Limited need for new culture and recreation funding in the "WOW" counties

 

Open Spaces, Cultural Places, released by the Forum in late February, finds that the roughly $9 million in local tax dollars spent annually by county governments in Waukesha, Ozaukee, and Washington counties on culture and recreation has been largely sufficient to avoid capital repair backlogs at county-owned facilities and to meet operating needs. Consequently, the relevance of any new regional culture and entertainment funding source to those counties may be limited.

 

"Our research shows that the three county governments enjoy strong fiscal health and that their recreational and cultural facilities have been spared from large budget or staffing reductions in the aftermath of the economic downturn," says Forum President Rob Henken. "Meanwhile, costs associated with prioritized items in their five-year capital plans are manageable, and public-private partnerships that have been used previously to secure capital resources for major improvements remain intact."

 

The report was a follow-up to two recent Forum reports that have helped to frame deliberations over possible new sources of funding to support cultural and entertainment assets in Milwaukee County. The first - Pulling Back the Curtain - assessed and quantified the needs of the Milwaukee County-owned cultural facilities and parks, as well as major privately-owned cultural assets and sports and convention facilities. The second - The Show Must Go On? - analyzed how five other metro areas had established dedicated funding sources to support their cultural and entertainment amenities.

 

"While considerable attention has been devoted to the needs of cultural, recreational, and entertainment assets in Milwaukee County, there is little understanding about how public dollars are used to pay for similar amenities in the WOW counties and whether similar unmet needs have emerged," says Henken. "This is despite continued discussions among civic leaders regarding a possible regional source of public funding that would help support assets throughout the broader metropolitan Milwaukee area."

 

The report seeks to shed light on culture and recreation in the WOW counties by addressing the following research questions:

  • To what extent do county governments in Waukesha, Ozaukee, and Washington counties use local property and sales tax revenues to support cultural and recreational assets and activities?
  • What is the nature of financial and infrastructure challenges faced by publicly-owned cultural and recreational assets in the WOW counties, and how are those challenges impacted by countywide fiscal constraints?
  • Are there privately-owned cultural and recreational assets in the WOW counties that would be logical candidates for public funding if such funding were available?

The Forum's analysis shows that the three county governments spend a combined $16-$18 million on culture and recreation operations annually, with about $6 million of that derived from local property taxes. The three counties also spend a combined $3-$4 million on capital needs annually.

 

The report also considers the needs of three private cultural organizations in the WOW counties: the Sharon Lynne Wilson Center for the Arts, Ozaukee County Historical Society, and Museum of Wisconsin Art. These organizations were selected because of their regional nature.

 

The following summarizes the major policy observations contained in the report:

  • Overall, there does not appear to be a pressing need for a new source of public funding to support county government's provision of recreation and culture services in the WOW counties. Each of the three county governments has kept annual property tax increases to a minimum, enjoys healthy reserves, maintains modest debt loads, and uses long-term planning to stay on top of infrastructure needs. These are all indicators of strong overall fiscal health that suggest new or enhanced public funding sources are not a necessity. 
  • Private cultural organizations in the WOW counties could benefit from opportunities for grant funding from a new public funding source. The three organizations analyzed in the report have aspirations to improve their facilities in ways that could substantially enhance the visitor experience and maximize earned revenue, but those aspirations may be challenging to fulfill within existing revenue structures. Consequently, each could benefit from access to competitive grants if a regional public funding source were pursued.
  • Capital planning in the WOW counties should serve as a model for Milwaukee County. Review of capital improvements planning in the WOW counties reveals several important practices that Milwaukee County leaders might wish to emulate. Examples include efforts to diligently assess the condition of county assets and plan improvements well in advance of necessary appropriations; strategically anticipate and mix the use of bond proceeds, property tax levy, user fees, and grants based on the prioritization and timing of key projects; and build reserves for unanticipated major capital needs.   
  • Need is not the only reason to consider the use of non-property tax public resources to support recreation and culture in the WOW counties. While there is not a pressing need for additional public support for culture and recreational services provided by the three county governments, the ability to draw resources from a regional culture and entertainment sales tax, for example, could allow each government to replace property tax levy funding. More than $6 million in local property tax dollars is spent annually to support recreation and culture operations in the WOW counties, and those funds could be returned to taxpayers or redirected to other priorities.

"Our intention in conducting this analysis was not to suggest that a regional public funding source for cultural and entertainment assets should be pursued, but rather to provide factual context for any such consideration by assessing the need for additional sources of culture and recreation funding in the WOW counties," says Henken. "Our findings suggest that this need likely is to be determined by how elected officials and citizens view the role of government in providing and expanding cultural and recreational opportunities for its citizens, and which forms of public revenue they deem most appropriate for fulfilling that role." 

 

The report was commissioned by the Spirit of Milwaukee.