Wisconsin municipalities can pay into a state account in exchange for insurance on public property. State auditors reported in June the account had a $36 million surplus.

The state Assembly passed a bill last week that ordered state officials to reduce the locals' premiums by $12 million next year. The measure is currently in the Senate insurance committee.

State Insurance Commissioner Sean Dilweg has the authority to return the money immediately without legislation. On Wednesday he announced his office would divide $12 million of the surplus as credit among the locals beginning in January.