Before 2024, the City of Milwaukee’s primary revenue sources—transfer payments from the state, property taxes, and charges for service—were quite stable, but largely stagnant. Shared revenue payments from the state had been frozen for nearly two decades, and that, along with property tax levy limits and rising pension costs, left the city on the precipice of a fiscal cliff. The city’s 2024 budget faced a $180 million budget deficit, and there were no viable options for closing the budget gap short of devastating cuts to public safety.
The state legislature passed sweeping legislation known as Act 12 in spring 2023 to stave off the city’s impending financial disaster. The act also made other changes impacting municipalities across the state. It authorized a new two percent sales tax for the City of Milwaukee, with proceeds to be used for paying off unfunded actuarial accrued pension liability and increasing the number of public safety personnel.
The responsibilities of Milwaukee’s elected comptroller include independently recognizing revenue in the city’s budget. The Comptroller’s Office became the lead city agency responsible for estimation and administration of the city’s new two percent sales tax, also becoming, by default, the lead agency in charge of communicating information about the sales tax to elected city officials, other internal stakeholders, and the public at large.
- Publication date: June 2025
- Author: Bill Christensen