Milwaukee budget faces $104.5 million gap by 2031, report shows
Milwaukee comptroller discusses city's budget problems
A new report shows the City of Milwaukee's budget is in rough shape. That's despite the two-year-old sales tax increase and the fact its savings accounts are strong. FOX6's Sam Kraemer sat down with the comptroller, who says city leaders need to make changes.
MILWAUKEE - A new report shows the City of Milwaukee's budget is in rough shape.
Despite implementing a 2 percent sales tax increase in 2024, and the fact that its reserve fund and other savings accounts are in good shape, a five-year forecast from Comptroller Bill Christianson projects a $104.5 million structural deficit in 2031.
Milwaukee's budget situation
What we know:
Coming up with the solution to solve that recurring issue isn't Christianson's job, but he does have an idea on where to start: Madison.
Every city is judged by the services it provides using tax dollars. This includes police, fire, and public works to name a few.
In fact, right now, Milwaukee Mayor Cavalier Johnson is asking for public input on where citizens want the city to spend and scale back.
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Comptroller Bill Christianson
In an interview with FOX6 News Thursday, Christianson said it will be imperative for the city's dozens of departments to shrink their budgets. But he said he doesn't think that will be enough.
"I certainly think that we should do the belt tightening, reduce expenditures when and where we can, and do everything that we can to maximize the revenues that are available to us," said City Comptroller Bill Christianson. "But I think just doing what's within our control doesn't close this gap I think in a meaningful way."
Christianson acts as an independent watchdog for the city's finances. His office works with the mayor's office and common council, not underneath them.
Five year financial forecast
What we know:
And now, every year, thanks to Christianson's efforts, the comptroller will release an updated five-year financial forecast to inform the council and mayor's office of the city's financial standing.
His first report, released Wednesday, forecasts a $52.5 million structural deficit for 2027. By 2031, his office projects that number nearly doubles to $104.5 million, which represents 5 percent of the current budget.
Right now, the city's three "savings accounts" — the tax stabilization fund, pension reserve and public debt amortization fund — have done well to help the city fill short-term gaps. That said, Christianson said dipping into those accounts isn't a long-term solution.
Part of the reason Christianson said that's too big a gap to solve with just budget cuts stems from state law. The same legislation that allowed the city to impose its 2 percent sales tax also mandated hiring more police officers and firefighters.
"The two largest departments – we're not able to... we have no ability to shrink. They're in fact going to grow," Christianson said.
What can be done?
Big picture view:
Outside City Hall, residents have ideas on savings.
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Matt Koehn, who himself credited the city's spending on events benefiting the arts, had an idea when asked by FOX6 News which city service he'd be ok with cutting.
"Oh my goodness. Let's get rid of parking enforcement," Koehn said jokingly.
However, cuts to the Department of Public Works, a department largely funded by fees, would mean the city generates less money and fails to address the underlying issue.
While the city can increase property taxes, the amount remains limited by state law, and collecting more sales tax requires state approval.
When asked how taxpayers should feel about this, Christianson didn't sugarcoat it.
"I think it's right to be concerned. I think there should be a concern. You know, this report identifies some really sizable structural deficits moving forward. And I think the way to interpret this, and the conclusion that I come to as part of the forecast, is it's going to require partnership with the state on our revenues and our expenditures. I think there has to be action that is outside of what the city currently is able to do unilaterally," Christianson said.
Portions of this article were formatted using A.I. FOX6's Sam Kraemer and an editor reviewed it for accuracy and tone prior to publishing.
The Source: Information in this story was gathered from City Comptroller Bill Christianson, Mayor Cavalier Johnson, and FOX6 News reporting.