Fiscal Note
No appropriation required. The resolution directs the Finance Department prepare a comparison chart for the years 2019 through 2024 that shows the city population, total City operating budget, and amounts by department (adjusted and noted for any transfers of services between departments during that time period). The resolution also calls on the State Legislature to authorize local option sales taxes for Wisconsin cities and to authorize a Madison Area Transit District with local sales tax authority.
Title
Directing the Finance Department to issue a report analyzing City operating budgets from 2019-2024 and calling on the State Legislature to authorize local sales tax options
Body
WHEREAS, nearly three-quarters of the City of Madison’s budget comes from property taxes; and,
WHEREAS, by law, the State Legislature has placed strict limits on the ability of a city to increase its revenue; and,
WHEREAS, historically, the State Legislature has not provided specific state aid increases to adequately offset those revenue limits or inflation; and,
WHEREAS, Wisconsin is one of the few states that historically has not authorized local option sales or income taxes for its cities; and,
WHEREAS, Madison has had an ongoing structural deficit - meaning our expenses outpace our revenues, which is due, in part, to the state-imposed limitations; and,
WHEREAS, this structural deficit was made worse, in part, by the economic impact of the COVID-19 pandemic; and,
WHEREAS, City revenues remain nearly $33 million below pre-pandemic trends; and,
WHEREAS, by law, the state requires that an increase in property taxes (above the legally allowable level currently set by the State Legislature) be approved and implemented via a local voter referendum (to increase such property taxes); and,
WHEREAS, the estimated structural deficit is currently estimated to be $27 million for the 2025 budget, and if no action is taken, it could grow to over $60 million by 2029; and,...
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