Milwaukee sales tax spending; debate grows over pension, pay raises

The Brief

  • Sen. Van Wanggaard says Milwaukee spent more than 90% of new sales tax revenue on raises and pensions, but Mayor Cavalier Johnson says the claims are misleading.
  • Act 12 requires most sales tax revenue to go toward the city’s pension, with remaining funds meant for hiring more police and firefighters.
  • City leaders in 2024 approved their first raises since 2008; currently, the police union is in arbitration seeking a 12.75% raise – more than the city’s 9% offer.

MILWAUKEE A new fight is erupting over how Milwaukee is spending its new sales tax money, as the city now faces a $100 million dollar budget gap.

Milwaukee’s decades-long push for more funding came true in 2023, when state law changed to allow the city to approve Wisconsin’s first-ever city sales tax of 2%. Now, a Republican lawmaker says he’s worried about where he thinks the money is going.

What they’re saying:

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