The purpose of the Municipal Services Payments (MSP) Program is to make an equitable annual payment to WI municipalities from a specific State Appropriation, in recognition of critical services directly provided to State facilities in the prior calendar year. The intent of the statute (Section 70.119) and the effect of the Program Guidelines (linked below) is to aid in the reduction of local real property taxes by making a State contribution toward the cost of certain municipality-generated services financed out of local property tax revenue. The three municipal services covered under this program are police, fire, and solid waste pick-up.
Program administration is conducted by an MSP Administrator designated by the Department of Administration. The amount of an entitlement, per municipality, is determined largely by formula and through additional negotiation for special conditions or situations which may arise. No special application or request on the part of a City, Village or Town is required in order to be eligible for consideration of entitlements in the MSP Program's calculations.
This program started in 1973 and has been operating ever since. The 2019 MSP Program Payment Schedule was submitted to the WI Legislature's Joint Committee on Finance as required by the November 15 deadline.