MILWAUKEE — Milwaukee's Steering and Rules Committee vote recommends approving a 2% sales tax after a long day of discussion and public testimony.
The vote came down to 6 ayes and 2 abstained.
Budget and management director Nik Kovac painted a tough reality. He explained that if sales tax is rejected, the city could bridge next year's $183 million budget gap using the remaining American Rescue Plan money and the pension reserve but the city would fall off the metaphoric cliff in 2025. Kovac pointed out that the drop would lead to cutting at least 700 police officers, at least 250 firefighters, and at least 400 general city employees.
"These numbers even at the current level are shockingly high and would change city services on a daily basis to an unrecognizable extent," Kovac said.
State officials estimate the sales tax would generate approximately $190 million in 2024. The majority of the money generated by the sales tax must go to the city's unfunded pension liability.
Alders stressed the increase would be to keep services afloat not necessarily make them better and acknowledged frustration from residents.
During a public hearing, a majority of speakers testified about serious concerns surrounding the provisions aimed at controlling how Milwaukee operates in some ways but encouraged the committee to approve the sales tax because the city cannot afford not to.
"I urge you to take this lifeline and vote yes on the sales tax and ensure city services can be maintained and improved and the city can honor its obligation to the pension system," said Mark Pelzek, a city employee and president of AFSCME Local 46.
One resident would not tell leaders how to vote but they need to learn to stretch the city's dollar
"By looking outside of the state tax what should we do to figure out other ways to resolve this problem," Patina Lawson said.
Before the public hearing, the committee directed officials to review the legality of the provisions aimed at the city.
Common Council president Jose Perez was asked if they have the 2/3 majority to pass the sale tax.
"Not sure," Perez said. "It's fluid. People are going to continue to talk to their constituents and talk to us. All of us are constantly talking to each other."
The full council is expected to vote on the sales on July 11.
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