What should be done to address the City of Milwaukee’s budget woes?

My Take

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Milwaukee Mayor Tom Barrett recently presented his proposed budget to the Common Council. It includes police and fire department cuts, including position reductions, but no layoffs. Some critics, including Alderman Tony Zielinski, say a better option would be to cut funding for the downtown streetcar project.


Barrett

Mayor Tom Barrett

Gain new revenue source

The problem

“We have increased employer pension obligations, increased costs to continue service delivery and constrained revenue options. Our city, unlike every other major American city our size, is severely limited in our revenue options. State law limits us to two primary sources of revenue: state shared revenue and property taxes.”

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State government impact

“It is clear local government funding is not a priority in Madison and the decreased, frozen shared revenue formula is costing us tens of millions of dollars. The amount of state revenue generated in Milwaukee now far exceeds the amount of state aid provided to us. The beneficiary of our economic growth is the state’s coffers. That’s because all Milwaukee businesses deliver sales and income tax to the state treasury.”

Sales tax

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“I am not asking the state for more money. I am not asking the state to raise the sales tax. I am asking (the state) to let the people of Milwaukee decide if they want that investment in public safety.”

Zielinski

Alderman Tony Zielinski

Cut spending on the streetcar

The problem

“Barrett laid out his budget plans, which include cuts to Milwaukee’s police and fire departments, all while he continues to spend recklessly on the streetcar project. I am appalled that he would cut police and fire positions without first cutting exorbitant spending on the streetcar. Where are Mayor Barrett’s priorities?”

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State government impact

“The state believes the streetcar is a waste of taxpayer dollars and has inserted a budget amendment restricting the use of TIF dollars, so the city cannot use that money for the operation of the streetcar. The mayor has failed to identify a long-term funding source (to cover the entire cost of) the streetcar’s operation and maintenance, and our police and fire departments could be footing the bill with their jobs.”

Sales tax

“The mayor has to understand that the state will not help the city as long as he continues to spend money we don’t have on the streetcar.”

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