Madison voters will decide this fall whether to raise property taxes to avoid cuts to city services.

This comes after the City Council voted 17-2 this week to put a $22 million proposal on the November ballot. If voters approve, the measure would increase property taxes for the average Madison homeowner by an estimated $240 per year.

Supporters say raising Madison’s property tax limit is necessary to offset a growing budget deficit caused by limited state revenues, dwindling pandemic aid and the increasing needs of a growing population.

In a statement Tuesday evening, Madison Mayor Satya Rhodes-Conway praised the City Council for making the “difficult decision” to put the bill before voters.

“Passing a referendum in November is the only budget path in 2025 that protects our values ​​as a community while working to address the chronic underfunding of local governments at the state level,” the mayor said.

If the measure fails, Madison could cut spending by $6 million in 2025, which could result in 60 layoffs, according to city budget documents.

Among other possible cuts, city officials have discussed downsizing the police and fire departments and closing all libraries on Sundays.

However, if the referendum is passed, city officials say service cuts in Madison could be avoided at least until 2030. The plan also calls for special fees to be charged to property owners starting in 2027 and for about $25 million to be withdrawn from the city’s reserves over a five-year period.

During a public hearing earlier this month, Dan Rolfs called for the referendum to be passed, adding that Madison is facing a decision about “what kind of community we want to be.” Rolfs represents some Madison city employees as union president of the Madison Professional & Supervisory Employees Association.

“Will we continue to have the same high quality and level of services that we have all always enjoyed?” he asked the council. “Or will we be left with a lurch, with reduced library hours, bulky waste collection, public safety, park maintenance and facility upkeep?”

But Madison resident James Ganther spoke out against the measure during a city council meeting earlier this month, warning that the city should instead focus on keeping spending under control.

By raising taxes, Madison could encourage landlords to pass on their additional costs to tenants, he said.

“Rents in Madison are already astronomically high,” he said. “Rent increases continue to rise, and the city will make them even more severe if it passes this referendum.”

Proposal to be published together with two school district tax issues

The city’s proposal won’t be the only tax issue on Madison’s ballot in November.

For the first time, Madison voters will be asked to consider both city and school-related property taxes in the same election.

In June, the Madison Metropolitan School District voted to put two referendums totaling more than $600 million on the ballot in November.

The first $100 million project will help the school district cover its operating costs. The second $507 million project will go toward renovating and replacing aging buildings.
According to an analysis by the Wisconsin Policy Forum, the school referendums would be “unprecedented in size and scope in the district’s history.”

Editor’s note: Corrinne Hess contributed to this story.