2023 Was a Momentous Year For the City

2023 was a very busy year at City Hall. The council took actions that will profoundly impact the future of the city. First and foremost, the council adopted a city wide general sales tax of 2% that went into effect on January 1, 2024. The revenue from this tax is dedicated to paying mandatory pension obligations and maintaining police and fire department staffing levels.

This sales tax was enabled by state legislative action known as Act 12. Act 12 allowed the city and Milwaukee County to adopt a general sales tax of 2% and .75% respectively on a 2/3 vote of the council and county board. Act 12 also increased the amount of shared revenue that the state sends to local governments across the state and imposed several policy mandates on the city such as limitations on the power of the Fire and Police Commission, requiring MPS to return police officers to public schools (the MPS school board voted to remove police officers several years ago), requiring super majority voting requirements for council action on legislation authorizing expenditures and mandating minimum staffing levels for the police and fire departments among others (even if we did not approve the sales tax). The council strenuously objected to these policy mandates.

Approving the sales tax was a very difficult vote for me. No one likes raising taxes especially taxes that fall disproportionately on lower income families and that could create a “tax island” effect. However, I concluded that the council effectively had no choice. Given the decline in shared revenue from the state over the last 25 years, the continued increase in operating costs, limitations on our ability to increase property taxes, and escalating mandatory pension obligations the city was facing a “fiscal cliff” for the 2024 budget and beyond that would have necessitated massive layoffs including a projected layoff of 700 police officers, 200 firefighters and 400 general city employees and the possible elimination of all public libraries and closing half of fire stations. These service cuts would have had a massive impact on all of our citizens and neighborhoods. Moreover, the policy mandates on the city contained in Act 12 would have remained in place even if the council did not adopt the sales tax. After much soul searching and debate, the council approved the tax on a 12-3 vote on July 11, 2023.

In addition the council adopted the updated comprehensive land use plan for downtown Milwaukee known as “connecting MKE; Downtown Plan 2040” which establishes the blue print for the continued growth of downtown and the council adopted the Milwaukee Climate and Equity Plan which sets forth our goals aspirations to address climate change at the local level. The council also directed the Department of Public Works to apply for “Small Start Grants” from the Federal Transit Administration (“FTA”) to extend streetcar service from St. Paul & Vel Phillips Ave to Fiserv Forum via Vel Phillips Avenue and to extend streetcar service from Burns Common to Brady Street via Prospect and Farwell Aves and to seek planning grants from the FTA to enter project development for future streetcar service to Bronzeville and Walkers Point. Look here for the streetcar expansion update.

I want to thank all of you who have contacted my office about these major policy initiatives. The sales tax debate in particular generated a great deal of comment and this was appreciated. Finally, it is my honor and privilege to be your representative at city hall.