Mayor Releases 2026 Executive Operating Budget

I want to begin by again thanking Madison residents for approving last year's funding referendum. It was a show of support for the important services your City government provides. The additional revenue is an essential component for overcoming the state-imposed restrictions on local governments across Wisconsin and will allow us to keep taxes to the lowest increases in decades. Instead of enacting painful and damaging cuts year after year, the referendum will allow Madison to maintain its current service levels while addressing a few emerging priorities to maintain our city's high quality of life.

The introduction of the 2026 Executive Operating Budget proposal is the start of the final public input phase of the budget process. Over the next month, the Finance Committee and the full Common Council will deliberate and propose amendments to the operating budget. I encourage residents to make their voices heard during these meetings so your elected officials can support the final adoption of the City Budget knowing it's aligned with our community's values.

Our budgets continue to deal with the structural inequities in how state law treats local municipalities. Currently, cities like Madison are far too dependent on property tax dollars and are prohibited by the State Legislature from using more diverse and progressive revenue sources. As a result, the state has locked cities, villages, and towns into a system that takes away local control and requires them to do more with less each year. We have also witnessed the State Legislature continue to abdicate its responsibility to care for Wisconsin's most vulnerable residents. That's now also happening at the federal level with draconian cuts to Medicaid, public health, food benefits, and other longstanding federal programs that help those that need it most. The result is that local governments must contend with the inevitable consequences of dismantling the social safety net while simultaneously having fewer resources to confront these challenges.

One bright spot is that the most recent state budget included a modest, but much needed, increase to the Municipal Services Payment program, which compensates local governments for providing services to state facilities. While the state is still not fully reimbursing cities, the increase provides an estimated additional $2.4 million annually to the City. More importantly, it's an acknowledgement that stagnant funding for local governments must be addressed moving forward. My administration will continue to work with other Wisconsin communities and state legislators for fairer treatment of local governments at the state level.

It's critical the City of Madison make smart investments that better our community while prudently using limited resources. The community's support for last year's funding referendum has provided some much-needed flexibility without the need to cut existing services. That's why my 2026 Executive Operating Budget proposal has the lowest tax rate increase in at least 40 years. The City's share of property taxes on the average valued home will go up by just $30 annually - below the inflation rate and nearly $5 million below the maximum allowed under the state's levy limit. I'm also proposing using $2 million in fund balance to help close the state-imposed structural deficit gap Madison has had since the levy limit formula was tightened in 2011. That use of fund balance is lower than previously projected and will preserve resources so we can continue to hold down property taxes and reduce reliance on additional special charges in future years. We are able to do this because of the additional state aid and continued strong investment income.

My spending priorities in 2026 are focused on the basic support system that makes Madison a great place to live while confronting new challenges with compassion. I'm proposing an unprecedented investment in homeless services with $1.7 million in support for the new homeless shelter. Historically, it's been the responsibility of other government entities and the private sector to provide emergency refuge to people experiencing homelessness. We will need these partners to also prioritize funding for the shelter to maximize the impact of this new facility and create a path for individuals to find permanent housing. The City is contributing an unprecedented level of funding and I'm confident the entire Dane County community will come together to do what's right.

I've also included additional funding for the newly built Imagination Center at Reindahl Park so it can be fully staffed without diminishing services at the City's nine other libraries. The far east side is one of the fastest growing parts of Madison and has lacked access to the services libraries provide to the community. The Imagination Center will fill that service gap and help ensure that all of Madison's neighborhoods continue to thrive.

My budget also includes funding for a 10th ambulance company in the Madison Fire Department. Calls for service have doubled since 2005 and we receive more than 30,000 ambulance calls annually. In 2024, there were more than 200 times when every ambulance was responding to a call and that number is expected to increase. To address this problem, I'm proposing new positions at the Madison Fire Department to staff a new ambulance company. This is needed to prevent overworking employees and maintain our current response times, even while the City's population increases by nearly 5,000 new residents each year.

The 2026 Executive Operating Budget also reflects the City's commitment to its workforce. The proposal includes a 3 percent wage increase for general municipal staff that keeps pace with the negotiated union contracts with police and fire department employees. I'm also proud that the City negotiated a collective bargaining contract that was overwhelmingly ratified by Teamsters 120, which represents Metro Transit operators and mechanics. The City of Madison is only able to provide a high level of service to its residents because of our staff. Whether it's a firefighter, planner, librarian, or plow driver, ensuring our workforce is paid fairly is a benefit to the entire city and a commitment to fostering a healthy middle class in Madison. Without talented individuals, we cannot come up with innovative solutions and provide the most effective services to residents.

The City of Madison invests prudently in infrastructure and delivers tangible services that benefit our residents on a daily basis. Madison is a strong community with forward-thinking and compassionate residents who understand that policymaking at the local level must be practical, prudent, and provide real solutions. I'm looking forward to the input of Alders and the community during the final phases of our annual budget process. We are proving Madison can responsibly meet new challenges, preserve what's so special about our City, and be proud of the future we are building together.

Respectfully submitted,

Mayor Satya Rhodes-Conway