Governor Scott Walker will propose eliminating all of Milwaukee's residency rules, according to legislative sources who have been briefed on tonight's speech. The elimination of residency rules would apply statewide.

Walker's plan would give city employees -- including firefighters, police officers and MPS teachers -- the right to choose where they would live. Milwaukee has had a residency rule since 1938.

The move is expected to be fiercely resisted by city officials, including Milwaukee Mayor Tom Barrett, who has claimed that lifting the rule would "decimate" the city's property tax base. 

Walker's proposal would, however, create an interesting political dynamic in which the Republican governor who abolished most collective bargaining powers for government employees, would be aligned  with city unions who support lifting the restrictive residency rule.

The move will also allow Walker to portray himself as an advocate for workers "rights." 

The change is not, however, a slam-dunk. Some influential Republican legislators have opposed previous efforts to lift the rules, citing local control..... Developing.