10/08/2024 | Press release | Distributed by Public on 10/08/2024 12:49
Today, Mayor Sayta Rhodes-Conway released her 2025 Executive Operating Budget, which details her plan to fund the services, programs, and skilled staff that sustain Madison's high quality of life and keep our economy strong. The Operating Budget is complemented by the 2025 Executive Capital Budget, which was released in September and details funding for buildings, infrastructure, and other capital investments.
The operating budget was developed in the face of challenging and unrealistic revenue constraints from the State legislature. Madison is the core of the fastest-growing area in the state because it's a great place to live and work. But due to the State Legislature's long-standing caps on revenue, City government cannot capture the benefits of that growth, or even keep up with inflation. After more than a decade of an ever-increasing gap between costs and revenues, the City's operating budget for 2025 has a $22 million structural deficit.
As a result, and to continue to invest in Madison's future and balance the budget, City leaders have placed a measure asking voters to approve a $22 million funding referendum on the November ballot. The Mayor's primary Executive Budget is designed for a future where voters approve the referendum and maintains the City's investments in high-quality services and operations while continuing the City's ongoing efforts to operate as efficiently as possible.
"Madison provides basic services that are widely supported and valued by our community. As our city grows, we need to continue to invest in order to maintain those services," said Mayor Rhodes-Conway. "City workers pick up our garbage, provide public safety, maintain our parks, and staff our libraries and polling places. I believe voters will see the value of these services in their lives and will approve a referendum, which will give us the time we need to get a better deal for cities across Wisconsin."
As detailed below, the budget proposal also outlines a contingency plan in the event the referendum fails to pass.
Executive Budget Proposal
The Mayor's Executive budget largely focuses on maintaining the valuable services Madison provides to a fast-growing city. This budget largely maintains existing service levels and prioritizes what matters most to manage the budget as efficiently as possible. Highlights of this budget include:
Alternative Budget Preparation
In addition to the Executive Operating Budget, responsible budgeting requires an alternate plan if the referendum does not pass in November. In this situation, the City would propose amendments to close the $22 million budget gap by cutting $5.6 million in services from the operating budget, while introducing $10 million in new special charges and using a prudent amount of fund balance to fill the gap.
City staff have long been finding efficiencies and doing more with less. That means the City has come to a point where any easy cuts have already been made and budget reductions must be accompanied with service reductions. The budget reductions eliminate at least 18.2 full-time equivalent positions and funding for hourly employees at a time when Madison is growing rapidly. This is on top of expected reductions in Metro's workforce, or other potential cuts in Police and Fire.
"Cuts like these shouldn't be needed in a growing and thriving city. We are the economic engine of the state," says Mayor Rhodes-Conway. "But until the State legislature stops hamstringing our growth, we are left with few options."
Budget reductions were selected based on a number of factors including input from agencies, data on what services meet the greatest needs of residents, community feedback, a goal to maintain core public safety and health services, state penalties for reductions to police and fire services, and focusing staffing reductions on vacant rather than filled positions. Additionally, proportionately larger reductions are proposed for the Mayor's Office and Council.
Examples of proposed reductions if the referendum does not pass include the following in 2025. These represent some but not all of the cuts, and nearly every City agency is impacted by this budget scenario. Importantly, without the referendum, additional, deeper reductions will be required in future budgets as well.
Community Services
"City services like libraries, parks, public safety, and environmental protection are the foundation that underpin our economy. There is no rational reason Madisonians should see cuts to these services. I hope and believe the people of Madison will support a better path forward," said Mayor Rhodes-Conway. "I'm encouraged by the mayors and state legislators across Wisconsin advocating for change at the state-level. Allowing local communities to thrive is not a partisan issue and it benefits all Wisconsin residents."
Public hearings on the Mayor's Executive Budget will be at City Finance Committee meetings on October 14 and 15, and the Common Council will act on the full budget on November 12, 13, and 14. Full budget documents can be found at cityofmadison.com/budget/2025.