(1) DEFINITIONS. In this section: (b) “Mileage aids” means the amount determined under sub. (2) (a) 3. (c) “Municipality” means a city, village or town. (d) “Share of costs” means the amount determined under sub. (2) (a) 2. a. or b. (e) “Statewide county average cost-sharing percentage” means a factor determined for counties by which multiyear average costs under s. 86.303 are multiplied to fully distribute the amounts specified in sub. (9) (b) for the purpose of determining the share of costs. (f) “Statewide municipal average cost-sharing percentage” means a factor determined for municipalities by which multiyear average costs under s. 86.303 are multiplied to fully distribute the amounts specified in sub. (9) (c) for the purpose of determining the share of costs. (g) “Three-year average costs” means the amount determined based on the 3 most recent years of actual costs established under s. 86.303. (2) TRANSPORTATION AIDS DISTRIBUTION. (a) Amount of aids payment. 1. Except as provided in pars. (b), (d) and (dm) and s. 86.303, the amount of transportation aids payable by the department to each county shall be the aids amount calculated under subd. 2. and to each municipality shall be the aids amount calculated under subd. 2. or 3., whichever is greater. If the amounts calculated for a municipality under subd. 2. or 3. are the same, transportation aids to that municipality shall be paid under subd. 2. 2. a. The share of costs for a municipality is the amount determined by multiplying the statewide municipal average costsharing percentage by the municipality’s multiyear average costs under s. 86.303. b. The share of costs for a county is the amount determined by multiplying the statewide county average cost-sharing percentage by the county’s multiyear average costs under s. 86.303. 3. For each mile of road or street under the jurisdiction of a municipality as determined under s. 86.302, the mileage aid payment shall be $2,734 in calendar years 2023 to 2025. The mileage aid payment shall be $2,930 in calendar year 2026. The mileage aid payment shall be $3,018 in calendar year 2027 and thereafter. (b) Minimum and maximum payments. 1. Except as provided under par. (d) and s. 86.303 (5), no municipality whose aid is determined under par. (a) 2. may receive an increase in its annual transportation aid payment in excess of 15 percent of its last previous calendar year aid payment or a decrease in its annual transportation aid payment in excess of 10 percent of its last previous calendar year transportation aid payment. 1g. Except as provided under par. (d) and s. 86.303 (5), no municipality whose aid is determined under par. (a) 3. may receive a decrease in its annual transportation aid payment in excess of 10 percent of its last previous calendar year transportation aid payment. 1r. Except as provided under s. 86.303, no county may receive an increase in its annual transportation aid payment in excess of 15 percent of its last previous calendar year aid payment. Except as provided under par. (dm) and s. 86.303, no county may receive a decrease in its annual transportation aid payment in excess of 10 percent of its last previous calendar year transportation aid payment. 2. The last previous calendar year aid payment to a municipality whose aid is determined under par. (a) 3. is adjusted in proportion to changes in the mileage under the jurisdiction of the municipality before an adjustment under subd. 1g. is made. (d) Aid limitation based on reported costs. 1. No municipality may be paid an amount under this section greater than 85 percent of its 3-year average costs, except as provided in subd. 2. 2. A town for which the equalized value of the town in the previous year was in the bottom quartile of equalized values of towns in the state for that year cannot be paid an amount under this section greater than 98 percent of its 3-year average costs. Equalized values under this subdivision shall be those determined by the department of revenue under s. 70.57. (dm) Fiscal limits aid reductions. 1. If the department of revenue requests the department to reduce the aids paid to a county under par. (e), the department shall reduce those aids by the amount specified under s. 59.605 (4) (b). 2. An amount equal to the amount of the reductions under subd. 1. is lapsed to the transportation fund. (dr) Aid reduction related to outdoor advertising sign condemnation. The department may reduce aids paid to a county or municipality under par. (e) as provided in s. 84.30 (5r) (c). (e) Aid payments. General transportation aids under this section shall be calculated and distributed on the basis of a calendar year. General transportation aids to municipalities shall be paid in 4 equal installments on the first Monday in January, April, July and October. General transportation aids to counties shall be paid in 3 installments consisting of 25 percent of the amount under sub. (9) (b) on the first Monday in January, 50 percent of the amount under sub. (9) (b) on the first Monday in July, and 25 percent of the amount under sub. (9) (b) on the first Monday in October. If adjustments are necessary, the department may adjust any of the scheduled aid payments in a calendar year. The payments shall be made from the appropriation under s. 20.395 (1) (as) or (at) for the fiscal year in which the payments are made. (f) Corrections of aid payments. In making corrections to transportation aid payments under this section: 1. If the sum of all underpayments and overpayments results in a net underpayment, the net underpayment shall be paid from the appropriation under s. 20.395 (1) (ar). 2. If the sum of all underpayments and overpayments results in a net overpayment, the net overpayment shall be returned to the transportation fund. (2m) ADJUSTMENTS FOR CERTAIN AID LIMITATIONS. If the amount of transportation aids paid to a town is limited by sub. (2) (d) to an amount less than the amount calculated under sub. (2) (a) and the department determines that the limitation was caused by the timing of a reimbursement for an expenditure made by the town, the department shall make an additional payment of transportation aids to the town from the appropriation under s. 20.395 (1) (aw) in an amount that the department determines will compensate the town for the diminished payments. If the moneys appropriated under s. 20.395 (1) (aw) are not sufficient to fully compensate towns qualifying for payments under this subsection, the department may prorate the payments among the qualifying towns. (3) SUPPLEMENTAL TRANSPORTATION AIDS. (a) Amount of aids payments. Notwithstanding sub. (2) and subject to pars. (b) and (c), for a town for which the amount of aid determined under sub. (2) (a) 3. is limited by sub. (2) (d), the amount of aid under this subsection is calculated by dividing $2,500,000 by the total mileage of town roads in towns eligible to receive aid under this subsection and then multiplying that amount by the total mileage of town roads in the town receiving aid. The department shall determine the amount of aid payable under this paragraph prior to the calender year in which the aid would be payable. (b) Limit on aids payments. A town may not receive aid under par. (a) that, when combined with the amount the town received under sub. (2), exceeds 100 percent of the town’s 3-year average costs. (c) Recalculation of amount of aids payments. As the department makes aid payments under par. (a), the department shall recalculate the amount of aid payable under par. (a) for all towns that remain below 100 percent of the town’s 3-year average costs. The department shall continue to make aids payments until an amount up to $2,500,000 is expended from the appropriation under s. 20.395 (1) (av), or each town eligible for aid under this subsection has received an amount equal to 100 percent of the town’s 3-year average costs, whichever occurs first. (d) Aids payments. The department shall make the payments calculated under par. (a) no later than the first Monday in January of each year. (e) Sunset. This subsection does not apply after June 30, 2021. (7) USE OF AIDS. All transportation aids distributed under this section shall be used for transportation related expenditures. (9) AIDS CALCULATIONS. (b) For the purpose of calculating and distributing aids under sub. (2), the amounts for aids to counties are $132,276,700 in calendar year 2025. The amounts for aids to counties are $136,245,000 in calendar year 2026. The amounts for aids to counties are $140,332,400 in calendar year 2027 and thereafter. These amounts, to the extent practicable, shall be used to determine the statewide county average cost-sharing percentage in the particular calendar year. (c) For the purpose of calculating and distributing aids under sub. (2), the amounts for aids to municipalities are $415,116,200 in calendar year 2025. The amounts for aids to municipalities are $434,165,700 in calendar year 2026. The amounts for aids to municipalities are $447,190,700 in calendar year 2027 and thereafter. These amounts, to the extent practicable, shall be used to determine the statewide municipal average cost-sharing percentage in the particular calendar year. (11) LOCAL SEGREGATED ACCOUNT REQUIRED. (a) Notwithstanding sub. (2), the department may not pay state aid under this section to a municipality or county unless the municipality or county does all of the following: 1. Establishes and administers a separate segregated account from which moneys may be used only for purposes related to local highways. 2. Deposits in the account established under subd. 1. all moneys received from this state and from the federal government for local highway purposes. (b) If a municipality or county does not meet the requirements under par. (a) at the time that aid should be paid under this section, the aid payment may be forfeited. (c) Rules implementing this subsection may not require any eligible applicant to do any of the following: 1. Pay expenses related to law enforcement using moneys from an account established under this subsection. 2. Maintain separate checking accounts to implement this subsection, if the eligible applicant implements this subsection by segregating revenues and expenditures described in this subsection in the eligible applicant’s bookkeeping system.
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