Milwaukee voters on Tuesday approved a $252 million property tax increase referendum for Milwaukee Public Schools, despite vocal opposition from the metro area’s leading business and civic groups. The Metropolitan Milwaukee Association of Commerce and the Greater Milwaukee Committee both expressed vocal opposition, with the MMAC launching a costly campaign against the MPS referendum, but they were unable to convince a majority of voters.
With 100% of wards reporting, 51.06% or 41,486 voters supported the MPS referendum and 48.94% or 39,866 opposed it, according to the Milwaukee County Clerk’s office. The difference was 1,720 votes.
Approval of the referendum will result in an increase in MPS’ property tax rate of $2.16 per $1,000 of valuation, which will result in an extra $432 in taxes on a home assessed at $200,000.
MPS officials said the funding increase is needed to prevent about $200 million in budget cuts – cuts they say are due to state-imposed property tax caps that they say have made it impossible for the district funding to keep pace with inflation and have enough resources to compensate and recruit teachers and serve students.
The MMAC, GMC and other outspoken critics of the MPS referendum, including Northwestern Mutual chief executive officer John Schlifske, said the school district had failed to demonstrate how the tax increase would result in improved student performance at MPS.
“While the longstanding challenges at MPS cry out for direct action and significant support, the lack of transparency surrounding this referendum and the failure to clearly articulate a measurable plan for how these additional financial resources will improve student outcomes leave the GMC unable to support the current referendum,” the Greater Milwaukee Committee said in a statement last week. “Without a clear roadmap toward progress in achievement, the process outlined over the last few months appears to be an endorsement of the status quo, something the community should not find acceptable.”
Critics of the MPS referendum also said the tax increase would have a detrimental effect on city residents and make it harder to attract businesses.
“A quarter billion dollar increase in property taxes will put Milwaukee among the highest property tax cities in the Midwest. Google how much the average American has in savings. It’s a $400 (tax increase) for the medium family home in Milwaukee,” said MMAC president Dale Kooyenga at BizTimes Media’s annual Milwaukee Education Spotlight event on Feb. 28. “Milwaukee needs a middle class. We need a middle class, and our middle class cannot afford those types of property tax increases. It also doesn’t welcome businesses.”
Milwaukee voters also improved an $87 million property tax increase for MPS in 2020.
