. As a result, he or she is likely to place more weight on citizen concerns about taxes and spending, which might keep spending lower. An opposing view is that larger boards result in more spending. According to this view, in order for a supervisor to get his or her spending priorities approved, he or she must support other supervisors priorities. This give and take tends to increase overall spending. Administration Per capita county spending (excluding roads and highways) in 2001 ranged from $384 in Iowa county to $1,425 in Menominee. Further excluding health and human services, per capita spending ranged from $148 in Grant county to $686 in Florence. Road and highway spending is excluded from the analysis because of differences among counties in accounting for the spending. Health and human services spending is largely state-mandated and dependent upon socio-economic factors. It is not influenced significantly by county organization. Thus, it is also excluded in this analysis. In Wisconsin, counties with executives tend to be more populous. Although these counties spend more in total, they can spread their costs over a larger population. These economies of scale mean they tend to spend less per capita. The chart at left shows county spending (excluding highways; and health and human services) for 64 counties. Milwaukee and Menominee are excluded because they have unique characteristics. Also excluded are Page 10 The Wisconsin Taxpayer

11 counties that have changed their forms of administration between 1997 and Spending. The chart on page 10 shows the economies of scale in county spending, with smaller counties spending more per capita than larger counties. The counties with an executive are indicated by the dark bars. Although they tend to spend less per capita, it is unclear whether this is the result of the executive form of government or simply economies of scale. Taxes. Rather than focusing on spending, it may be that a county executive s priorities are to keep property taxes as low as possible. This is the direct cost of government that local voters pay. An examination of per capita property taxes and property tax rates shows the same pattern as for spending. Larger counties tend to have lower per capita property taxes and rates. As with spending, it is unclear if taxes are lower in county executive counties because of the type of administration or because of economies of scale. Board Size Several difficulties arise when trying to measure the relationship between board size and county spending. First, county size and economies of scale have to be accounted Larger Boards, Lower Spending? 2001 Spending +/- Norm vs. Board Size Relative to Statutory Maximum Spending Diff. from Pred. 80% 60% 40% 20% 0% -20% -40% -60% -80% 0% 10% 20% 30% 40% 50% Board Size - % Under Statutory Maximum for. Second, state law limits county board size. Thus, it may be that a county would prefer a larger board, but is limited by statute (see page 8). In 2001, 15 of the 64 counties studied were at their statutory maximum. To help understand the relationship between spending and county board size, the Generally, increasing board size by one reduces per capita spending by $8 to $ counties with board sizes less than the maximum allowed by law were examined. The following technique is used: Select groups of counties that are similar in population; Calculate average per capita spending for each group; and For each county, calculate, in percentage terms, the amount it is over or under the group average in spending and its board size relative to the statutory maximum. The plot opposite shows a modest relationship between board size and county spending. The nearer the county board is to its legal maximum (left side of the plot), the lower county spending is relative to similar-sized counties. More sophisticated statistical analysis shows that, after accounting for other factors, if a county increased its board size by one, its spending per capita would be expected to fall approximately $8 to $10. The results lend support to the notion that larger boards and, thus, fewer constituents per supervisor can help keep spending in check. The findings also bring into question the state s statutory limits on board size.! DATA SOURCE Wisconsin Departments of Revenue and Administration, and WISTAX county survey. October Vol. 71 No. 10 Page 11

12 TAXPAYER MEMO State Ranks High in NSF Grants $5 $4 $3 $2 $1 $ Geosciences Math/Physical Sciences Education/Human Resources Universities, colleges, individuals and businesses in Wisconsin received $18.81 per capita in National Science Foundation (NSF) grants in 2002, ranking the state 16th-highest nationally. West Virginia received the most ($145.45), followed by South Dakota ($73.40) and Utah ($70.37). Washington ($0.16) received the least. The Badger State received 397 NSF grants (19th) totalling $98.5 million (15th), of which UW-Madison accounted for 86.1%. NSF is just one of several federal agencies, e.g., National Institute of Health and Departments of Education and Defense, funding research. Receipt of such dollars reflects the quality of a university s research efforts that may ultimately pay economic dividends in the form of new employers or products. Among Midwest states, Wisconsin ranked highest in per capita NSF grant money, followed by Illinois ($16.66), Michigan ($12.94), Iowa ($11.38) and Minnesota ($11.36). Illinois received the most grants and money (913, $208.6 Wisconsin Performs Well in NSF Grants 2002 Per Capita Amounts by Category, Wis. vs. U.S. Biological Sciences Engineering Computer/Info. Sciences Wis. U.S Social/Behavioral Sciences million) in the region, followed by Michigan (638, $129.5 million) and Wisconsin. By category, Wisconsin did very well in atmospheric, ocean and other geosciences (8th highest, 88.3% above the U.S. average). The chart shows the Badger State was also above average in NSF grants in biological sciences ($2.69 per capita vs. $1.80) and engineering ($2.32 vs. $1.79). Wisconsin was below average in computer and information sciences ($1.56 vs. $1.77), though it ranked 14th highest. Wisconsin was also below average in math and physical sciences ($3.30 vs. $3.41), education and human resources ($2.80 vs. $3.18) and social and behavioral sciences ($0.37 vs. $0.61).! Wisconsin Taxpayers Alliance 335 W. Wilson St., Madison, WI PERIODICALS USPS