Madison Mayor Satya Rhodes-Conway on Tuesday introduced her 2026 Executive Capital Budget and Capital Improvement Plan. The $285 million capital plan slightly increases borrowing and relies on less federal aid.
Rhodes-Conway’s budget is $73.5 million lower in general obligation borrowing than what was originally requested by city agencies in order to keep debt service payments in check.
Still, the mayor asserted that the city “is financially healthy” and that its “local economy continues to outpace the rest of Wisconsin.”
The mayor’s plan would allocate nearly $60 million in 2026 for a new public works facility and the construction of a new South District police station with a centralized property and evidence storage facility.
It also prioritizes investments in affordable housing, including an upgrade to the Madison Community Development Authority’s Triangle public housing development and $17.5 million for the city’s affordable housing fund in 2026.
A drop in federal funds coming into the city spurred a year-over-year spending reduction of $133 million. Madison received $118.1 million in federal grants this year for work on the North-South Bus Rapid Transit line and $47.2 million in federal COVID relief funding — funding sources due to expire this year.
The city anticipates borrowing $171.6 million in 2026 — around $660,000 more than last year. The remaining $113.7 million will come from sources like reserve funds, special taxing districts, state and federal grants and revenue bonds.
The mayor’s budget requires approval from the City Council. Rhodes-Conway will introduce an operating budget for 2026, covering the city’s payroll and other day-to-day expenses, in October.
