The Mayor of Milwaukee has been on a wild and out of control spending spree. He has borrowed and borrowed and borrowed to pay for all of his spending. Now he has a budget shortfall. He has 2 plans to pay for it, one that hasn't worked is begging and lashing out at the state for the funding, and the second has the city up in arms of cutting public safety.
Right Wisconsin:
When he took over in 2004, the city’s annual budget was $856 million. As of 2015, it was $1.5 billion. Annual borrowing went from $90 million to $285 million. Outstanding debt went from $583 to $720 million. The annual debt service payment went from $103 million to $450 million, a 275 percent increase.
To give that $450 million debt service payment some context, that’s more than Milwaukee’s total public safety budget – which includes the police and fire departments – by $32 thousand.
The Mayor built this city on borrowing and now has put the city in a budget crisis because the time to pay up has come. According to the report 30% of Milwaukee's budget now goes to pay back the debt that the Mayor has borrowed. Hey don't forget though, we have a street car being built.
Right Wisconsin:
The tragic reality of Milwaukee’s debt problem is there’s no need for it. Between its tax levy, intergovernmental aid, user fees, and other financing options, Milwaukee has more than enough “revenue” to operate.
In 2015, the city brought in $1.26 billion not including revenue from new bonding. That year it spent $1.06 billion not including debt service.
So while Tom Barrett points at the state for his city’s financial wreck, his fingerprints all are over the steering wheel.
The good news for Milwaukee is that there is an ongoing effort to recall the Mayor and finally people are starting to take notice of the failed leadership in this city. These now dire budget issues compounded with the issues with the Milwaukee Police Department, Out of Control Crime and the Street Car, it looks like it might be time for a change.
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