Madison is Seeking a Funding Referendum

Our community is at an important crossroads. Madison is in the fastest-growing area in the state because it’s a great place to live and work. But due to the State Legislature’s artificial caps on revenue, our city cannot capture the benefits of that growth, or even keep up with inflation. That's why the City's operating budget has a $22 million structural deficit.

In order to continue to invest in Madison's future and balance the budget, Mayor Satya Rhodes-Conway introduced a $22 million funding referendum resolution in July. The Common Council voted 17-2 to place that referendum on the November 5 ballot allowing voters to decide whether to increase the property tax levy.

Madison's skyline at dusk
People attending the Madison Night Market

Why the Referendum is Important

If voters approve the referendum, Madison can adopt a City Budget that avoids significant reductions in City services in 2025 and even deeper cuts in future budgets. This will increase property taxes for the average homeowner by $230 annually. That's roughly $50 per $100,000 of property value, or less than $1 per day for the median home.

To balance the budget without a referendum, Madison would need significant reductions in services starting next year. Cuts will impact the entire city workforce from our garbage truck drivers, to our librarians, to police, fire and community services. If the referendum fails city operations will be reduced by $6 million in 2025 and Madison will be forced to make severe cuts to the services that residents rely on and love for the foreseeable future.

  • $54M in missing state aid

    A referendum would not be necessary if Madison simply received the average rate of shared revenue. Instead of $54 million, Madison receives less than $9 million. This amounts to $29 per resident. In comparison, most Wisconsin cities receive $195 per resident.

  • 18¢ Aid to Madison for every dollar paid to the state

    Madison residents get back less than 20 percent for every dollar they pay in state taxes. This includes state aid provided to the City, School Districts, and Dane County.

  • $13M Annual revenue if state fully paid its municipal service payment

    Wisconsin cities provide services to State-owned facilities such as police and fire protections. In 2024, Madison only received 38 percent of what the State says it owes for these services.

  • $4.6B Size of state surplus

    Wisconsin currently has an enormous surplus. The surplus is generated from declining support of cities and other public institutions. Madison and other Wisconsin communities need more state support to survive and thrive.

Madison's mental health workers

Madison Provides Essential Services to Residents

Madison provides critical services from pure water to public health, from police and fire, to emergency mental health services. City workers pick up our garbage, maintain our parks, and staff our libraries and voting booths. If  you need help in the middle of the night, most likely a city worker will respond. 

  • $22M City structural deficit ahead of the 2025 budget

    Madison has faced a budget shortfall of some degree every year for the past 14 years due to strict state revenue restrictions. The City's total operating budget, made up largely of employee wages, is $405 million in 2024.

  • 19% Madison's population growth since 2014

    Madison is booming — it is the fastest growing community in the entire state with nearly 50,000 new residents since 2014. But the City has fewer workers per capita to deliver basic services.

  • 217 Additional employees if City workforce kept pace with population growth

    The total number of full-time City employees hasn’t kept up with Madison’s population increase since 2014. The City is providing service to more people with fewer employees per resident.

  • FLAT Funding for Metro Transit in operating budget since 2014

    Madison Metro is receiving almost exactly the same amount annually from the operating budget as it was in 2014 when adjusted for inflation. Infrastructure improvements in the capital budget for bus rapid transit, largely paid for with federal dollars, do not impact available revenue in the Operating Budget.

Madison receives $29 in shared revenue per resident, the average is $195

Reasons for the Structural Deficit

The City's structural deficit is the result of two basic dynamics: a rapidly growing city and restrictions on revenue enacted by State Legislature and former Gov. Scott Walker. Since 2011, the State Legislature has strictly limited the amount of revenues available to pay for City Services. 

In addition, the State Legislature distributes shared revenue to intentionally give less to Madison. The average received by cities in Wisconsin is $195 per resident. Green Bay receives more than six times more per resident than Madison in shared revenue. West Allis, a city with a population a quarter of Madison's, receives more shared revenue. Madison receives $29, the lowest amount per resident of any city in Wisconsin.

Despite being a primary driver of the state economy and contributing over $1 billion dollars in state taxes, Madison residents get just 18 cents for every dollar they pay in state taxes. And that includes state aid provided to the City, School Districts, and Dane County.

The main reason for the lower amount for Madison is cuts in shared revenues made to balance the state’s budget between 2003 and 2011. If shared revenue had increased at the rate of inflation since 2003, Madison would be receiving nearly $20 million in 2024. If Madison received the per-resident average for Wisconsin cities, we would get $54 million.

Contact your State Legislator

Budget Timeline

  1. Finance Department Informational Budget Series Completed

  2. Council Public Engagement on Budget Completed

  3. Election Day Upcoming

  4. Final Approval of the 2025 Budget Upcoming

Frequently Asked Questions

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