Sharing the WI Policy Forum's Report on 2027 City Budget Proposal
postedEvery year, the folks at the Wisconsin Policy Forum prepare a helpful policy research report summarizing and breaking down the following year's proposed City Budget. They share their report with Madison officials in the weeks before the Common Council's budget deliberations, which this year will take place next week - more to come in this weekend's weekly updates blog post.
In their own words, the folks at the Wisconsin Policy Forum "analyze and publish information about the finances of state and local governments and school districts to increase awareness of fiscal and service-level challenges and promote efficient, effective, and equitable use of taxpayer dollars."
Here's their webpage with a link to the full 2027 budget report document.
Here is the introduction section of the Forum's City of Madison 2027 Proposed Budget brief, which I think serves as a good summary:
"Two years after Madison voters approved a $22 million tax increase for the city in a referendum, the city's finances remain relatively solid. Mayor Satya Rhodes-Conway's 2027 budget proposal reflects that stability, keeping the increase in the city's property tax levy to roughly the recent rate of inflation while limiting most service cuts and adding in some new elements to the city's budget and programs.
With the help of a $350,000 grant from the Madison Community Foundation, the budget would fully implement body cameras for most police officers, provide raises for city employees and some new positions, and fund an ambulance company and new northeast side library.
The city also would maintain ample reserves that provide more than enough cushion to protect citizens and taxpayers from unforeseen events. The city also benefits from rates of new construction that generally outpace the state average, low unemployment rates in Dane County, and a relatively strong economy. For a Midwest city in 2026, Madison remains in an enviable position.
However, the city's budget is showing some signs of pressure. Relatively rapid growth in spending and tight limits on local revenues are likely to open up gaps in future budgets. Once again, the 2027 proposal would tap reserves to help balance the city budget and make an even greater use of them in future years. The city did not have enough funding in this budget to fully cover a shortfall for Madison Metro Transit, which faces its own disparity between its slowly growing revenues and rising costs.
Funding existing services is challenging enough, making it difficult for Madison to fund new initiatives to address the emerging pressures on services in a city that has grown by approximately 4,000 people per year since 2020. As a result, the city's resources have been spread across a growing number of residents.
To their credit, city officials have put forward a multi-year plan for eliminating the budget shortfalls that are expected to grow each year, drawing on a mix of new fees, curbs on spending, and the use of reserves to maintain services. However, the plan is for now just that and could face a range of hurdles, including objections to the new fees.
As we do each year, we have put forward this budget brief to shine a light on the city's finances and the mayor's proposal for the upcoming year. As with all of our reports, the Wisconsin Policy Forum does not intend with our brief to endorse or oppose any part of the mayor's proposal. Instead, we hope our analysis provides insights for city residents and Common Council members and enhances their understanding of the fiscal challenges and opportunities facing the city. In so doing, we aim to contribute to an informed debate about the vital decisions that lie ahead."