MADISON—Spending on general government activities, such as administration and legal services, had the highest percentage increase among four key categories of municipal expenditures over the past five years, according to MunicipalFacts, a new study from the Wisconsin Taxpayers Alliance (WISTAX).

General government spending—including expenditures for general and financial administration, costs for the city council or village board, legal services, and general buildings and plant—rose 24.2% in 218 cities and villages during the period, to $190.5 million. Increases in the other expenditure categories were: law enforcement (up 23.2%, to $479.0 million); fire-ambulance spending (20.7%, to $309.2 million); and street maintenance (12.5%, to $254.1 million).

Comparative spending (spending in all four expenditure categories examined in the study) rose 20.4% from 1998 to 2002, to $1.23 billion, noted WISTAX. That was equivalent to an average annual increase of 4.7%, according to the nonpartisan, nonprofit organization dedicated to public-policy research and citizen education. In 2002, the median (half higher, half lower) total per capita comparative spending was $425.42.

These figures are contained in WISTAX’s 88-page, comprehensive study that examines patterns and trends in municipal finance for Wisconsin’s cities and villages in eight population groups between 2,000 and 150,000. These municipalities contain over half the state’s population and account for nearly two-thirds of all municipal spending. The study also examines property taxes and values, shared revenues, debt and income.

Among additional findings, WISTAX reported that per capita spending increases from 1998 to 2002 tended to be higher in municipalities with populations less than 7,000 (23.5%). In communities of larger size, spending rose an average of 19.9%. Sixty-five smaller municipalities were above the median spending increase of 17.6%, while only 44 larger municipalities were. The top ten municipalities in spending increases all had populations of 10,000 or less.

Ten of the 73 cities and villages with populations of 10,000 or more had comparative spending increases of more than 25.0%, while nine had increases of less than 10.0%. New Berlin had the highest percentage increase (41.1%) among these 73 municipalities. Fitchburg was second (36.8%), followed by Sun Prairie (35.4%), Glendale (31.7%), Plover (31.5%) and Middleton (29.6%).

Marinette was the only municipality of 10,000 or more population to experience a decline in spending (-5.2%), WISTAX reported. Four others in the group had increases of less than 5.0%: Port Washington (4.0%); Watertown (3.7%); Beaver Dam (2.0%); and Baraboo (0.5%).

Among cities and villages over 30,000 population in 2002, Wauwatosa had the highest per capita comparative spending ($695.95), which ranked seventh highest overall. The city was also highest in the group in each of the four prior years. Racine ranked second at $660.64. Janesville was lowest ($378.28), while Oshkosh was second lowest ($417.19).

Of the four categories examined, the highest median per capita amount spent by the 219 cities and villages in 2002 was for law enforcement, $165.70. Street maintenance, with a median per capita amount of $98.45, ranked second, followed by fire-ambulance at $74.98 and general government at $73.64.

The median percentage increases in per capita spending from 1998 to 2002 were: 19.5% for police; 17.0% for general government; 13.3% for fire-ambulance; and 13.2% for street maintenance.

Most municipalities with higher percentage increases in per capita general government and street maintenance spending tended to be under 7,000 population. Sixty-two small municipalities were above the median increase in general government spending, while only 47 large municipalities were. Similarly, the majority of those with street maintenance spending increases above the median (61 cities and villages) were small municipalities.

Per capita spending for fire-ambulance service was higher among the larger cities and villages, particularly those over 15,000 population. WISTAX noted that larger municipalities generally utilize full-time fire departments, while smaller ones use part-time and volunteer fire fighters.

Virchow Krause & Company, LLP, and Ehlers & Associates, Inc., provided grants for the study, which builds on the work of Comparing Municipal Expenditures, published annually since 1992 by WISTAX.