MILWAUKEE — The Milwaukee County Board on Thursday voted 15-3 to nearly double the county sales tax as part of a bipartisan Wisconsin funding plan to prevent deep cuts to services and avoid potential bankruptcy.
Supervisors voted as follows (yes in favor, no against):
Alexander: Yes
Burgelis: Yes
Clancy: No
Coggs: Yes
Gomez-Tom: Yes
Johnson: Yes
Logsdon: Yes
Martin: Yes
Martinez: Yes
Nicholson (chairwoman): Yes
Rolland: Yes
Shea: Yes
Staskunas: Yes
Sumner: Yes
Steve Taylor: No
Sequanna Taylor: No
Vincent: Yes
Wasserman: Yes
The vote comes after the 2% city sales tax increase was passed earlier this month.
Estimates say it would bring in $7 million in revenue to the county each month.
The tax will go into effect on January 1.
WATCH: TMJ4's Julia Fello spoke to people moments after the amendment passed, hear what they had to say...
After several town halls, people had mixed opinions on the bump. The County Executive is in favor of the hike, saying it's the only way to keep up services like transit and parks.
"We are not able to provide the programs and services that so many in our community rely on," said County Executive David Crowley. "That's extremely important on why we need the local option sales tax... because that only not address the scale because that's also the cheapest option available to making sure we can fill the gap to provide these services."
County Executive David Crowley issued the following statement after the tax hike's passage:
County Executive David Crowley Celebrates County Board Vote to Secure Fiscal Future and Preserve Critical Services for Most Vulnerable Residents
MILWAUKEE, WI – Today, in a meeting of the Milwaukee County Board of Supervisors, members board members voted to enable an update to the current countywide sales tax, avert a looming fiscal cliff, and preserve critical services residents rely on each day. In a statement released after the vote, County Executive David Crowley praised members’ commitment to securing the future of Milwaukee County:
“Today, the County Board of Supervisors shaped the future of the Milwaukee County for years to come by avoiding a devastating fiscal cliff that posed to threaten irreparable harm to our community. After years of advocacy, Milwaukee County finally has the additional revenue needed to avert financial disaster.
“Thank you to the leadership of Chairwoman Maricela Nicholson, Finance Committee Chair Liz Sumner, and Personnel Committee Chair Willie Johnson, Jr. for their leadership and assistance in making this idea a reality. In addition, I am extremely grateful for the entire County Board of Supervisors for soliciting the opinions of their constituents and bringing that perspective to each part of the legislative process.
“We all share a vision of Milwaukee County where expanding programs making a difference in our neighborhoods, like youth services and housing services, are a possibility each year. We all strive for a future where we can make necessary investments to preserve the gems, like our world-class parks system, that make our region unique. And, with our stated goal of achieving race and health equity in mind, we all envision a future where health outcomes in our community aren’t determined by your race or where you live.
“Milwaukee County is now on a path to preserve critical services, invest in improving quality of life for all county residents, and accomplishing our vision of a healthier, safer Milwaukee County for all.”
Saving Milwaukee city and county from financial cliff
As The Associated Press reports, Milwaukee is struggling with an underfunded pension system and not enough money to maintain essential police, fire and emergency services. Milwaukee has increasingly become reliant on federal pandemic aid to fund its essential services, which city leaders have said cost $150 million more per year to maintain.
The state Legislature and Gov. Tony Evers negotiated for months over a deal signed into law last month that gave the city the option to raise the local sales tax to help it avoid insolvency in 2025. The bill signed by the Democrat Evers, and passed by the Republican-controlled Legislature, boosts state aid to local governments by $275 million and ties future aid payments to the state sales tax.
Leaders, including Milwaukee Mayor Cavalier Johnson and U.S. Rep. Gwen Moore, who represents Milwaukee, urged adoption of the higher local sales tax to avoid bankruptcy like Detroit in 2013. They warned of catastrophic cuts including laying off 700 police officers, 250 firefighters and 400 other city workers. They also warned of possible library closures and reductions in other basic services like trash pickup and snow removal.
The Milwaukee Common Council voted 12-3 on July 11 to approve the higher sales tax. That was two more than the two-thirds majority needed to succeed. Mayor Johnson then signed it into law.
Milwaukee County was also given the power to nearly double the current 0.5% countywide sales tax to 0.9%, under the shared revenue plan made under the Republican-controlled legislature.
Detroit's bankruptcy loomed over the debate about what to do in Milwaukee.
Detroit was the largest municipal bankruptcy filing in U.S. history. The city emerged from bankruptcy in December 2014, having restructured or wiped out $7 billion in debt. Detroit was forced to follow a state-monitored spending plan and has been able to build cash surpluses.
Wisconsin state law does not allow for cities to declare bankruptcy, which means the Legislature would have to vote to allow Milwaukee to take that step if the city were to run out of money.
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