WMC’s Manley Worries About Property Tax Spikes, Business Instability After Act 10 Decision

The head of Wisconsin’s largest business group says the decision to strike down Act 10 goes far beyond public sector unions and the state’s classrooms.

Scott Manley with Wisconsin Manufacturers & Commerce on Thursday told News Talk 1130 WISN’s Jay Weber that Dane County judge who struck down Act 10 injected an incredible amount of instability into Wisconsin tax and business climate.

“It's going to be an additional $2.1 billion of taxpayer costs every single year,” Manley said. “To put that number into perspective, every household in Wisconsin will pay an average of $860 per-year in higher taxes if this Dane County judge's ridiculous and lawless ruling is allowed to stand.”

Judge Jacob Frost declared that Act 10 was unconstitutional because it separates certain state employees into two categories.

Act 10 limited public sector union collective bargain, specifically by only allowing unions to negotiate over salaries.

Manley said the end of Act 10 will almost certainly lead to public sector unions once again making demands over pensions, health benefits, and of course larger pay raises.

All of that, Manley said, will be paid for with tax increases.

“If you look at the WILL report, that $2.1 billion [in taxpayer costs] is an eye-popping number. But $1.6 billion of that is schools alone. And as we know schools are funded by property taxes largely by property taxes in the state,” Manley added. “So I think it's important to understand the impact of this decision on property taxes. We already have the sixth highest property taxes in the country right here in Wisconsin, which is a regressive tax on the poor and elderly people living on a fixed income. So what what the Dane County judge said on Monday is basically, you know, “Too bad you can barely afford to stay in your home. I'm going to raise your property taxes by nearly $1,000 per-year so that the teachers union fat cat bosses can get even fatter.’.”

Manley said when taxes go-up people in the state have less money to spend, and that in turn hurts businesses because people have less money to spend.

But Manley and WMC are not simply opposed to the end of Act 10 because of likely future tax increases.

Manley said the judge’s decision upends what had been settled law for more than a decade, and substituted the will of lawmakers with the judge’s own view of Act 10.

“That's why the rule of law is so important,” Manley explained. “Businesses want to operate in a system where we have a stable legal environment. Nobody likes to make risky Investments, and that includes businesses. And that's why businesses need predictability. They don't want to take their own money and put it at risk, and invest it in an environment where on any given day one guy wearing a black robe can just completely upend the law as it has existed for more than a decade, and dramatically impact the cost of doing business. The rule of law has to mean something, or business owners just aren't going to risk their own money and make investment.”

WMC is one of the many groups in Wisconsin who are hoping for an appeal. But any appeal will end-up in from of the state’s now liberal-majority Supreme Court.