2026 Executive Capital Budget & Capital Improvement Plan

For Immediate Release
September 2, 2025

The City of Madison’s 2026 Capital Budget and five-year Capital Improvement Plan (CIP) detail how we meet the basic needs of our residents and prepare for the future. They represent a comprehensive plan for investing in the physical infrastructure that underpins the success of our local economy, keeps Madison moving safely, and increases housing options for all of our residents. Guided by thorough study and innovative thinking from City policymakers, I’m confident my 2026 Executive Capital Budget upholds our community’s values and builds upon the progress we’ve made in recent years.

The 2026 Executive Operating Budget, which focuses on services, staffing and programs, will be introduced in October. Both of these budgets will be considered first by the City Finance Committee and then by the Madison Common Council. In addition to the five budget engagement sessions held earlier this year to solicit feedback, there will be multiple opportunities for public input on the budget before final adoption in November.

The City of Madison is financially healthy, and our local economy continues to outpace the rest of Wisconsin. We once again received a triple-A rating from Moody’s that allows the City to borrow at the lowest possible interest rates. This results in millions in savings over the life of a bond. Regrettably, Wisconsin communities are still heavily dependent on the property tax to fund local operations and are restricted by the state from pursuing other revenue options. This is felt sharply by growing cities like Madison that are charged with providing basic services to an increasing number of residents without a subsequent increase in funding. These constraints limit our ability to implement creative and progressive solutions. Additionally, the federal government has recently eliminated financial tools to make our city more resilient against climate change and modernize our infrastructure. This negatively impacts the City’s ability to invest in critical capital projects which can translate into long-term cost savings.

Borrowing for capital projects, even at low interest rates, also impacts what we can accomplish in the operating budget so we must be prudent and prioritize investments to best serve our residents. This challenge will be more acute in coming years because of looming federal cuts to the social safety net, such as Medicaid, public health initiatives, and food benefits. Some of these cuts have direct fiscal effects on the City’s budget, while others will lead to greater needs in the community that Madison and other cities will have no choice but to contend with in future operating budgets. The federal government abdicating its responsibilities will ultimately increase burdens on Madison property taxpayers.

In order to keep debt service payments in check, my Executive Budget is $73.5 million lower in general obligation borrowing than what was originally requested by city agencies. We will continue to aggressively seek out any opportunity to leverage outside funds whenever possible. Since 2020, my administration has secured $618.6 million in federal and state funding, which has helped fund critical infrastructure while lessening the impact on local taxpayers.

With these challenges in mind, a central goal of the multi-year Capital Improvement Plan is to identify investments that will yield savings in future operating budgets. One example is constructing a new Streets facility on the far west side. Once completed, this facility will cut hundreds of hours per year in the travel time it takes for both trash and recycling pick up, as well as snow and ice removal for a large portion of the city. This efficiency will save half a million dollars in fuel costs per year, and even more cost savings as Madison continues to grow.

We also remain inventive in how we work with our strong network of community and government partners in order to maximize our investments. My 2026 Executive Capital Budget proposal keeps the Park and Badger redevelopment on track. This project will replace the outdated Fire Station 6 with a modern facility, create a new public health clinic, and fund more affordable housing. It will also create space for Madison College to build a new childcare training facility that will increase the number of providers in our area. This innovative project will serve multiple community needs while enhancing our public health and safety network to meet anticipated population growth in south and west Madison.

The capital budget also funds the upkeep and expansion of the City’s network of streets, walkways, and bike paths that allow Madison residents to move around the city safely and conveniently. The 2026 Executive Capital Budget prioritizes projects in the following areas:

• $29.2 million for street reconstruction to improve safety and ease of travel
• $25 million for the park system, including playground, facilities, and land improvements
• $8.9 million for projects to reduce flooding citywide and improve stormwater management
• $5.3 million for sidewalk repair and replacement to improve safety and access
• $2.9 million to improve the City’s extensive network of bikeway paths
• $1.4 million for Safe Streets Madison projects to ensure streets are accessible
• $735,000 for street trees and urban forestry equipment

Another priority for this budget is to continue critical investments in affordable housing for Madisonians. We are moving forward with a historic upgrade to the Madison Community Development Authority’s Triangle public housing development. The 10-year plan for the Triangle is an ambitious undertaking that will serve Madison’s working families for decades. Once the project is completed, the overall site will replace 340 existing apartments with up to 1,200 new apartments in eight new buildings without displacing a single resident. This housing is designed to highlight the importance of community, foster strong connections to the rest of downtown, and save renters money on their utility bills by using sustainable building methods.

In addition to the Triangle development, my capital budget contains $17.5 million in our affordable housing fund in 2026 that will support the creation of new affordable housing across our community. The City’s ability to provide public and affordable housing is limited by lack of support at the state and federal level. Nonetheless, thanks to these investments and our prior funding of affordable housing, I’m happy to report that Madison is on track to meet our goal of building 5,000 new homes in 2025. We must keep this pace up to ensure every Madison family has the opportunity to choose what type of home works best for them and what neighborhood they want to live in.

I’m looking forward to working collaboratively with my colleagues on the Common Council during the upcoming budget process. My Executive Capital Budget proposal focuses on the core services and infrastructure that keeps Madison running while creating a high quality of life for our residents. I know that’s a goal we all share. 

— Mayor Satya Rhodes-Conway