Citing an unsustainable fiscal model, Milwaukee Mayor Tom Barrett plans to propose a 0.5 percent increase to the sales tax in his 2018 city budget, which he said would generate $35 million annually.
The money would be used for public safety and crime prevention. The tax increase requires approval from the state Legislature and Gov. Scott Walker, and a referendum in April 2018.
If enacted, the tax would take effect Oct. 1, 2018.
“Unless we have an additional revenue source that is not tied to the property tax, you are going to see a dramatic cut in services that our residents do not want, and that I do not want either,” Barrett said this week during the city’s 2018 preliminary budget hearing.
Before announcing his plan for the sales tax increase, Barrett outlined the city’s two major sources of revenue: the tax levy and state revenue sharing.
Since 2004, the tax levy has steadily increased from $200 million to $263 million, he said. His proposed 2018 budget will include a property tax increase, which he said will not be significant.
“The slope is rather gradual,” Barrett said.
Shared revenue from the state has decreased from $249.2 million in 2003-’04 to $228.09 million, Barrett said.
While this has been happening, the city’s budget for the police department has gone from $180 million in 2004 to $302 million in 2017, in large part because of collective bargaining.
“I have tremendous respect for the men and women who work for the Milwaukee Police Department,” Barrett said. “But we need to have an honest conversation about what is happening here and where the dollars have gone.”
If approved, the tax would:
- Increase the number of sworn officers to 1,900 in 2019 and maintain that level.
- Keep two fire department apparatus in the budget that are currently going to be eliminated.
- Pay for two community prosecution units
- Add two additional trauma-informed care counseling units for two police districts.
- Stabilize service in non-protective service departments
