Milwaukee’s Proposed Budget Includes Property Tax, Fee Increases

Nine months after Milwaukee started a new 2% citywide sales tax, the city’s mayor is proposing a new tax increase to balance the city’s budget.

Mayor Cavalier Johnson delivered his 2025 budget proposal on Tuesday.

“When compared to last year's fiscal situation, 2025 is significantly different,” Johnson said. “Provisions of Act 12 are in-force, leaving non-public safety departments to absorb this proportionately-necessary belt tightening. The funds we deployed from the Biden-Harris Administration's American Rescue Plan Act to sustain city services, especially last year, they're not part of this budget.”

Milwaukee received nearly $400 million in ARPA dollars since 2021 and has either spent or earmarked all of them. The loss of those dollars, combined with pay increases and general inflation, have left Milwaukee with an $87 million budget gap.

The mayor said he intends to close that gap without laying-off city employees.

“During this process I've insisted departments present options examining a range of possibilities to reach their financial goals,” Johnson added. “That approach has allowed us to develop a fiscal plan that keeps appropriate service levels, and maintains the focus on performance goals. Importantly we've avoided the clever one-time maneuvers that would create problems down the line.”

The options included in Johnson’s spending plan include a 2% property tax increase, and fee increase that range from 3% to 6%. Those fees include Milwaukee’s charges for garbage, snow and ice removal, storm sewers, and street lighting. It’s not clear just how high each fee would go.

Johnson’s budget also relies on $192 million from Milwaukee’s new sales tax. That tax was estimated to bring-in anywhere from $184 million to $196 million this year. The city is also in line for another $5.5 million in extra shared revenue from the state.

In all, Johnson is proposing to spend $2 billion.

Common Council members were mum on the spending plan Tuesday, but activists who were at city hall were not.

A small group of protesters interrupted Johnson’s speech to demand he spend even more money on social services and outreach programs.

“Your budget continues to fail Milwaukee,” the protesters shouted. “It over-invests in police and fails to invest in quality-of-life services. Spending $300 million will not keep Milwaukee safe. We call on the Common Council to reject the mayor’s weak budget.”

Milwaukee’s Common Council will take-up the mayor’s budget, starting with committee hearings next month. A final budget is due by November.