Madison Operating Budget Introduced

Earlier this week, Madison Mayor Satya Rhodes-Conway introduced her proposed 2023 Operating Budget. The budget, which pays for much of what is considered basic services, totals $381.9 million, a six percent increase in spending from last year and the highest year-over-year increase since 2009.

The increase is in part attributable to one-time spending items, including employee payments and funding for a private-public endowment to support on-going homeless shelter operating costs. Also adding to the increase is the amount of spending to pay back borrowing (debt service), which increases nearly 10 percent.

Efforts to balance the budget is benefited by the successful closure of TID 25 downtown ($6.9 million windfall) and increased state and local revenues. The property tax levy increases by $14.2 million (5.5 percent), due in part to the Town of Madison annexation and net new construction. If approved, taxes on the average home ($376,900) would increase by nearly 4 percent ($110.97).

Among the Mayor’s budgeted priorities are:

• Salary increases and one-time payments for all employees
• Expansion of Madison CARES program to 7 days a week
• Increased funding for the Public Health Department’s Violence Prevention Team
• Increased funding for the Police Department
• Funding for Vision Zero traffic safety programs and infrastructure
• Expansion of staffing and hours at Public Health Madison & Dane County’s reproductive health clinic
• Expansion of the Affordable Housing Trust Fund
• Funding for a new Mad-CAP program which assists low-income households pay for municipal service bills
• Funding for youth employment and internship opportunities

See full budget here.

Finance Committee hearings on the budget begin next week, with council deliberations occurring in mid-November. 

Mayor Rhodes-Conway Introduces Capital Budget

Earlier this week, Madison Mayor Satya Rhodes-Conway unveiled her 2023 Executive Capital Budget and six-year Capital Improvement Plan (CIP). The annual document details funding proposals for capital projects and programs, including buildings, infrastructure and other long-term improvements. 

Among the Mayor’s budgeted priorities are increased funds for affordable housing projects ($60 million over six years), bus rapid transit service ($23 million) and electric vehicles ($2.5 million), planning for potential Amtrak rail service ($350,000) and John Nolen Drive reconstruction and revisioning ($21.6 million). Specific to the city’s Economic Development Division are investments in the Small Business and Equitable Recovery Program, Building Improvement Grants, and the Commercial Building Ownership program – programs which the Chamber supports.  

The $368.4 million plan is largely funded through General Obligation Borrowing, along with other intergovernmental funds and proceeds from sources like successful Tax Incremental Financing districts. The amount of the operating budget going to pay down debt service is projected to rise to 17.4 percent of the general fund budget in 2023 and increase to 20 percent by 2029.

Similar to previous years, the budget package also includes a “Horizon List” for projects that have stated support without approved allocated funding within the CIP. The 2023 list includes a new North Side Police District Station, upgrades to the Olbrich Botanical Gardens and the construction of McPike Park. 

This month, the Finance Committee will take into consideration amendments to the Capital Budget. On Oct. 10, the Mayor will introduce the Executive Operating Budget. Hearings on amendments will follow shortly after the announcement, with Council approval in November. 

Statement from Chamber President on Signing of CHIPS and Science Act into Law

FOR IMMEDIATE RELEASE (August 9, 2022)
Contact: Erik Greenfield, Communications Manager, 608-443-1952 (office), 608-669-7884 (cell)

Statement from Chamber President on Signing of CHIPS and Science Act into Law

MADISON – Today, President Biden signed into law the $280 billion CHIPS and Science Act. Included in the law is a $10 billion investment over five years to create 20 geographically distributed “regional technology hubs” that will focus on technology development, job creation and expanding U.S. innovation capacity.

The Greater Madison Chamber of Commerce has partnered with the Brookings Institution on this issue and led multiple delegations of Greater Madison business leaders to Capitol Hill to advocate for this proposal. In response to the signing, Chamber President Zach Brandon released the following statement:

“The regional technology hubs program represents an extraordinary, bipartisan effort to maximize Greater Madison’s – and the nation’s – economic potential.

“This is a huge opportunity for Greater Madison and Wisconsin. A 2019 Brookings report touted our region as the prime candidate for tech hub growth and the need to develop more such hubs across the nation’s heartland.

“We are excited about this opportunity to bolster well-positioned metros to establish more superstar cities, create more prosperity and strengthen our global innovation standing.”

About the Greater Madison Chamber of Commerce:
The Greater Madison Chamber of Commerce is the voice of business with more than 1,200 organizations – ranging from one-person shops to corporations with more than 10,000 employees – working to bring the Greater Madison area to its full potential. The Greater Madison region is a leader in innovation. From cutting-edge technologies to distinctive retail shops to inventive services and products, our members vary greatly but are united by the region’s entrepreneurial spirit. More information can be found at madisonbiz.com. 

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City of Madison Developing New Commercial Energy Savings Program

There are upcoming opportunities for Madison businesses to provide feedback on a proposed program that would place new energy efficiency requirements on certain buildings in the City of Madison. The proposed Building Energy Savings Program would require commercial buildings 25,000 square feet and larger to annual report building energy use to the City of Madison. For commercial buildings 50,000 square feet or larger, improvement “tune-ups” would need to be reported every four years.

The proposal would currently exempt buildings less than 25,000 square feet, residential buildings, parking lots and garages, as well as buildings used for industrial or manufacturing purposes. For tenant occupied spaces, building owners would need to work with tenants to meet the program requirements. The desired timeline is for the program to be adopted this year with compliance beginning in 2024.

The stated goals of energy efficiency and reducing carbon emissions are shared business goals. Taking a mandatory approach to energy benchmarking is not new or innovative and has failed in the past.  

What is Benchmarking? 

In 2013, the city originally proposed mandating energy benchmarking for certain types of buildings in the City of Madison. Energy benchmarking is the practice of comparing a facility’s energy usage to the energy usage of similar facilities to assess opportunities for improvement. When done voluntarily and where the information is confidential, benchmarking can be a useful tool to assess energy management.   

While supportive of energy benchmarking as a practice, the Chamber had several concerns with the proposed mandatory approach. For starters, it would result in required upfront consultant costs to business without producing any actual energy savings. Importantly, employer data is proprietary and must also be protected. In the 2013 proposal, local government would collect the data, allowing for the information to potentially be shared publicly without context of building use and consumption needs. Lastly, the past proposal required businesses to pay for energy audits to verify the collected data is accurate.  

Ultimately, the Chamber’s concerns were addressed with the passage of a substitute proposal that directed the City Engineer to establish a Public/Private Voluntary Benchmarking Program. To date, that legislative requirement has not been pursued.  

What happens next? 

City leaders have emphasized that they want a collaborative process in the development of this new program. Businesses are invited to attend upcoming workshops to gather input on the program design on July 20, July 27 and August 3 at 1:00 p.m. We will include any relevant information in our weekly emails. Do not hesitate to reach out to Chamber staff with any questions, thoughts or concerns.   

Register for the meeting and workshops here: https://www.eventbrite.com/e/368559039007

The Chamber will continue to be actively engaged in these discussions and recommend sustainable and impactful approaches to meet shared goals of reducing carbon emissions.   

Imminent End of Local Public Health Orders an Extraordinary Step Forward for Dane County Businesses, Individuals

FOR IMMEDIATE RELEASE (May 18, 2021)

Contact: Erik Greenfield, Communications Manager, 608-443-1952 (office), 608-669-7884 (cell)

Imminent End of Local Public Health Orders an Extraordinary Step Forward for Dane County Businesses, Individuals
Decision represents a significant milestone on the way to our “next normal”

MADISON – Today, Public Health Madison & Dane County (PHMDC) announced the end of all public health orders, including mask requirements and gathering and capacity limits, effective June 2. In response, Greater Madison Chamber of Commerce President Zach Brandon released the following statement:

“This decision is an extraordinary step in the right direction and further evidence that vaccines are safe and effective against COVID-19. We appreciate Public Health following the science and the data and continuing to align these decisions with CDC guidance while also giving businesses time to prepare for full reopening.

“This is especially encouraging news for Dane County businesses, who have been doing their part through improved health and safety protocols, workspace upgrades and encouraging their employees to get vaccinated. Their efforts are a significant reason why Dane County is seeing its lowest case counts in months and becoming a state and national leader in vaccination rate.

“For businesses, employees and others who have worked so hard to protect themselves and others and mitigate the spread of COVID-19, today is a major milestone on the way to our ‘next normal.’”

About the Greater Madison Chamber of Commerce:
The Greater Madison Chamber of Commerce is the voice of business with more than 1,200 organizations – ranging from one-person shops to corporations with more than 10,000 employees – working to bring the Greater Madison area to its full potential. The Greater Madison region is a leader in innovation. From cutting-edge technologies to distinctive retail shops to inventive services and products, our members vary greatly but are united by the region’s entrepreneurial spirit. More information can be found at madisonbiz.com.

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