State, Local, and Tribal Government

1. State, Local, and Tribal Government Chapter 4: The Executive Branch and State Finances

2. Overview • WI spends about 27 billions dollars annually • Employs 66,000 people • People and business produce more than 227 billion dollars in goods and services (if it were a country, it would be in the top 30 GDP, ahead of Ireland, Israel, and Argentina) • Thus, WI needs organization and supervision to run smoothly • Just as the US has a president, WI has a governor who is responsible for administering state government • To help the governor in this task, the legislature has established 58 major agencies and departments that make up the executive branch of gov’t • Most are located in Madison, but a number are located throughout the state

3. The Governor • The governor is the state’s chief executive officer, elected on a party ticket with the lieutenant governor every four years in the November general election • Governor supervises the agencies of the state • Appoints officials to head key agencies, must be approved by the state senate • Through appointments and the state budget, the governor exercises power (the work of agencies is reviewed every two years when the budget bill is drafted, the governor has initial power to determine how much the agencies receive in funding and then in signing or vetoing the final bill) • Governor can also recommend new laws or further improvements in discussion with legislators • Many agencies are accountable to the governor’s office! • Veto power is also a considerable source of power

4. Other Executive Officers • Lieutenant governor- like the vice-president. Takes over duties of governor temporarily or if the governor dies, resigns, or is removed from office. • Secretary of state- in charge of official state records • State treasurer- official charge of state’s funds and administering the college savings program • Attorney general- chief legal officer, advises state, county, and municipal official on legal questions, handles most lawsuits involving the state • State superintendent of public instruction- general supervision of public schools in the state

5. Agencies • There are 58 of them • May be headed by a single official called a secretary • May also have a board of directors who choose a director or a full-time commission to oversee operations • Do you think it is better to have one director who is loyal to the governor or a group who may not be loyal?

6. Current Agencies • Services regulated by agencies: agriculture, commerce conservation, education, employment, law enforcement, licensing, human services, tourism, transportation, etc. • Agencies collect state taxes, license doctors, ensure safe food, check complaints about job discrimination, etc.

7. List of Major Agencies • Assignment: Look up the agency online and tell us what they do, what their mission is, how they operate, any current programs, etc. • Dept of Administration • Dept of Agriculture, Trade, and Consumer Protection • Dept of Corrections • Dept of Health and Family Services • Dept of Natural Resources • Dept of Public Instruction • Dept of Revenue • Dept of Transportation • Dept of Workforce Development • University of WI system

8. State-Local Relations • State and local governments are interrelated • As the higher power, the state determines what local units may or may not do • State also funds many programs locally, a source of revenue for local units • State also enforces regulations that directly impact local governments (i.e. the DNR on how to dispose of solid wastes) Such regulations are called mandates • Local units complain that mandates are costly and that the state does not provide enough funding to help meet the state-set standards and that the state has too much power over local operations

9. Financing State Government • The state is the largest government unit in WI • Currently collects and spends about 20 billion dollars annually • See figures 5 and 6 on pgs 64/65 • Where does most of the income come from? • Ind. Income tax, sales tax, corporate tax, and motor vehicle tax are top 4 sources • Where do most of the expenditures go? • Education, running of the govt, aid to organizations and individuals, etc. • State may also borrow money for projects such as building construction, highway improvements, etc. • Counties and local govts also have the power to impose taxes, i.e. property taxes on your house

10. Budget • Financial year that begins July 1 and ends June 30 • Budget covers two years at a time by odd-numbered years, i.e. 2007-2009 budget • Governor submits a bill • Introduced in the legislature • Referred to Joint Committee on Finance • Once the bill is passed in both chambers, it is sent to the governor for final approval/veto

11. More on Finance • State does not keep all of its tax revenue, rather returns it to local units in various state aid projects • Amount given depends on the area’s population, value of its property, amount it contributed in tax initially, what it received the previous year, etc. • State aids are paid by the state to towns, villages, cities, counties, school districts, and technical college districts to help finance specific services • An example of state aid to individuals is property tax relief