Madison approves $22 million referendum for November ballot

MADISON, Wis. — Madison Common Council approved a referendum, 17-2, for the November ballot to fix its $22 million structural deficit.

An amendment to increase the proposed referendum from $22 million to $29 million while cutting the urban forestry charge was rejected. It would have slightly reduced the tax rate for lower value homes, while increasing it for higher value homes.

In February, the city announced the structural deficit could lead to service cuts. The city has used means such as increasing fees, higher employee contributions to benefits, and across the board reductions to agencies to balance the budget. The city has also used federal relief funding and the local rainy day fund to fill the gap, with $18 million used to balance the 2024 budget. However, no more of those funds are coming. This lead to the city saying either tax increases or drastic cuts are needed.

"While both alternatives are unappealing, what’s even less desirable than a referendum are the significant cuts to basic services our residents depend on and that underpin our city’s success that would be necessary without it," Mayor Satya Rhodes-Conway said in a statement. "The approval of a referendum in November is the only budgetary path in 2025 that protects our values as a community, while we work to address the chronic underfunding of local governments at the state level. I’m glad the Council agreed that putting that issue to the voters is the right thing to do.”

The city states it is bared by a new state law from reducing police, fire, and emergency medical services. If it cuts from these areas, it would also lose shared revenue from the state of about $1.2 million. It also states cuts to capital projects funded through debt service would not help, as those funds are calculated separately and not subject to the rules limiting the raising of property taxes.

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