Waukesha County budget cuts; sales tax on the table for future
WAUKESHA, Wis. - A big question looms as Waukesha County grapples with potential budget cuts: How much longer until the county implements a sales tax?
The county is one of only four in Wisconsin that does not currently have a sales tax. It is on the table for 2026 and beyond.
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Budget gap
County Executive Paul Farrow said there is a $5 million budget gap that will be filled this year.
"Just like everybody else and every other business out there, we’re starting to see a crunch," Farrow said.
Paul Farrow
The county executive said his upcoming 2025 budget will see cuts on par with the last few budget cycles, adding that revenue generated from property taxes is not enough anymore.
"We’ve been in a position now for the last five, six or seven years now at least, of cutting departments. Between $2 million and $2.5 million a year, we’re asking departments to cut their services," he said.
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For example, Waukesha County Sheriff Eric Severson said his department needs roughly $2.8 million to continue providing services at the same level as last year.
The sheriff said his budget already includes eliminating two deputy positions and a contract for required jail medical services that’s projected to increase an additional $900,000.
Waukesha County Jail
"We’re at a point now – we’re probably as far as we can go," said Farrow.
There’s a meeting to discuss options for the 2025 budget on Tuesday night. Farrow said he’ll present a balanced budget to the county board at the end of next month and expects discussions about a possible sales tax to be ongoing.
Are county sales taxes effective?
One of the options being explored by a county budget task force for 2026 and beyond is a sales tax.
Waukesha, Racine and Winnebago counties don’t have a county sales tax. Like Waukesha, Racine County is considering a sales tax. Manitowoc County is adding one in January.
Wisconsin counties that do not have sales tax or plan to add a sales tax
FOX6 asked Wisconsin Policy Forum's Ari Brown if sales taxes have been a proven, effective tool for raising revenue at the county level.
"Definitely they are important sources of revenue," Brown said. "It can be tough to go to voters and ask them to implement new taxes – that’s probably why we still see a couple of counties who don’t have them."
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Milwaukee County facing $19M deficit, even after raising sales tax
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Severson said he’s in favor of any options that provide resources to adequately fund public safety, but one group opposed to a sales tax for the upcoming budget is the Waukesha County Business Alliance.
Statement from Waukesha County Business Alliance:
"The Waukesha County Business Alliance has been actively involved in the county's Budget Task Force and we appreciate County Executive Paul Farrow’s efforts to engage with the public and actively seek input from the business community. The Alliance would not support a .5% county sales tax increase for the upcoming Waukesha County Budget. A strong business climate is essential for Waukesha County's success. Our members are facing rising costs, interest rates, and inflation. We have heard about the potential need for revenue increases in future budgets and we will continue to evaluate any future proposals to make sure they fit the ‘Waukesha Way’ of lean government with the lowest tax burden possible. We appreciate County Executive Farrow’s commitment to good government, focused on fiscal conservatism and solid planning. We will continue to work with him to make Waukesha County a great place to live and do business."