Cudahy mayor warns budget cuts remain after council passes $25 wheel tax

Cudahy mayor warns of budget cuts

Cudahy's mayor is moving ahead with budget cuts after the Common Council approved a wheel tax, a move leaders said only partially addresses a growing financial shortfall.

CUDAHY, Wis. - Cudahy’s mayor is moving ahead with budget cuts after the Common Council approved a $25 wheel tax – a move city leaders say only partially addresses a growing financial shortfall.

What we know:

A wheel tax is an annual fee charged to vehicle owners, collected through registration, that municipalities use to fund local services and transportation-related costs.

The wheel tax, approved Tuesday night, will not take effect until May 1 and is half the amount city officials initially proposed. Mayor Ken Jankowski says Cudahy is facing a roughly $1 million budget gap driven by rising operating costs, leaving city departments bracing for reductions.

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The council had previously rejected a $50 wheel tax in November, which officials say would have fully closed the gap. The newly approved $25 tax is expected to generate about $175,000, falling far short of what’s needed to avoid cuts altogether.

"There will still be cuts and things streamlined because it won’t cover everything," said Jankowski.

Jankowski says the council’s shift toward approving a smaller wheel tax came after residents and officials recognized the potential impact on city services, including police and public works.

Officials say the revenue will allow the city to restore some staffing and fund select projects, but only in a limited way.

What they're saying:

"We will be able to fill some positions including some police positions, DPW positions and city projects that people complain about – road repair, we have to buy materials to do all that," said Jankowski.

The mayor says his staff is now reviewing the budget to determine where remaining cuts will come from.

"We are going to have to go back and rework the budget and see what we can do within the confines of that money," said Jankowski.

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Jankowski is also calling on state lawmakers to release surplus state budget surplus funds to local governments, arguing it could reduce the need for new local fees and taxes.

"If the state would just release the money, and keep their fingers out of my business, I could do what I need to do here and not have these fees and this wheel tax," said Jankowski.

What's next:

The mayor says his office expects to have clearer details on the specific cuts by next month.