2025 Budget Outlook

City of Madison has faced a budget shortfall of some degree every year for the past 14 years due to state-imposed restrictions on City revenue and growing need for services. The City has been fortunate over the past 5 budget years to have sufficient funding from short-term federal pandemic relief and economic recovery funding, along with strong city reserves, to weather revenue losses and maintain service levels. As we look to the future, the City is facing significant challenges to maintain service levels for a growing population in the face of the State Legislature’s limits on property taxes, state aid, and other revenue sources.

The Finance Department is actively engaging the Common Council and informing the public about budget challenges as we plan for 2025. This webpage will be updated regularly with information on the budget process, presentations, and other materials from public meetings.

Information Series on the 2025 Outlook

The Finance Department recorded a four-part series to explain the fundamentals of the City’s budget and options for closing the budget deficit. A fifth part to the series is an explanation of property assessments and property taxes, prepared by the City Assessor and Finance Department. One goal of the series is to provide a general understanding of the overall City budget as a first step, followed by an explanation of what has been termed the “structural deficit”. This informational series is a first step toward deciding on an approach to balancing next year’s budget.

Part 1: Budget Foundations

Understanding the City’s fund structure & main components of the operating budget
Presentation | Recording | Summary

Part 2: The Structural Budget Deficit

Internal and external factors driving the deficit
Presentation | Recording | Summary

Part 3: Budget Balancing Strategies – Expenditures

Impact of personnel costs and debt service
Presentation | Recording | Summary

Part 4: Budget Balancing Strategies – Revenues

Options for raising local revenues, special charges and the property tax
Presentation | Recording | Summary

Part 5: Property Assessments and Property Taxes

Understanding the difference between how a property is assessed and how property taxes are calculated
Frequently Asked Questions

Public Meetings

Staff will be presenting information to the Common Council and Finance Committee throughout 2024. Public notices of the meeting schedule and agendas can be accessed on the City’s Meeting Schedule Website. Members of the public may register to speak during public comment, or may submit written comments to the Common Council or Finance Committee. Recordings to recent meetings will be linked below, and can be found on the Madison City Channel.

February 13: Common Council Presentation