Mayor Satya Rhodes-Conway at the Common Council’s July 16 meeting outlined a strategic long-term financial blueprint that would carry the city of Madison through the next five years. Given the strict restrictions imposed by the state and the city’s rapid population growth, Madison’s annual budget process needs to be part of a multiyear plan that allows city leaders to make prudent financial decisions while addressing the core needs of the community.
The mayor detailed two five-year-plus budget plans. The first assumes a successful $22 million referendum that must be approved by the Common Council as well as voters in November. This plan would avoid permanent cuts to city services in 2025 and layoffs of city staff. It would also constrain reliance on new special charges in future budgets. A referendum in 2025 would raise property taxes by $20 per month on the average household. This path would prevent another budget shortfall until at least 2030. It would also provide a window in which Madison can work with other municipalities across Wisconsin to advocate for the state to provide financial relief to local governments.
Failing that, balancing the budget would require $6 million in permanent cuts to city services in 2025 and a steady increase in new fees, one of the few ways the state allows local governments to raise revenue. Even with both cuts and fees, however, Madison would face another round of difficult choices as early as 2027.
Both plans follow the recommendations of the city’s financial experts to gradually use a larger-than-expected general fund balance — or “rainy day fund” — as part of the solution over several budget cycles. This will help balance future budgets while preserving Madison’s triple-A credit rating, which saves the city money over the long term.
