(The Center Square) – Almost all of Milwaukee’s sales tax money last year went to paychecks and pensions, according to Sen. Van Wanggaard, R-Racine.
Wanggaard released a report that said Milwaukee spent almost all of the nearly $200 million in new sales tax money on the people who work for the city.
“The Legislature helped Milwaukee because it said it couldn’t afford to hire more police and was going bankrupt – quickly,” Wanggaard said. “And what do they do? They balloon their budget and give large salary increases for everyone but police.”
Wanggaard said he compared the spending reports from Milwaukee’s budget and figures from the Legislative Fiscal Bureau that show that 90-99% of “new” revenue went to either pension payments or increased pay for city workers, other than police.
“Pay raises accounted for 70-76% of those revenues depending on if you believe the city’s budget amount or the Comptroller’s amount of sales tax revenue,” Wanggaard’s report stated.
He also noted that the LFB reported that “the City of Milwaukee budget office reported $182.5 million in actual expenditures tied to sales and use tax revenues in 2024, while the City of Milwaukee Comptroller reports $200.6 million in sales and use tax revenues received in 2024.”
Milwaukee created a new city sales tax as part of a local government agreement last year. That agreement, officially known as Act 12, not only allowed for a new city sales tax, but it restructured how the state shares tax dollars with local governments.
Wanggaard said Milwaukee’s spend on itself approach flies in the face of that deal.
“Milwaukee is re-creating the same problem that led to Act 12. It’s creating unsustainable ongoing budget levels, all while short-changing public safety,” Wanggaard added. “Fool me once, shame on you. Fool me twice, shame on me. There isn’t going to be a second chance. More money won’t be coming.”
