Conservatively Speaking

3 minutes + 34 seconds = Taxation without representation

Posted by Mary Lazich on July 15, 2009

Taxes, Legislation

Unelected boards with vast taxing authority in Wisconsin should be accountable to taxpayers. Members of these boards should be elected.

I have argued for that change for some time. During February 2006, I wrote a column about this issue:

 “Across Wisconsin, there are numerous boards that have the power to tax. Members of these boards are appointed, not elected. Technical colleges, sewage districts, and other types of unelected boards have the authority to impose taxes on Wisconsin taxpayers although they are not elected and they do not answer to Wisconsin taxpayers. Data indicates some of the increases these boards are approving go well beyond the rate of inflation.

I am proposing legislation requiring that all appointed boards in Wisconsin with taxing authority be elected bodies. It is time to end taxation without representation.

If boards are going to increase taxes, they must be accountable to the people paying taxes. Right now, taxpayers do not have recourse. It is fundamentally unfair and a violation of one of the basic concepts of good, open, clean government. If taxes are going to be increased, the boards should have to stand up and defend the increase and then vote to increase taxes. Finally, they need to face the people that pay the taxes in an election. The concept is called taxation with representation, and one that we should always adhere.”

In another column a year later, I provided the following numbers:

“It appears from all the data, the (tax) increases being hoisted upon taxpayers are substantial. Consider the total tax levies for the state's 16 technical colleges. According to he non-partisan Wisconsin Taxpayers Alliance, the technical college tax levies have increased from $251 million in 1992-'93 to $622 million in 2005-'06. That’s an increase of almost 150 percent compared to a 75 percent increase in overall levies during the same time period. Governor Doyle exempted technical colleges from levy limits in the 2005-07 state budget. Technical college boards were free to raise tax levies, and taxpayers were powerless.”

Former Milwaukee Journal Sentinel columnist Mike Nichols, now with the Wisconsin Policy Research Institute has written an outstanding, revealing investigative piece on one of those unelected boards, the board at the Milwaukee Area Technical College (MATC).  His compelling article offers more evidence that the current system of unelected, unaccountable boards epitomizes fiscal irresponsibility.

Nichols’ analysis focused on the MATC Board meeting of September 18, 2008. With the nation’s economy crumbling, MATC Board members in just one minute, without discussion or debate, approved and seconded a motion to extend lucrative MATC contracts that taxpayers would have to fund. The entire meeting lasted three minutes and 34 seconds.

MATC’s generosity thanks to taxpayers is well-documented by Nichols who calls their salaries, wages and fringe benefits, “eye-poppingly generous.” Nichols writes:

“State auditors report that both salaries and fringe benefits at MATC—which rose 85% at the school between 2001 and 2009—have traditionally been far higher than at other technical schools.”

Nichols outlines the school’s selection process for choosing board members, calling it “unusual” and “complicated.” Nichols also delves into the case of Greg Grambow, a local businessman who, despite being interested in being on the MATC Board, was essentially advised to simply forget the idea.

The MATC Board’s cavalier attitude and total disregard for taxpayers signal a clear need to make unelected boards elected bodies.

You can read Nichols’ article here.