One-third of the city of Madison’s state-granted funds, which finance services like the local fire department and garbage collection, could be docked under Gov. Scott McCallum’s plan to balance the 2001-2003 state budget. Due to the $1.1 billion budget shortfall, McCallum has even proposed phasing out the state-financed shared revenue program.
The plan faces criticism from city and county officials because municipal governments across the state will be asked to take a $350 million hit if Gov. McCallum’s proposal passes through the state Legislature.
Mayor Sue Bauman said the proposed budget cuts mean “we’re not off to a good start.”
“Basic city services will be disrupted if the City is forced to absorb the large cuts the governor is contemplating,” Bauman said Tuesday.
Bauman said the governor’s cuts would eliminate $16 million per year from the city’s budget by 2004. She said axing this share of Madison’s finances would have long-term effects on city’s well being.
“Sixteen million dollars represents virtually the entire Streets Division budget,” Bauman said. “It is nearly the amount of money Madison spends on its parks and public health systems combined. Sixteen million dollars is more than 60 percent of what we spend for fire services each year and more than 40 percent of the police budget.”
In his speech to the Legislature Tuesday, McCallum said he would not raise taxes to help ease the deficit problem, but instead he hoped to prioritize spending within state and local governing bodies.
“No one pretends the road ahead will be smooth,” McCallum said. “Just as thousands of Wisconsin families are adjusting their personal budgets, state and local governments must follow suit and begin to live within their means.”
UW-Madison political science professor Don Kettl said budget cuts are important to plug the deficit gap.
“What’s left on the table is UW and state aid to local government,” Kettl said. “If you’re not going to raise taxes, you’ve got to cut somewhere.”
Kettl said he anticipates Madison will not be as affected by the cut as other cities, like Milwaukee and Beloit, which are highly dependant on the shared revenue program.
“Madison is less dependant on the program,” Kettl said. “All communities will feel the pain, but it will be less painful in Madison.”
Bauman said the cuts would also affect the city’s already-formed budget. “The first phase of those cuts, some $350 million, will reduce payments promised in 2002 — promises the Common Council and I and local officials across the state relied upon in building our budgets last year,” Bauman said. Bauman said although state spending outpaced local spending in recent years, resolving the state deficit should be a cooperative effort involving both state and local officials. “Local governments did not create the state budget deficit, but we are willing to be part of the solution,” Bauman said. “It is time the governor and legislature bring us into the discussion to find solutions that make sense.”
