'Doomsday scenarios': Milwaukee leaders testify about deep cuts residents could face without local aid package

 

MADISON, Wis. (CBS 58) -- Milwaukee leaders stressed the deep cuts they will be forced to make to police and fire departments if a bill to fund local governments doesn't cross the finish line.

Testifying before lawmakers, Milwaukee Mayor Cavalier Johnson and Milwaukee County Executive David Crowley warned members of the Senate Committee on Shared Revenue, Elections and Consumer Protection about the dire financial situation they will face without a new funding mechanism to pay their bills.

Both the Assembly and Senate are currently split over how the city and county can receive more money by increasing their sales tax, in addition to the bill providing a funding increase to all local governments.

With Milwaukee facing a $156 million dollar budget deficit next year, city officials estimate cuts to libraries, police, and fire services could range from 10% to 25%. That alone would result in the loss of anywhere from 355 to 890 employees.

"That will dramatically increase our emergency response times, it will harm quality of life in Milwaukee and reduce basic city services to unacceptable levels," Johnson said. "If the bill doesn't pass…those doomsday scenarios will come to fruition."

To avoid these outcomes, the proposal would allow the city to levy a 2% sales tax increase while also adding a 0.375% sales tax on top of the county's current 0.5% tax. The revenue collected from the sales tax would be used to pay down pension obligations and keep essential services running.

Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu don't agree with who would have the power to raise taxes. Assembly Republicans passed the bill last week allowing voters to decide through referendum, while LeMahieu prefers having the Milwaukee Common Council and Milwaukee County Board of Supervisors vote to raise the sales tax.

In Milwaukee County, the current financial situation is not as dire as the city's looming crisis but by 2028 their structural deficit is anticipated to reach $109 million, Crowley said.

"We don't have any fat to trim," said Crowley. "We would have to cut off a major limb of ours, we're talking about senior services, Milwaukee County transit system, and our parks."

During the hearing, the Republican co-authors of the bill, Mary Felzkowski and Rep. Tony Kurtz, said they understand what is at stake for Milwaukee and all local governments if lawmakers are unable to reach consensus on the proposal.

"We understand bankruptcy for the city and county would be detrimental for the entire state," Felzkowski said.

Kurtz said while the bill is not perfect, he stressed how it's been over a decade since local governments have received an increase of state aid, known as shared revenue. The percentage of shared revenue each municipality receives has been relatively flat since 2012.

"If this bill doesn't pass, we will be frozen in those numbers once again and communities will not see an increase," said Kurtz.

Under the proposal, 20% of Wisconsin's state sales tax collections would go to local governments.

The Senate is still negotiating with the governor's office on the bill which also includes a handful of GOP-supported policy proposals that restrict local control.

One includes putting cities and counties at risk of a 15% cut in state funding if they fail to meet certain criteria such as maintaining staffing levels at police and fire departments.

Another provision prohibits the City of Milwaukee from funding positions that promote diversity, equity, and inclusion.

Johnson said as talks continue over the bill, he hopes some of those policy proposals will be removed.

Changes to the bill could occur in the Senate, but for now, Vos said Assembly Republicans don't plan on considering their amendment.