Budget

The City of Madison’s Operating and Capital Budgets are planning and financial documents that detail how the City pays for services and infrastructure that benefit City residents. The Operating Budget funds daily operations, including staff salaries, community-based organizations that deliver services on behalf of the City, and other costs such as supplies and equipment. The Capital Budget funds physical infrastructure like roads, bike lanes, building improvements, affordable housing developments, and other projects. 

Budget development is a multi-step process that involves City agencies, the Finance Committee, and Common Council. 

About the City Budget

About the City Budget is an online resource that the Finance Department has developed to explain the fundamentals of the City's budget and fiscal condition. An informational series is available now and more materials are coming soon.

2026 Budget

2026 Budget Webpage

2026 Capital Budget Process

StepTitleDue Date
1.Budget KickoffMarch 18, 2025
2.Agency RequestsApril 18, 2025
3.Executive BudgetSeptember 2, 2025
4.Finance Committee HearingsSeptember 8, 9 & 29, 2025
5.Common Council HearingsNovember 11-13, 2025
6.Adopted BudgetJanuary 2026

2026 Operating Budget Process

StepTitleDue Date
1.Budget KickoffJune 16,  2025
2.Agency RequestsJuly 18, 2025
3.Executive BudgetOctober 7, 2025
4.Finance Committee HearingsOctober 13, 14, & 27, 2025
5.Common Council HearingsNovember 11-13, 2025
6.Adopted BudgetJanuary 2026

2025 Budget

2025 Budget Documents 2025 Adopted Budget

Capital Budget: $426.5 Million

The 2025 Capital Investment Plan includes funding for 2025 and outlines future investments for 2026 - 2030.

Operating Budget: $432.5 Million

The Operating Budget total includes City operating expenses within the General and Library Funds.

2025 Budget Outlook Information Series

Review the 2025 Budget Outlook for an in-depth explanation of current budget challenges.  Presentations from the City of Madison Finance Director and additional materials  are available. 

2024 Budget

2024 Budget Documents 2024 Adopted Budget

Capital Budget: $273.1 Million

The 2024 Capital Investment Plan includes funding for 2024 and outlines future investments for 2025 - 2029.

Operating Budget: $405.4 Million

The Operating Budget total includes City operating expenses within the General and Library Funds.

Public Information Sessions on the 2024 Budget

City Finance staff hosted two information sessions on the 2024 budget on October 30 and November 1. Recordings of the sessions are available on the City Channel, and a copy of the presentation are now available. The meeting included an overview of the budget process and highlights of the executive capital and operating budgets.

American Rescue Plan Act (ARPA)

The American Rescue Plan Act provided federal funding to state and local governments to support recovery from the COVID-19 pandemic.

Cost Allocation Plan

The City completes an annual cost allocation plan to accurately and consistently allocate central service costs to enterprise agencies receiving services. Charges associated with cost allocation are reflected in the inter-departmental charges and billings in the operating budget. 

The plan is developed using actual expenditure data from the prior year. For the 2025 budget, the plan will be developed in 2024, using actuals from 2023. 

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