MADISON, Wis. (WMDX) – Madison’s mayor outlined solutions to the city’s budget shortfalls.
At the common council meeting Tuesday, Mayor Satya Rhodes-Conway presented two long-term budget options: a $22 million referendum, or $6 million in cuts. Under both plans, Madison residents would end up paying more in taxes and/or fees.
This isn’t a new issue. The city has been facing budget gaps for years. In June, the mayor’s office directed departments to come up with budget plans that cut spending by 5% across the board.
She said as Madison’s population continues to grow, services provided by the city have to grow as well.
“That costs money,” she said. “It means that we need to hire people to carry out those services, and we need to pay their salaries and their benefits. We need to give them the tools that they need to do their work.”
What’s causing the budget gap?
Rhodes-Conway said the budget gap isn’t because of overspending or “Cadillac services,” as she called them. The revenue limits set by the Republican-controlled state legislature haven’t kept up with inflation.
“Every year, we have a gap just accounting for inflation. We have a gap between what we have to pay out and what we are allowed to take in,” Rhodes-Conway said. “This is not about overspending or irresponsible budgeting … this is about a fundamental structural problem created by the state legislature.”
On top of that, Rhodes-Conway said Madison only gets about 18 cents of every dollar paid here in state taxes.
One referendum already on the ballot
The Madison Metropolitan School District has already approved a referendum for November. If the city of Madison does the same, it will be the first time voters are asked to raise taxes by both the school district and the city on one ballot.
Under the city referendum, taxes would rise $240 per year in 2024. That’s for the average Madison home, which is worth about $457,000. Under the school district referendum, taxes would rise about $1,370 per year by 2028.
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