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Milwaukee sales tax vote debate
Create a sales tax or cut essential city services -- that's the choice the mayor says is before Milwaukee's Common Council on Tuesday, July 11. Before that vote, the public had the opportunity to speak for and against during two public meetings Monday.
MILWAUKEE - Create a sales tax or cut essential city services -- that's the choice the mayor says is before Milwaukee's Common Council on Tuesday, July 11. Before that vote, taxpayers had the chance to speak during two public meetings Monday.
"When you're drowning and someone throws you a life preserver, and you don't like the person and throw away the life preserver, that's crazy," a man said in support of the sales tax.
"You're newly elected. Put the mayor's feet to the fire," another man said, in opposition to the proposed tax.
Alderman Lamont Westmoreland
When questioned, Alderman Lamont Westmoreland said he would be voting in support of the proposed city sales tax.
Milwaukee sales tax debate
"We lose sleep over this stuff, you know?" Westmoreland told FOX6 News. "We did not ask for this to be on our shoulders. You know what I mean? We didn't ask for it, but you know, this is what we signed up for."
He hosted Monday's Town Hall at Wellpoint Care Network. State lawmakers, the mayor and the city's police and fire chiefs were part of the crowd and also spoke.
Milwaukee sales tax debate
"It is going to be very, very, very, very difficult for me to provide you adequate protection if we shut down 11 fire stations," said Milwaukee Fire Chief Aaron Lipski.
"With all due respect, I don't believe the deal is a good one," said State Senator Lena Taylor (D-Milwaukee).
"If we do not get this done, then we are going to see Draconian cuts across the city in police and in fire and in library services and so many other services," said Milwaukee Mayor Cavalier Johnson.
City Budget Director Nik Kovac laid out the numbers of what he said would need to be cut if the city didn't get the sales tax: 700 out of 1,600 police officers, 250 out of 700 firefighters and 400 general city employees.
The city sales tax could be two cents more on every dollar spent. The sales tax right now is 5.5%, with 5% for the state and 0.5% for the county. None of that money goes directly to the city, because the state does not have municipal sales taxes.
That could change. A new state law, passed by the Wisconsin Legislature and signed by Gov. Tony Evers, gives the Milwaukee Common Council the power to vote on the issue. They will decide whether they should create a city sales tax of 2%, boosting the taxes on many purchases up to 7.5%. At a later date, the Milwaukee County Board will vote on whether to add 0.4% to the current county sales tax. If both pass, the sales tax in Milwaukee would be 7.9%
"It just seems unfair that during the pandemic, and now, after the pandemic, everybody's got their hands out, and some of us are living paycheck to paycheck," one woman said during the town hall meeting.
"I say that they hold the vote over," one man said. In fact, it will only take three members of the Common Council on Tuesday to delay the sales tax vote until the end of the month.
Milwaukee
The nonpartisan Legislative Fiscal Bureau estimated the city sales tax would generate $194 million a year. Mostly all the money must be spent on the ballooning pension problem. Extra money in future years would need to go to hiring more police officers and firefighters.
"We don’t need more police officers," one woman said during the town hall meeting.
"Everything is getting more expensive, and what is happening is we’re getting piled on," one man said.
Ten of the 15 Common Council members must approve, that's ⅔ of the body, in order for the sales tax to be enacted.
It would expire after 30 years or when the pension is fully funded, whichever comes first.
Milwaukee sales tax debate
The state law puts strings on Milwaukee. The Common Council is also planning to vote Tuesday on ways to push back on the restrictions.
One bans city tax money from going to city jobs that have the principal duty of "promoting individuals or groups on the basis of their race, color, ancestry, national origin or sexual orientation." To get around that prohibition, the council will vote to use some of the city's remaining share of federal pandemic relief money for diversity, equity and inclusion efforts.
Another restriction forbids tax money from being used on the streetcar. Another workaround to be voted on Tuesday would call on the city's public works commissioner to apply for federal grants to cover the costs of expansion of the Hop to Fiserv Forum and to Brady, Farwell and Prospect, as well as start plan development for extensions to the Bronzeville and Walker's Point neighborhoods.