Majority of Local Spending Referendums Failed in Spring Election

A majority of municipal referendums asking residents to increase their property tax levies failed during the spring election April 1.

Research from the Wisconsin Policy Forum found that eight of the 14 municipal referendums on the ballot last week were not passed by voters. That comes as many local governments are still facing budget shortfalls, even after the passage of a state law to increase revenues that flow back to local government.

The city of Brookfield asked residents to increase the property tax levy by $6 million to keep nine firefighter positions and close a projected budget gap. But 53.4 percent of voters said no on April 1.

Brookfield Mayor Steve Ponto previously told WPR that if the referendum didn’t pass, the city could be forced to cut staff and services. About 75 percent of Brookfield’s budget is tied to employee salaries and benefits.

“We have to think about how we’re going to handle necessary reductions for next year and the year after,” Ponto said about the results of the referendum.

Counties and municipalities rely heavily on property taxes to provide services for residents. But state law limits how much local governments can raise their property tax levies without voter approval.

Last year, 17 municipal and county referendums passed while 14 failed, according to Wisconsin Policy Forum data. In 2022, 29 passed while 15 failed.

“I think the last couple of years of inflation really are the main factor here,” said Ari Brown, a researcher with the forum, about the majority of municipal referendums failing on April 1.

“There’s just a lot of economic uncertainty. And that, I think, is probably weighing on the minds of voters,” he added.

A 2022 League of Wisconsin Municipalities report found voters tend to approve referendums for public safety items. Many, but not all, of the municipal referendums on the April 1 ballot were focused on public safety.

The village of Cottage Grove asked voters to increase the property tax levy by $1.3 million to pay for a new library. Only 33.9 percent of voters said yes to that increase.

The village of Walworth asked voters to increase the property tax levy by $350,000 to fund general operations. Only 21.4 percent of residents voted yes on that referendum.

‘It’s all about public safety’

The city of Whitewater asked residents to increase the property tax levy by $1.3 million to hire five police officers, a dispatcher and two firefighters. That referendum passed with 54 percent of residents voting yes.

“This will be a huge step forward getting us back to a more proactive and community-oriented policing model,” Whitewater Police Chief Dan Meyer wrote in a statement.

Meyer previously told WPR calls for service to the police department increased by 90 percent from 2010 to 2024. But in that time, he said there hasn’t been an increase in the staffing level for the police department.

The city of Marshfield asked residents to increase the property tax levy by about $250,000 to hire two more firefighters. That referendum passed with support from 55.9 percent of voters.

Lois TeStrake, the mayor of Marshfield, said the two firefighter positions have been vacant since 2021.

“We will be back to where we need to be, which is great,” TeStrake said.

“It’s all about public safety,” she added.

The village of Williams Bay asked voters to increase the property tax levy by $399,980 to hire two police officers. The referendum was supported by 53.2 percent of voters.

A statement from Justin Timm, the chief of police for the Williams Bay Police Department, said the passage of the referendum was a “major step forward.”

“Thanks to your [voters] commitment, our community will have the resources it needs to enhance safety, strengthen our emergency services, and continue building a stronger community together,” Timm said.

The city of Racine asked voters to increase the property tax levy by $1.5 million to pay for nine paramedic positions that were temporarily funded by a federal grant. That referendum was supported by 58.3 percent of voters.

‘We’re going to have to look at reducing cost’

A web page with information about Brookfield’s referendum says the city is forecasting a budget deficit of $4 million next year. That shortfall is projected to grow to $7 million by 2029.

“We’ll get a sense from the alderman and department heads, input from the department heads, about what they think is a good path forward and make a decision in due course,” Ponto said after the failure of the referendum.

Robert Scott, the director of finance and administration for the city of Brookfield, said he’ll have discussions with the Brookfield Common Council about next steps.

“We’re going to have to look at reducing cost, and that will have an impact on city services, but that effect is to be determined down the road throughout the coming months,” Scott said.

Voters in the village of Oregon rejected a referendum to increase the property tax levy by $1.95 million to hire three police officers, three public works staff and other village employees.

A village website about the referendum said the population of the village has increased by 27.8 percent from 2013 to 2023. The website said the village is, “understaffed and has a limited ability to keep up with growing demands for services.”

A statement from the village after the referendum failed said the village board will start, “assessing what adjustments may be necessary to the Village’s services, partnerships, and staffing needs over the coming months and year to address the funding challenges ahead.”

Listen to the WPR report

Majority of municipal referendums to raise property tax levies failed in spring election was originally published by Wisconsin Public Radio.