Madison mayor unveils two five-year budget plans to balance budget deficit

MADISON, Wis. -- Madison Mayor Satya Rhodes-Conway unveiled two five-year budget plans in a meeting with the common council Tuesday.

The first budget plan assumed a $22 million referendum that must be approved by the common council as well as the voters in November. This plan would avoid permanent cuts to city services in 2025 and layoffs of city staff.

A referendum in 2025 would raise property taxes by $20 per month on the average household. The City of Madison said this path would prevent another budget shortfall until at least 2030.

The city said if the first budget plan is unsuccessful balancing the budget will require $6 million in permanent cuts to city services in 2025 and a steady increase in new fees.

Both plans follow the recommendations of the city's financial experts to gradually use a larger than-expected general fund balance or "rainy day fund" as part of the solution over several budget cycles.

The city said over the past 14 years, it has had difficulties maintaining service levels to an increasing number of residents. The state provides Madison $29 per resident in shared revenue. The statewide average for municipalities is $195.

There has been a rise in city referendums in recent years, as nearly 50 cities have turned to referenda in the past two years.

"We can't keep kicking the can down the road," Rhodes-Conway said. "Madison must continue to find efficiencies wherever we can and to seek the least regressive revenue options." "What we can't keep doing is keep asking city staff to do more with less year after year."

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