OSHKOSH (NBC 26) — The Oshkosh City Council passed a resolution urging the Wisconsin Joint Finance Committee to fund 100% of the Municipal Services Payment Program, which would have saved Oshkosh taxpayers $1,689,100 this year, according to the City.
- The MSP Program reimburses cities that house state-owned property, such as a mental hospital, state university or prison.
- Currently, the State of Wisconsin only pays 37.62% of service costs and property taxes on state-owned buildings.
In his proposed 2025-27 state budget, Gov. Tony Evers has requested to increase the MSP Program to 72%; the City of Oshkosh says it should be 100%
For many Oshkosh residents, 2025 was an expensive year for property taxes. Between property reevaluations and inflation, property taxes increased significantly.
“We know that gas and groceries, the two big ‘G’s, they are costing people money at home, and you don’t have the money at home, I don’t have the money at home to pay more and more and more in property taxes,” city council member DJ Nichols says.
Through the MSP Program, Oshkosh taxpayers could pay close to $1.7 million less in property taxes, according to Julie Calmes, Oshkosh finance director.
Calmes says if the MSP Program was funded 100%, a person with a $250,000 could have paid $72 less in property taxes for 2025.
“So, this is one of those state budget items that really does impact every citizen,” she says.
The MSP Program began in 1973 as a way for the state to reimburse cities for the cost of housing state property.
In 1981, the program was funded 100%, but today, the state only pays 37.2% of building costs.
“It’s not fair for our residents to actually pay to subsidize the cost of services that these properties are receiving from the city,” Nichols says.
Out of 361 municipalities that house state property, Oshkosh has the third highest amount, according to Nichols.
“Right behind Madison, which obviously that’s the capital with a lot of government buildings, Milwaukee which is the largest city in the state of course it has a bunch of government buildings, but Oshkosh comes in third,” he says.
The state facilities in Oshkosh are valued at $904,525,000, according to City Administration. The buildings cost Oshkosh $2,707,657, but only $1,018,557 is reimbursed by the state. Oshkosh taxpayers are forced to pay the remaining $1,689,100.
At the April, 22 Oshkosh City Council meeting, the council unanimously approved a resolution brought forward by city manager Rebecca Grill.
“The City of Oshkosh urges the Wisconsin Joint Finance Committee… increase funding to ensure 100% reimbursement going forward, in fairness to Oshkosh taxpayers and taxpayers of the other 360 municipalities receiving MSP, thereby alleviating the disproportionate tax burden on local citizens for the operation of state facilities,” the resolution says.
Nichols says Oshkosh residents should reach out to the Wisconsin Joint Finance Committee and local representatives to show support for the resolution.
“You don't have to be a property owner, of course, you can still reach out to these people and tell them to fund the MSP at 100%,” he says. “The City of Oshkosh, by passing this resolution, we are doing our job, and now it's time for our representatives of Madison to do theirs.”
You can find information on your state legislators here.
You can email the joint finance committee here.
