MADISON, Wis. — Madison is preparing residents for a $27 million structural deficit in the 2025 city budget that could lead to tax increases and/or service cuts. The city will share an official presentation on the subject at its council meeting Tuesday evening.
A recent update to the city website gives a full rundown of the budget situation and possible solutions. The city documents describe the structural deficit as “an on-going gap between the costs-to-continue current services to city residents and the growth in revenues that is allowed under Wisconsin law.” It blames the state legislature limiting the authority of municipalities to increase property taxes as a major factor in the deficit, along with the decreasing amount of shared revenue coming to the city from the state.
Previously, 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.