Wisconsin Assembly Bill 289 on Shared Revenue and Its Effects on Madison Property Tax Bills

The Wisconsin Legislature passed Assembly Bill 289 last month, altering the formula for distributing state shared revenue to cities and counties. Madison stands to receive an additional allocation under the new rules that take effect with the 2027 fiscal year. City budget officials in Dane County have begun reviewing how the change will adjust local revenue needs.

The bill responds to updated population and property value data compiled by the Legislative Fiscal Bureau in its June 2026 report. Madison's assessed valuation rose 6 percent in the past two years while surrounding rural counties saw slower growth. This shift triggers the revised distribution that the legislation now codifies.

Effects on Madison Households

Residents could see modest changes in their property tax statements mailed in December 2027. A typical single-family home assessed at the city's median value would contribute to a levy that the Madison Common Council sets each fall. The extra state aid is projected to offset part of the annual increase that otherwise would have been required to maintain current service levels in police, fire and street maintenance.

The Legislative Fiscal Bureau report states that Madison will receive $4.2 million more in shared revenue than under the prior formula. City finance staff calculate that this amount equals roughly 1.8 percent of the general fund. Local advocates note that the figure could reduce the amount the council must raise through the property tax levy by a comparable share.

Next Steps for Local Budgets

The Department of Revenue will issue final aid certificates to municipalities by October 2026. Madison officials then incorporate those numbers into the proposed 2027 budget that goes before the Common Council in November. Residents can review the draft figures at the city clerk's office and submit comments during the required public hearing.